"2007 will be a banner year for Safeco's California customers," said Tim Mikolajewski, general manager of Safeco Insurance operations in California. "We're delivering home owners better products and better pricing across the board. Drivers, renters and business owners will find improvements under way across all our product lines."

Safeco has cut home insurance rates an average of 20 percent statewide. Regional rate reductions will range from 5 percent to 38 percent. Customers who have newer homes are eligible for other substantial discounts.

New customers will be able to immediately take advantage of new rates, and existing customers will see rates go down when they renew their current policy.

In addition to the statewide home insurance rate reductions, the company:

• Has cut motorcycle insurance rates by 6 percent statewide, compared to 2006 levels.
• Is providing significant discounts for property owners and renters who
  also purchase auto insurance from Safeco. Customers save money on their auto insurance as well as their home, condo or rental policy.
  Is reducing business insurance prices for its commercial property,
  general liability, commercial auto and workers compensation insurance products.
• Rate reductions in those product lines range from 6 to 17 percent, on average, compared to 2006.

Safeco has been able to reduce rates due to improvements in productivity, combined with declining loss trends in many product lines, Mikolajewski said.

Along with pricing improvements, Safeco expects to launch new home, auto and commercial product improvements in California in 2007 that will allow customers to extend their coverage, providing extra protection for emergencies or disasters.

Safeco insures nearly 300,000 home owners, renters, drivers and business owners in California. Approximately 1,000 licensed independent insurance agencies sell the company's products statewide.

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