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Farmers, USAA hike private auto rates in August; State Farm makes cuts

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Farmers, USAA hike private auto rates in August; State Farm makes cuts

Subsidiaries of Farmers Insurance Group of Cos. received approvals for 15 rate increase requests in August which, when combined, could result in an increase of $25.6 million in its private-passenger auto business, according to an S&P Global Market Intelligence analysis.

One rate increase request approved for Farmers Texas County Mutual Insurance Co. was the most significant private auto rate hike during the month nationwide. It stands to boost the group's written premiums by $13.6 million. More than 361,000 policyholders in Texas will be impacted by the increase.

Four units of United Services Automobile Association received approvals for 11 rate hike requests across the U.S. during the month that could result in an aggregate increase of $15.9 million for the insurer.

On other side of the spectrum, a 3% rate reduction for market leader State Farm Mutual Automobile Insurance Co. in Tennessee may be the most noteworthy individual rate change regulators approved in August. The new rates are expected to go into effect on Sept. 30 on new and renewal basis; they could reduce State Farm's premiums written by $24.6 million.

This analysis includes 374 private auto rate filings approved in August, of which 137 were increases, 40 were decreases and the rest had no impact on calculated premiums.

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