The request is still pending and awaiting approval--or rejection--from the state's insurance regulators. They may also ask the company to amend parts of their request. If approved without amendment, changes will go into effect for both renewal and new business on November 1st of this year.
What Amica Policyholders Should Expect
The 12.7% increase is an average and some customers can see their rates jump up by as much as 32% or not change at all. According to the filing however, Amica predicts only around 2% of policyholders will experience an increase greater than 20%. The filing does not indicate the company will implement any sort of rate capping for existing or new customers to prevent too high an increase for an individual customer. If you are one of the 82,000 customers to be affected, you will start to see the rate increase anytime you renew your policy after November 1st.
There is the possibility that the Texas Department of Insurance will disapprove of Amica's request or ask that they change certain parts. In the past six months there have been over 175 filings submitted to the Texas Department of Insurance regarding rate increases, as well as decreases. Many are still pending, such as GEICO's 10% increase request, which was submitted back in early April. Amica customer's should not be alarmed as of yet. Any delays in approving of the hike would push back the effective date later than November 1st.
Cost of Rate Change
The current filing is expected to add $19,225,000 in written premiums from the hikes imposed on the 82,000 policy holder. On average, the policies for those affected will roughly be $234 more expensive if the increase in its current form is enacted. The current average rate for the affected customers is $1,843 per policy.
Auto insurers asking to raise their rates has become common place in the past few years. Across all states and insurers auto insurance has become roughly 22% more expensive since 2011. In Texas, rates have risen slightly above more, with the state's major insurance groups imposing 28% increases in the same time period. The rate change is sure to affect how the state ranks among the rest of the country for cheap home insurance rates.