State Farm lowers car insurance rates

State Farm Mutual Automobile Insurance Co. is lowering its overall rate level in Colorado an average of 7.5 percent effective Oct. 30.

This represents an annual savings of $42.9 million to the company's Colorado customers, said Teresa Tuschhoff, Colorado Legislative Liaison with State Farm Public Affairs in Westminster.

Tuschhoff said it is difficult to determine the savings to an individual policy holder "because each component is going down at a different percentage." She said those policy holders with the heaviest coverage will see the biggest decreases in premiums.

After this rate change, State Farm's overall rates in Colorado will be 35.9 percent lower than they were before the repeal of no-fault in July 2003.

Premiums for the comprehensive and medical payments coverages are decreasing the most. The comprehensive coverage pays for losses from such perils as theft, storm damage, fire, vandalism and glass breakage. The medical payments coverage pays for reasonable health care expenses incurred for bodily injury caused by an automobile accident, regardless of fault, up to the policy limits chosen by the insured.

Premiums for the liability and collision coverages also will go down.