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Vol. 15 / Issue 1 / March 2024 REGIONAL NEWS
Farmers Leads Insurers’ Rate Hikes Car ADAS Solutions Announces New 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%
Florida Licensee
Car ADAS Solutions announced the addition of ADAS Calibrations of Florida. Owned by Bea Bruno, the company recently opened a location in Rivera Beach, FL, on Nov. 5, 2023; a second facility is being constructed in Kissimmee. The company’s territory extends from Orlando to North Fort Lauderdale. Plans include opening four additional locations by the end of the first quarter of 2024, including one in Pompano Beach. Prior to owning the calibration centers, Bea’s husband, Mark Bruno, owned Fender Mender Auto Body in South Florida for 20 years before selling it to Classic Collision in 2020. “It was our absolute pleasure working with Bea and Mark, who I have
known for many years and share the company’s same vision of ‘Making the world a safer place to drive,’” said Kevin Caruso, COO of Car ADAS Solutions. “With their experience and the high
ADAS Calibrations of Florida is now educating body shops about the importance of calibration. l CONTINUED ON PAGE 14
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
Virginia Bill Could Lead To 19% Auto Insurance Rate Hike In Virginia, Senate Bill 256 recently advanced through the Senate Committee on Commerce & Labor, threatening to propel auto insurance costs to new heights in Virginia. Opponents of the bill, which encourages litigation when an insured individual seeks coverage from their own carrier due to another driver’s inadequate coverage, say it could introduce additional financial strain by fostering an environment ripe for litigation.
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According to a 2022 independent actuarial study, similar legislative efforts have previously predicted a 19% surge in premiums for underinsured/ uninsured motorist (UM/UIM) coverage in Virginia. However, Senate Bill 256 proposes even more extensive measures than its predecessors, hinting at potentially steeper increases in annual auto insurance premiums. “This harmful bill could result in higher auto insurance costs for consumers at time when many can
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INSIDE THIS ISSUE 6
Columnist Mike Anderson: How to Ensure You -- and Your Techs -Have Adequate Business Insurance Coverage
16
Columnist Abby Andrews: Collision Repair Industry to Be Influenced by Supply Chain, Vehicle Complexity in 2024
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Columnist Stacey Phillips Ronak: CES 2024 Unveils Future of
12
Columnist John Yoswick: Mitchell Joins CCC, Audatex in Giving
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