State Farm Wants to Cut $500 Million in Rates

State Farm Insurance Co. is looking to decrease its auto insurance and home rates for policyholders by $489 million. The Los Angeles company wants to cut premiums paid by 3.1 million auto customers by 10.1 percent, or $259 million, in March and 1.4 million homeowners and condo owners by 20 percent, or a total $230 million in April. The rollbacks have to be approved by the state Insurance Department. Last year, state Insurance Commissioner John Garamendi called on the state’s largest insurance companies to investigate homeowner rates. The review found that carriers were paying out less than $.50 on each dollar to settle policyholder claims.