Auto Rates Drop for Nation's Top Insurer for Fourth Straight Year

BLOOMINGTON, Ill., Feb. 25 /PRNewswire/ -- State Farm(R) auto insurance rates declined 4.9 percent in 2007, the fourth consecutive year of rate level* decline for the nation's largest insurer. State Farm's protection against the financial cost of auto accidents was 14.8 percent less expensive at year-end 2007 than it was at year-end 2003.

"We are thrilled to have been able to reduce the cost of auto insurance during a time when the cost of almost everything else has been increasing," said State Farm Vice President and Actuary Kathleen Pechan. "Partly because of our customers' safe driving habits, the frequency of auto accidents has been dropping since 2003."

State Farm's auto insurance rate level over this four-year period declined the most (29.2 percent) in New Jersey, where auto insurance costs have historically been the highest in the country. State Farm officials credit an improved regulatory environment there in addition to the steady decrease in claims.

New York is second (27.0 percent). Colorado, Connecticut and Minnesota are third, fourth and fifth. Oklahoma, Arizona, California, Indiana and Massachusetts complete the top ten.

State Farm's rate level was lower on Dec. 31, 2007 than it was on Dec. 31, 2003 in every jurisdiction in the country.**

"Our status as a mutual insurance company provides us with a distinct advantage," said Pechan. "Our desire to lower our premiums when possible is supported by our ability to focus more on the long term interests of our customers since we don't have public stockholders who tend to focus on short term results."

In addition to the $4.5 billion reduction in premiums over the last four years, State Farm issued dividends in 2006 and 2007 to most of its 40 million policyholders totaling nearly $1.5 billion.

    *   To the extent that an individual customer purchases more insurance
        coverage by, for example, purchasing a newer, more expensive vehicle,
        his or her premium will increase even while the rate level remains the
        same.  As a result, lower rate levels do not necessarily equate to
        lower premiums.

    **  The list of State Farm auto insurance rate level changes by state from
        Jan. 1, 2004 to Dec. 31, 2007 is attached.


      Percentage Amount by Which                Percentage Amount by Which
        State Farm Auto Rates                     State Farm Auto Rates
       Have Declined Between                       Have Declined Between
    Jan. 1, 2004 and Dec. 31, 2007             Jan. 1, 2004 and Dec. 31, 2007
         (sorted by %)                             (sorted alphabetically)


    New Jersey            29.19               Alabama                  8.96
    New York              27.00               Alaska                   10.81
    Colorado              24.82               Arizona                  20.29
    Connecticut           24.30               Arkansas                 15.81
    Minnesota             21.76               California               20.07
    Oklahoma              20.64               Colorado                 24.82
    Arizona               20.29               Connecticut              24.30
    California            20.07               Delaware                 1.74
    Indiana               18.83               District of Columbia     13.83
    Massachusetts         18.58               Florida                  6.74
    Nebraska              18.1216             Georgia                  9.76
    Illinois              18.1215             Hawaii                   15.16
    Utah                  17.70               Idaho                    14.82
    Iowa                  16.72               Illinois                 18.12
    Missouri              16.44               Indiana                  18.83
    Ohio                  16.09               Iowa                     16.72
    Arkansas              15.81               Kansas                   15.69
    Kansas                15.69               Kentucky                 10.45
    Vermont               15.62               Louisiana                1.72
    Maine                 15.42               Maine                    15.42
    Oregon                15.22               Maryland                 11.94
    Hawaii                15.16               Massachusetts            18.58
    Michigan              14.98               Michigan                 14.98
    Idaho                 14.82               Minnesota                21.76
    North Carolina        14.68               Mississippi              9.55
    New Mexico            14.22               Missouri                 16.44
    Wyoming               13.95               Montana                  13.78
    District of Columbia  13.83               Nebraska                 18.12
    Montana               13.78               Nevada                   10.59
    West Virginia         13.30               New Hampshire            12.94
    Wisconsin             13.22               New Jersey               29.19
    Virginia              13.13               New Mexico               14.22
    New Hampshire         12.94               New York                 27.00
    Texas                 12.81               North Carolina           14.68
    Maryland              11.94               North Dakota             2.73
    Alaska                10.81               Ohio                     16.09
    Nevada                10.59               Oklahoma                 20.64
    South Dakota          10.49               Oregon                   15.22
    Kentucky              10.45               Pennsylvania             9.50
    Georgia               9.76                Rhode Island             3.77
    Mississippi           9.55                South Carolina           9.53
    South Carolina        9.53                South Dakota             10.49
    Pennsylvania          9.50                Tennessee                7.19
    Alabama               8.96                Texas                    12.81
    Tennessee             7.19                Utah                     17.70
    Washington            6.95                Vermont                  15.62
    Florida               6.74                Virginia                 13.13
    Rhode Island          3.77                Washington               6.95
    North Dakota          2.73                West Virginia            13.30
    Delaware              1.74                Wisconsin                13.22
    Louisiana             1.72                Wyoming                  13.95

About State Farm

State Farm(R) insures more cars and homes than any other insurer in the U.S., the leading insurer of watercraft and is also a leading insurer in Canada. State Farm's 17,300 agents and 67,600 employees serve over 77 million auto, fire, life and health policies in the United States and Canada, and more than 1.9 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 31 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com(R) or in Canada statefarm.ca(R).