Three major auto insurance companies in Maryland have filed for rate changes. The changes will affect companies associated with Progressive, Chubb and USAA.
Two of the three major companies listed above are top companies in the Maryland auto insurance market. As of 2016, USAA ranked fifth in the state with $368 million direct written premiums. Progressive is only a few spots behind, at seventh, with around $280 million direct written premiums.
Progressive Insurance Company proposed rate impacts
Progressive's rate changes have not yet been approved. The changes would affect policyholders in its recreational vehicle insurance program.
The filing would affect five companies in the Progressive family, Progressive Advanced Insurance Company, Progressive American Insurance Company, Progressive Classic Insurance Company, Progressive Select Insurance Company, and Progressive Specialty Insurance Company. The pending rate changes per company can be found below:
|Affected policyholders||Average increase ($)||Overall rate impact (%)||Minimum change (%)||Maximum change (%)|
|Progressive Advanced Insurance Company||459||$48||9.3%||0.0%||13.0%|
|Progressive American Insurance Company||442||$52||9.6%||0.0%||13.3%|
|Progressive Classic Insurance Company||1,070||$59||9.3%||0.0%||13.2%|
|Progressive Select Insurance Company||2,639||$49||10.7%||0.0%||13.6%|
|Progressive Specialty Insurance Company||2,154||$52||10.5%||0.0%||13.0%|
These increases will also affect motor home owners with recreational vehicle policies. Below, you can find a chart detailing the possible rate changes, and the estimated distribution of premium impact for the motor homes in scope.
|Rate change range (%)||Percent (%)|
|-15 to -10||0.0%|
|-10 to -5||0.0%|
|-5 to 0||0.0%|
|0 to 0||8.8%|
|0 to 5||1.8%|
|5 to 10||88.6%|
|10 to 15||0.8%|
Rate changes for Chubb National Insurance Company
Chubb Insurance Company has also filed for rate changes. These changes, if approved, would affect five of its family companies. These companies include: Chubb National Insurance Company, Federal National Insurance Company, Pacific Indemnity Company, and Vigilant Insurance Company. The table below details the number of policyholders who will be affected, the average rate impact in percent, and the minimum and maximum proposed changes in percents.
|Affected policyholders||Overall rate impact||Min change||Max change|
|Chubb National Insurance Company||1,211||7.0%||-9.4%||101.2%|
|Federal Insurance Company||159||9.8%||7.0%||17.0%|
|Great Northern Insurance Company||823||8.8%||5.3%||13.6%|
|Pacific indemnity Company||64||8.8%||4.5%||16.9%|
|Vigilant Insurance Company||102||9.0%||4.1%||16.0%|
Chubb has proposed increases for various coverages. Most of the impacts are for physical damages with the subtotal coming out to be 10.3%. In comparison, Liability coverages only subtotal 4.6%.
|Private Passenger Vehicles (%)|
|Combined Single Limit (CSL) Liability||5.4%|
|Uninsured Motorist (UM)||2.9%|
|Personal Injury Protection (PIP)||-1.3%|
|Physical Damage Average||10.3%|
United Services Automobile Association approved rate increases
USAA is the only company out of the three listed that has been approved for rate changes. These changes will affect USAA and its affiliate companies, which have been listed below with their rate changes. These changes will take effect for new policyholders starting on February 16, 2018. Policyholders who choose to renew will be affected on or after May 1, 2018.
|Affiliate||Policyholders affected||Overall rate impact||Min change||Max change|
|Garrison Property and Casualty Insurance Company||22,573||3.7%||1.9%||6%|
|United Services Automobile Association||83,655||3.1%||-0.4%||8.9%|
|USAA Casualty Insurance Company||70,881||7.1%||2.9%||8.6%|
|USAA General Indemnity Company||40,742||15.6%||11.6%||19.0%|
Along with the premium rate changes, USAA has also altered both its points and accident surcharges programs. It has removed surcharges for policyholders who have three or more claimed accidents. For example, a 30-year-old policyholder with three recent accidents on their record would have their surcharges go from 2.11 to 1.62. In percentage terms, this means that the driver would be paying 23% less than before. The company has also removed the increases for licenses with 11 or more points, meaning that a policyholder with 12 points will face the same increases as a policyholder with 10 points. For bodily injury premiums, this means a decrease around 6%.
Summary of rate changes for Maryland auto insurance companies
All 12 major companies in the state have been approved for rate changes. The changes will significantly impact the average rates paid in Maryland. Residents of Maryland can expect to pay $1,810 per year for their car insurance policy. The table below details the average rate increase per company.
|Company||Rate change (%)|
|Berkshire Hathaway Group||8.5%|
|State Farm Group||8.8%|
|Allstate Insurance Group||6.3%|
|Nationwide Corporation Group||12.6%|
|United Services Automobile Association Group||13.7%|
|Erie Insurance Group||7.5%|
|Liberty Mutual Group||4.5%|
|Hartford Fire & Casualty Group||4.0%|
|Farmers Insurance Group||12.3%|