Q1 2019 Rate Increases Coming for Allied Insurance Customers in Michigan

Allied Insurance is raising their rates in Michigan to start 2019
Car Wreck

Starting on February 26, 2019, Allied Property and Casualty Insurance will be looking to raise their rates in The Great Lake State by a proposed 8.1% on average for insured Allied customers. This scheduled increase should be approved in the coming days. If you’re already an Allied insured driver, you’ll have until March 26, 2019 until your rates will change.

The impact of Allied’s proposed rate adjustment

Allied’s Q1 2019 rate change proposal is slated to affect 7,759 current policyholders in Michigan. The additional premium that the insurer expects to accrue is slightly over $2 million.

In terms of what coverages will makeup the $2,026,395, we’ve provided a table to showcase the details:

Coverage$ Change% Change
Bodily Injury$67,8133.0%
Property Damage-$1070.0%
PIP Coverage$1,629,81914.0%
Comprehensive-$2710.0%
Collision$328,6415.0%
UMBI$4940.2%
UIMBI-$940.0%
Limited Property Damage$490.0%
PPI Coverage$510.0%

It’s also helpful to know that these adjustments are never applied evenly. At the high end, 18 customers will see rate increases between 20 and 25% while one lucky policyholder will even experience a cost reduction of 14.7%. We suggest that customers check in directly with Allied to confirm what their personal rate impact will be.

How Allied’s rates stack up

We looked at several other insurers who are looking to raise their car insurance rates in Michigan over the next 90+ days. Of this group, Allied sat squarely in the middle of the pack with companies like Farmers Insurance proposing smaller raises of 6% and IDS Insurance asking to increase rates by over 11%.

In general, Michigan drivers have the unfortunate distinction of the highest auto insurance premiums in the country on average ($1,600 per year). This rate is a staggering 70% higher than the average in other states across the country ($941 per year).

Recent rate change history

Since the beginning of 2016, Allied Property and Casualty Insurance have made 5 other rate increase that added up to 36% over this timeframe. This most recent proposal of 8.1% is slightly higher than their average rate increase of 7.2% in the last 3 years. Here's how these rate increases stacked up:

Effective DateIncrease
Feb 20165.0%
Aug 20166.0%
Feb 20175.0%
Sept 20179.9%
Sept 201810.4%
Brian Quinn

Brian is a ValuePenguin Co-Founder. He previously worked in the financial services industry as an Associate at NASDAQ OMX and a Risk Analyst at Avenue Capital Group.

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