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Vol. 42 / Issue 3 / March 2024 REGIONAL NEWS
Farmers Leads Insurers’ Rate Hikes Arizona Student is Too Young to Drive Yet 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%
Parlaying Love of Cars into Career Dream By JJ McCormack Yavapai College News
Kelsey Knight’s fascination with cars dates to sleepless nights as a toddler when she would awaken her father, curl up in his lap, and the pair would scroll through internet images of all manner of vehicles past and present. Today, cars fuel the 15-year-old and still-unlicensed driver’s dream of becoming a master mechanic and opening a repair shop catering to women. Knight achieved the first milestone in her career quest in the fall, earning her first ASE certification in Yavapai College’s ASE-accredited automotive program, for entry-level brakes. She plans to continue progressing in
YC’s automotive program through Mountain Institute Career and Technical Education District. A class in electrical systems is up next this semester. “I’ve always loved cars. They’re just so cool. I thought it was really cool that they’re so complicated,” she said about her unique and youthful interest sparked over time by first watching then helping her father maintain, repair and upgrade their family vehicles. On a recent weekend, Knight, who also is a dancer and violinist, invested a couple of hours helping her father replace the steering wheel in their Tesla. “It was really fun,” she said, adding that although electric cars l CONTINUED ON PAGE 13
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
Lucid Expands Arizona Plant for Electric SUV Production Lucid announced a major expansion of its U.S. Advanced Manufacturing Plant (AMP-1) in Arizona, in anticipation of the production of its new fully electric SUV, the Lucid Gravity. “The expansion of our manufacturing footprint in Arizona is a significant milestone for the company, as we prepare for the next phase of Lucid’s growth,” said Peter Rawlinson, CEO and CTO of Lucid. “Our expanded state-
of-the-art factory will allow us to continue to deliver our great cars to our customers around the world,
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INSIDE THIS ISSUE 4
Columnist Mike Anderson: How to Ensure You – and Your Techs – Have Adequate Business Insurance Coverage
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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
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Columnist John Yoswick: Mitchell Joins CCC, Audatex in Giving
Transportation Technology
Users Flexibility with Blend Formula
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