The rate reduction comes because Northern California has seen a decrease in catastrophes over the last few years. The fire near Redding earlier this month destroyed 80 homes, but overall disasters like it have declined and that's meant the total amount of losses from claims has decreased as well.
Insurance rates are regulated by California and must be approved by the California Department of Insurance.
All AAA home insurance customers north of Fresno to the California-Oregon border will see an average savings of $100. The total savings to AAA customers will be $40 million.
New rates go into effect on Dec. 1, just in time for the holidays.