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Insurance Commissioner John Garamendi has approved a -4.2 percent reduction in personal auto policy rates for “loyal” State Farm customers, a savings of more than $110 million for those policyholders.The Commissioner expedited his review of the proposed reduction in light of State Farm’s -7.6 percent reduction in August, 2004. State Farm has recently worked with the Department of Insurance to seek the most efficient way to provide these further reductions for policyholders.“I commend State Farm for passing savings along to its California policyholders,” said Commissioner Garamendi. “State Farm is the largest auto insurer in California and this reduction proves that it can operate profitably and still reduce its members’ premiums. This is good news for California insurance consumers.”The Department’s Rate Filing Bureau worked with State Farm actuaries to provide the further reductions by expediting a rate application process. Policyholders who have renewed with State Farm for more than six years will receive a 16 percent discount, and those who have renewed for three to six years will receive a discount of 8 percent. The savings will apply to 90 percent of State Farm’s three million policyholders.The filing by State Farm was based on the outcome of a 3-year major reorganization of its operations in California, which has resulted in an improvement of its internal expense management. The rate reduction, effective May 1, 2005, will be applied to customer premiums as the policies renew.