The U.S. private auto insurance hard market solidified even more in 2023 as each of the 10 largest underwriters raised their premium rates by double digits, compounding substantial hikes in 2022, according to S&P Global Market Intelligence’s RateWatch application.
For the majority of the top players, their 2023 effective rate increase was higher than its prior-year calculated change. Farmers Insurance Group of Cos.’s calculated weighted average rate increase of 17.6% was the highest among the nation’s 10 largest private auto insurers. The California-based insurer’s large 2023 rise in rates was about 3 percentage points higher than the 14.5% effective rate change in 2022.
Overall, Farmers Insurance raised its private auto rates by double digits in 43 states in 2023. The calculated weighted average increase of 30.4% across all of its units in Nebraska was the highest for the company. Among the states reflecting an effective rate change below 10%, North Carolina was the lowest at 1.8%. The other states were New Jersey, Vermont and Colorado at 9.6%, 9.2% and 8.6%, respectively.
The insurer did not have rate change requests in Alaska, the District of Columbia or Hawaii during the most recent full year.
