The Automobile Club of Southern California has agreed to a rate change for its auto-insurance policyholders that would amount to about $70 million in cuts.
The nonprofit mutual-benefit corporation has core operations in Costa Mesa, while its on-the-books headquarters is in Los Angeles.
The 4.1% rate cut, which was approved by state Insurance Commissioner Dave Jones, will be effective for new or renewed policies after July 1. About 1 million customers of the Auto Club are expected to see an average reduction of $65 in their annual car-insurance premiums.
“This is the fourth auto-rate reduction over the past nine years, collectively saving policyholders over $380 million,” said Robert Bouttier, chief executive of the Auto Club, who is based in OC.
Bouttier took the top post of the organization about a year ago, following the retirement of Thomas McKernan, who remains chairman of the Auto Club.
The Auto Club is the largest member of the American Automobile Association federation of motor clubs, with about 6 million members overall. It provides other services, such as life insurance, homeowners insurance and travel services.