The rate change process and the amount of premium increase approved differs in each state.Ĭompanies then tapped the brakes and started limiting agents to no more than two to five new policyholders a month, D’Arelli said, adding that some insurers were going as far as disciplining agents for exceeding their quota.
It reported that the average increase for private auto insurance was 11% in the U.S. are “racing to increase premium rates as they seek to offset historically poor underwriting results,” which reflect the difference between premiums collected and claims paid. “That really brought things to this fever pitch,” he said.Īccording to S&P Global Market Intelligence, private auto insurers across the U.S. Nevertheless, D’Arelli said, by the time the rate-approval process was completed, the increases did not keep up with the rise in costs in the current economy. The companies complained they were losing money despite being profitable as recently as 2022, according to Department of Insurance market share data.Īt the tail end of 2022 and the beginning of 2023, Geico, Mercury Insurance, Allstate and several other insurers were approved for 6.9% increases, and some smaller insurers got larger hikes.
