These companies raised rates for some customers 19.9% and 14.9%, respectively.
A total of 32 companies were approved for auto insurance rate changes effective in October in New York. In aggregate, the insurance companies estimated a $43.5 million increase in written premiums, with over 2.3 million drivers impacted. Assuming the increases were evenly spread, each affected driver in New York would pay $18.55 more in premiums a year.
Amica and Ameriprise led the pack of the 32 carriers, with the highest overall rate impacts of 19.9% and 14.9%, respectively. At the other end of the spectrum, GEICO and Preferred Mutual were approved for rate decreases for their customers, although the magnitude was very small: -0.6% and -0.1%. The average rate change across the 32 insurers we surveyed was 5.8% for October.
|Insurance Company||Written Premium Change ($000)||% Difference||Policyholders Affected|
|Amica P&C Ins Co||$1,155||19.9%||3,566|
|Ameriprise Ins Co||$3,502||14.9%||9,724|
|Utica Mutual Ins Co||$317||11.9%||1,678|
|Utica National Ins Co of Texas||$1,616||11.6%||8,066|
|Country-Wide Ins Co||$19,068||10.7%||55,967|
|Maidstone Ins Co||$2,110||9.9%||9,309|
|Cincinnati Ins Co||$1,382||9.9%||6,121|
|CSAA General Ins Co||$1,215||9.9%||9,660|
|Maidstone Ins Co||$209||9.2%||998|
|Amica Mutual Ins Co||$7,343||8.7%||47,498|
|Nationwide Affinity Ins Co of America||$12,980||8.5%||66,968|
|Old Dominion Ins Co||$1,774||8.4%||17,338|
|AIG Property Casualty Co||$1,641||6.3%||5,096|
|Citizens Ins Co of America||$86||5.0%||659|
|Electric Ins Co||$481||5.0%||6,250|
|Hanover Ins Co||$10||5.0%||67|
|Main Street America Protection Ins Co||$1,050||5.0%||15,608|
|Massachusetts Bay Ins Co||$44||5.0%||356|
|Mercury Casualty Co||$627||5.0%||8,574|
|Utica National Ins Co of Texas||$778||5.0%||9,317|
|Utica Mutual Ins Co||$184||4.8%||2,935|
|Nationwide Ins Co of America||$2,018||3.4%||24,354|
|Esurance P&C Ins Co||$568||2.5%||11,430|
|Metropolitan P&C Ins Co||$267||1.0%||19,509|
|Metropolitan Casualty Ins Co||$434||0.8%||25,869|
|State Farm Fire and Casualty Co||$174||0.1%||69,441|
|State Farm Mutual Automobile Ins Co||$1,567||0.1%||1,196,866|
|Metropolitan Group P&C Ins Co||$1||0.0%||77|
|Pacific Employers Ins Co||$0||0.0%||3,630|
|Preferred Mutual Ins Co||-$32||-0.1%||47,318|
|GEICO General Ins Co||-$14,913||-0.6%||537,206|
|Government Employees Ins Co||-$4,115||-0.6%||125,535|
Amica Property & Casualty Insurance Company submitted its rate filing to the New York Department of Financial Services at the end of last year and obtained approval in June 2018. Changes were effective Oct. 1, 2018, for its new and existing policyholders in the Empire State. The new increase is expected to span 0.2% to 39.1% across the roughly 3,500 policyholders impacted, for an average of $324 per policy.
Not all news was bad, however. The company implemented more generous discounts for some of its policyholders.
Amica added a new 9% discount for customers with auto, home and umbrella insurance with Amica. New York customers who qualify for this discount can get an additional 3% off (for a total of 12%) if they also have two life insurance policies with Amica. Additionally, Amica introduced a new 3% discount for prospective customers who own a house or condo that is currently insured with competitors. Should you have auto and homeowners insurance in New York with Amica, that discount increases to 8%.
The company also raised its Paid-in-Full discount from 2% to 4% to further incentivize customers to abandon their monthly payment plans. The last discount news of note was Amica’s revision of its definition of Good Student Discount. It replaced “at least 16 years of age” with “a licensed driver.” Rate tables show the discounts beginning for 17-year-old drivers, which means that 16-year-old licensed drivers may no longer qualify.
The New York Department of Financial Services also clarified in this rate filing that Amica had to re-underwrite customers based on credit reports if requested within a 36-month period. The insurer had previously noted it would re-underwrite every three years. The timeline for this implementation is under discussion. We’d highly recommend any customers with improving credit to request that updated scores be factored into their new rates. If other base rates or circumstances haven’t changed, this might save customers money on their auto insurance costs.
Ameriprise Insurance Company increases will be rolled out for both new business and existing New York customers renewing their policies on Nov. 4, 2018. In their actuarial memorandum, the car insurance company states that it is increasing “present rates to pay for our best estimate of losses and expenses, including a reasonable profit margin.” It also notes that profitability for its program is eroding rapidly, and itâs hoping the program will improve performance and increase its existing market share.
Ameriprise calculates that its customers will see their base rates increase anywhere from 2.9% to 18.1% and generate $3.5 million more in additional premium costs. Most of the increase is to its base rate for PIP in New York, which has traditionally been fraught with high fraud rates. Its last increase was effective Oct. 29, 2017, for 15.2%.
Rate changes were more moderate across the largest 10 auto insurance companies in New York, which account for 88% of the market. As of October year to date, rates increased by 3.1% across these groups. Liberty Mutual ranked as the company with the highest overall weighted change, while State Farm bucked the trend and registered a 3.4% decrease this year.
|Size Rank||Company||Direct Written Premiums in 2017 ($mm)||Rate Change % (Year-to-date)|
|1||Berkshire Hathaway Group||$4,234||5.9%|
|2||Allstate Insurance Group||$1,844||1.4%|
|3||State Farm Group||$1,758||-3.4%|
|5||Liberty Mutual Group||$731||9.8%|
|7||United Services Automobile Association Group||$392||4.9%|
|8||NYCM Insurance Group||$327||5.1%|
|9||Nationwide Corporation Group||$303||0.5%|
|10||AmTrust NGH Group||$292||4.4%|
|Top 10 Groups||$11,695||3.1%|