Farm Bureau cuts auto insurance rates

LOUISVILLE -- Kentucky Farm Bureau Insurance announced this week it will soon start the second phase of it's insurance rate reductions.



Roger Simpson, KFB Insurance executive vice president, said phase 2 of the rate reduction package would start July 5, and include reductions in collision coverage and underinsured motorist coverages.



"The package also includes lower premiums for drivers in certain age groups," he said.



In March Farm Bureau increased safe driving discounts for customers who are claim and violation-free for three, five and eight years. Those discounts range from 15 to 25 percent, he said.



Simpson said the company will implement lower premiums for vehicles with good safety ratings, beginning in September.



The company estimates the full package of rate reductions will save auto policyholders some $40 million per year.



"This is the largest overall package of rate reductions in the 61-year history of Farm Bureau," Simpson said.



The lower rates, he continued, are possible because of the firm's improved profitability in 2004 and more favorable claims performance this year.



"Kentucky Farm Bureau has historically offered its members and policyholders very attractive rates, which has helped us establish a pattern of growth that stretches back six decades," Simpson said.



Kentucky Farm Bureau, with 446,000 member families, is the state's largest property and casualty insurer, with over a million policies in forcce.