Six Companies to Increase Rates in Michigan

Michigan rate change graphData recently made public by the Michigan Office of Financial and Insurance Regulation show six car insurance companies have already implemented or soon will be implementing rate hikes for some policyholders in the state.

Drivers searching for cheap car insurance in Michigan will be looking at a new playing field, with the highest percentage hikes at QBE Insurance Corporation, Merastar Insurance Company and Allstate Property and Casualty.

Merastar changed rates for new policies on March 5 and will institute a rate change for renewal policies on April 1 for 555 of its customers, signifying an average increase of $203.42 per policyholder and 11.4-percent rate increase overall. That percentage was the largest increase of all six companies announcing rate changes, but it will luckily effect the smallest pool of consumers.

Both new and renewal policies for 21,506 customers at QBE saw changes on March 15, representing a rate increase of a little over 10 percent and an average increase of $124.75 per policyholder.

Allstate Property and Casualty implemented rate increases for new policies on March 5 and will do the same for renewal policies on April 5. The company’s overall rate increase is almost 10 percent for 176,513 customers, the largest number of policyholders of all companies announcing rate changes, with the average increase per policyholder being $146.56. The company also writes the highest dollar amount of premiums of the six companies, at more than $261.3 million.

Other insurers reported smaller overall percentage hikes to rates in Michigan.

American Fellowship Mutual will be raising rates an average of $179.21 for 2,695 policyholders, representing an 8.5-percent hike. The changes take effect April 1 for both new and renewal policies.

At GEICO Indemnity Company, where 53,027 customers will see a 3.5-percent overall hike in rates and $38.70 average increase, the change will yield higher rates for some policyholders but lower rates for others. The changes took effect on Feb. 16 for new policies and will take effect on April 2 for renewal policies.

Changes at Allstate Insurance Company took effect March 5 for both new and renewal policies, with an overall percentage rate increase of 3 percent for 314,272 policyholders.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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