Customers of AAA car insurance in Northern California can rejoice, as Insurance Commissioner Steve Poizner has approved a 6.5% rate reduction for personal car insurance customers.

It’s not often that we see insurance rates actually go down, but customers in Northern California will enjoy an estimated saving of $106 per policy with total savings amounting to $100.5 million as a result of AAA’s rate cut that goes into effect on December 15, 2007.

AAA car insurance in Northern California is in the top 10 largest auto insurers in the state, insuring close to 1 million customers. The rate reduction will effect about half a million customers in the Bay Area and more than 150,000 customers in the Sacramento area.

AAA car insurance is proving profitability and customer service go hand in hand, becoming one of the first insurers in the state to fully comply with the new regulations. CSAA, GEICO and a handful of other insurers have also filed plans aimed at meeting the July 2008 deadline.

Drivers in Northern California will now have their rates based primarily on their driving record, number of miles driven and years of driving experience. Rates were previously heavily influenced by: marital status, gender and zip code, causing discrimination against drivers in rural and inner city areas.