NH Officials: No Complaints Received over Recent Rate Revision

New Hampshire insurance regulators say they have gotten no consumer complaints about a recent increase in overall rates for State Farm auto policyholders in the state.

State Farm raised its overall rate level for its Granite State customers by an average of 0.2 percent as of Aug. 9.

David Withers, a property-casualty actuary with the state Insurance Department, said regulators have received one question related to the increase, but it involved a discrepancy between a quoted premium and an actual premium.

There have been “no complaints received at our department about this revision,” Withers said in an email. “The increase was approved by our department.”

Douglas Nadeau, a regional spokesman for State Farm, said not all types of coverage have increased in cost. Premiums for collision and comprehensive coverages were expected to drop for most customers, while medical payments coverage has gone down in price for some policyholders and has risen for others.

“This was a slight rate change,” Nadeau said in an email. “For customers, overall premium changes will vary depending on factors such as the coverages they carry, the discounts for which they qualify, where they live, the kind of car insured, who drives it and how much it is driven.”

The New Hampshire increase went into effect not long before State Farm implemented overall rate cuts in other states, including Pennsylvania, Georgia and Alabama. Officials said the company has seen a decrease in the size and frequency of damage claims in those states and wanted to pass the savings along to customers.

The insurer announced this week it is cutting its overall rates in Pennsylvania by an average of 1.3 percent. That change, which takes effect Dec. 26, is expected to save customers throughout the state a total of $16.5 million.

State Farm slashed overall rates for customers in Alabama by an average of 2 percent. That adjustment, which took effect Nov. 21, is expected to save policyholders statewide more than $10 million a year.

The company also cut its rates for Georgia auto insurance by 2.2 percent on average as of last week, a move that officials say will mean $23 million in annual savings statewide.

New Hampshire is the only state in the nation that does not require motorists to carry auto coverage, but they must be able to prove that they have enough funds to meet state financial responsibility requirements in the event they cause an accident.

Those who buy policies must carry enough liability coverage to pay for damages of up to $25,000 for bodily injury to one person, up to $50,000 per accident and up to $25,000 for property damage caused by a policyholder. They must also carry medical payments and uninsured/underinsured motorist coverages.

 

About Matthew Morisset
Matthew Morisset is a proud alumnus of the University of Redlands, where he obtained a degree in English Literature. Utilizing his passion for analysis and writing, Matthew looks for important trends in the auto insurance industry and their implications for consumers and the market as a whole.

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