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Vol. 13 / Issue 6 / March 2024
REGIONAL NEWS
Farmers Leads Insurers’ Rate Hikes Script Sign Showcases Talents of Ohio with 17.6% Increase Farmers Insurance Group of Cos. raised its private auto insurance rates by a weighted average of 17.6% across 43 states in 2023, outpacing the rate hikes of its competitors but part of the broader trend in the industry, where double-digit increases have become the new norm.
states like New Jersey, Vermont and Colorado experiencing increases below 10%. This pattern of substantial rate hikes was not unique to Farmers Insurance. State Farm Mutual Automobile Insurance Co., another industry giant, reported a 16.0%
Students
recently completed a Wickliffe script sign, modeled after the popular Cleveland script signs located throughout the city. Students in the welding and auto According to Auburn Career collision repair programs at Auburn Center, the sign was painted white, Career Center in Concord Twp., OH, and it will be able to change colors when lit up. “Expertly designed and crafted by our welding students and painted by the Automotive Collision Repair program, this sign showcases the amazing talent of our students,” the career center said in a statement. The 18.5-foot-long sign’s letters are 4 feet high, and it This photo on Auburn Career Center’s Facebook is made of 2,000 pounds of By Marah Morrison
The News-Herald
page shows the completed Wickliffe sign.
l CONTINUED ON PAGE 17
REGIONAL NEWS
According to S&P Global Market Intelligence’s RateWatch, not only did Farmers Insurance lead this surge, but all 10 of the top auto insurers in the U.S. also imposed double-digit increases throughout the year, a shift from the more moderate rate changes observed between 2018 and 2021. For Farmers Insurance, the 2023 rise was approximately 3 percentage points higher than its 14.5% rate change in 2022. Nebraska witnessed the company’s highest increase at a weighted average of 30.4%. In contrast, North Carolina had the smallest rate hike at 1.8%, with other
weighted average rate increase in 2023. Similarly, Berkshire Hathaway Inc.’s GEICO Corp., despite having the lowest effective rate change among the top insurers at 10.1% in 2023, had experienced the previous year’s highest at 17.2%. The industry-wide trend of escalating rates was further evidenced by the nationwide effective rate change. In 2023, 43 states and Washington, D.C., reported an effective rate change greater than 10%, leading to a national average increase of 14.0%—a significant jump l CONTINUED ON PAGE 10
Illinois Car Insurance Rates Soar Over $1.25 Billion in 2023 Illinois drivers were hit with a significant increase in car insurance rates, surpassing $1.25 billion in 2023—the second year in a row where rate hikes exceeded $1 billion dollars. According to a recent analysis by the Illinois PIRG Education Fund, the 10 largest car insurance companies, which represent 81% of the state’s market, were responsible for the increase. When including smaller companies, the overall increase for Illinois drivers
Recent hikes follow a period where insurers reportedly overcharged customers during the first year of the COVID-19 pandemic. l CONTINUED ON PAGE 16
INSIDE THIS ISSUE 6
Columnist Mike Anderson: How to Ensure You – and Your Techs – Have Adequate Business Insurance Coverage
14
Columnist Abby Andrews: Collision Repair Industry to Be Influenced by Supply Chain, Vehicle Complexity in 2024
8
Columnist Stacey Phillips Ronak: CES 2024 Unveils Future of
12
Columnist John Yoswick: Mitchell Joins CCC, Audatex in Giving
Transportation Technology
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