Illinois Insurers Push Through Last Rate Changes of 2012

As December draws to a close, several rate changes went into effect this month in Illinois that will impact how much policyholders pay for their policies throughout the state.

The changes were reported to regulators in rate filings as averages, so the impact on Illinois auto insurance rates will vary from policyholder to policyholder based on their driving background. An increase stated in the rate filing may still mean that some policyholders will see a lower price tag on their future premiums.

All of the following changes are applicable to personal auto policies, unless noted.

The biggest upcoming change will be seen by policyholders who are insured through Mercury Insurance Company of Illinois. At the end of the month, the insurer will institute a 17 percent overall hike. The revision comprises a 27.9 percent increase in auto liability rates accompanied by a 1.4 percent decrease in physical damage rates.

Another sizable change recently took effect at Great Northern, where an average 12.7 percent increase in auto liability rates took effect on Dec. 10.

Policyholders at Chubb Indemnity and Chubb National also started seeing significantly higher rates starting Dec. 10. Both insurers raised auto liability rates by an average of about 13 percent while dropping physical damage rates by 0.7 percent.

Also on Dec. 10, Economy Preferred hiked its auto insurance liability rates by 7.5 percent and physical damage rates by 5.1 percent.

On Dec. 19, Penkin Insurance raised its renewal rates by 7.4 percent for auto liability policies and by 4.2 percent for physical damage policies.

Renewing customers with the VIP program at Farmers Automobile Insurance Association also began seeing adjusted rates on Dec. 19, when hikes of 1.6 percent on auto insurance liability rates and 1.7 percent on physical damage rates took effect. The insurer writes a relatively large amount of business in the state, reporting more than $75 million in annual premium volume.

Metropolitan Casualty, which reported a $58.6 million premium volume, put into place a 4.9 percent hike in auto liability rates and 2.9 percent hike in physical damage rates. The changes took effect Dec. 10.

GMAC Insurance Online hiked auto liability rates by 6 percent and physical damage rates by 6.4 percent for renewing customers. Those changes took effect on Dec. 1.

Direct Auto made changes to its physical damage rates, increasing it by 1 percent beginning Dec. 11 for renewing customers.

Madison Mutual’s rate changes took effect Dec. 1, increasing auto liability rates by 0.21 percent and physical damage rates by 1.4 percent.

About Charles Nguyen
Charles Nguyen is an enterprising journalist who reported for and the Desert Dispatch and was the editor in chief of the Guardian (the twice-weekly newspaper at the University of California, San Diego) before coming to Online Auto Insurance News.

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