An agreement reached with the insurer will result in an average rate reduction of 12-point-six percent and result in average savings of 100 dollars a year.
Jones says 85 percent of State Farm policy holders will see their premiums either decrease or remain the same.
"Given the impact that the tight economy has had on California families and their budgets, this rate reduction will no doubt be welcome news and help to alleviate many tight circumstances that families find themselves in."
Los Angeles and San Diego policy holders will see about a 12-percent rate decrease. Sacramento will see a 21 percent decrease. And San Diego will see an 8 percent drop.
State Farm is the largest writer of homeowner's insurance in California. The rate reduction is effective for renewals beginning April 15th.