Auto Insurance

Rate Changes for Progressive, Chubb and USAA Auto Insurance Companies in Maryland

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:

Affiliate company

Affected policyholdersAverage increase ($)Overall rate impact (%)Minimum change (%)Maximum change (%)
Progressive Advanced Insurance Company459$489.3%0.0%13.0%
Progressive American Insurance Company442$529.6%0.0%13.3%
Progressive Classic Insurance Company1,070$599.3%0.0%13.2%
Progressive Select Insurance Company2,639$4910.7%0.0%13.6%
Progressive Specialty Insurance Company2,154$5210.5%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 -100.0%
-10 to -50.0%
-5 to 00.0%
0 to 08.8%
0 to 51.8%
5 to 1088.6%
10 to 150.8%

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.

Affiliate

Affected policyholdersOverall rate impactMin changeMax change
Chubb National Insurance Company1,2117.0%-9.4%101.2%
Federal Insurance Company1599.8%7.0%17.0%
Great Northern Insurance Company8238.8%5.3%13.6%
Pacific indemnity Company648.8%4.5%16.9%
Vigilant Insurance Company1029.0%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%.

Coverage

Private Passenger Vehicles (%)
Combined Single Limit (CSL) Liability5.4%
Uninsured Motorist (UM)2.9%
Personal Injury Protection (PIP)-1.3%
Liability Average4.6%
Comprehensive8.8%
Collision10.7%
Physical Damage Average10.3%

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.

AffiliatePolicyholders affectedOverall rate impactMin changeMax change
Garrison Property and Casualty Insurance Company22,5733.7%1.9%6%
United Services Automobile Association83,6553.1%-0.4%8.9%
USAA Casualty Insurance Company70,8817.1%2.9%8.6%
USAA General Indemnity Company40,74215.6%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.

CompanyRate change (%)
Berkshire Hathaway Group8.5%
State Farm Group8.8%
Allstate Insurance Group6.3%
Nationwide Corporation Group12.6%
United Services Automobile Association Group13.7%
Erie Insurance Group7.5%
Progressive Group0.2%
Liberty Mutual Group4.5%
Travelers Group4.0%
Hartford Fire & Casualty Group4.0%
Farmers Insurance Group12.3%
Katherine Ross

Katherine is a former Editorial Associate at ValuePenguin.