Rate Changes Averaging 15.2% Approved for State Automobile Mutual Insurance Company in South Carolina for 2017-2018

State Automobile Mutual Insurance Company submitted a request to the South Carolina Bureau of Insurance to increase the premiums for its auto insurance customers in the state by an average of 15.2%.The filing was approved as of September 20, 2017.

The rate impact will have been enacted for current policyholders on or after November 20th, 2017, should they choose to renew.

State Automobile proposed rate impact

Premiums are estimated to increase for 4,939 policyholders in South Carolina by an average of $353 per policy. As with most increases, though, the impact will be spread unevenly, with some policyholders receiving increases lower than that figure and other receiving larger hikes. In percentage terms, the company reports the proposed rate changes will range 9.8% to 22.3%.

In its filing, State Automobile listed out the premium changes for different types of insurance. We have compiled the changes into the table below so that policyholders can see the rate changes in percent.

CoverageProposed Rate Change
Bodily Injury21%
Property Damage24%
Uninsured/Underinsured Motorists14%

Liability Total

20%
Collision4%
Comprehensive (Other Than)14%
Physical Damage8%

As of 2016, the company ranked 44th among auto insurance carriers who are active in the state. The South Carolina auto insurance market is heavily concentrated. State Farm, commands more of the market than any other carrier, holding 20.6% of all policies.

How these increases compare

These hikes are among the highest rate increases to go into effect for auto insurance in South Carolina in 2017. Among the 12 largest companies in the state, 10 have been approved for rate changes by regulators. The average increase in premiums arising from those decisions is 8.3%. Within the approved list, the largest hikes were for United Services AUtomobile Association Group (with an average increase of 17%); Nationwide Corporation Group (12.5% on average); and American Family Insurance Group (10.7% on average).

When compared to the rest of the U.S., car owners in South Carolina enjoy some of the cheapest auto insurance. Premiums are 12% less expensive than the average premiums for car owners in the country as a whole, with our sample South Carolina policyholder facing an average annual fee of $1,316 to insure their cars.

That annual tab translates into an average monthly cost of $110, which makes South Carolina the 15th cheapest state for auto insurance in the U.S. South Carolina's downstairs neighbor, Georgia, is on the more expensive end of the spectrum, with our sample driver paying an average of $183. However, to the north lies North Carolina, where car owners enjoy the 6th cheapest premiums in the nation, at only $88 per month on average for our benchmark car driver.

Policy changes for State Automobile's Customfit

State Automobile included tables detailing the breakdown of the rate increases in their CustomFit program. The table below shows the number of policies affected, the percent, and the rate change.

Rate Change Interval# of Policies Affected% of Policies Affected
$400-$1,96648610%
$300-$4004509.1%
$200-$30099220%
$100-$2001,99740%
$50-$10097120%
$0.01-$0431%

The five largest dollar increases in State Automobile's CustomFit program change

The policies experiencing the highest rate increases in State Automobile’s CustomFit program have 5+ vehicles insured. The largest increase forecasted on any single policy is neary $2,000, while the largest in percentage terms is 18%. The table below shows the five largest policies impacted.

Policy$ Change% ChangePolicy Characteristics
1$1,96615.9%5 vehicles
2$1,79415.5%7 vehicles
3$1,77515.9%5 vehicles
4$1,75717.7%5 vehicles
5$1,72314.9%5 vehicles
Katherine Ross

Katherine is a former Editorial Associate at ValuePenguin.

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