Thank you for your support and loyalty to Frankenmuth Insurance.  Our goals are to achieve consistent long-term profitability and to improve our overall product offering to you.  To achieve these goals, we must maintain a disciplined approach to our business and pricing. 

 

We want to advise you of auto and homeowner product revisions we are making effective June 1, 2013. 

 

Homeowner

We will be taking an overall rate adjustment of 8.6%.  This change is made up of a base rate increase and a change to our minimum premium.  Based on your feedback, we found our homeowner minimum pricing level not adequate in comparison to the rest of the marketplace. 

 

Homeowners Rules

The following homeowner underwriting rule changes have been made:

 

·         Seasonal Homes – In order for us to write seasonal homes we will now require the primary home to be written with Frankenmuth Insurance. 

·         Island Residences – Homes located on an island, inaccessible by bridge or other roadway, are ineligible.

·         Multiple Policy Discount – This discount is available to policyholders who insure their home and have a Business Auto policy with Frankenmuth Insurance.

Personal Auto

We will be taking an overall neutral change effective June 1, 2013 on personal auto.  Our goal is to improve our auto competitive position on a wider selection of the market and most importantly loss free accounts.  We have made a base rate adjustment of -6.1% and the following discount changes which make up the overall neutral rate change:

 

·         Loss History Discount – We are increasing the discount level for the 3 year and 5 year levels by 5%. 

·         Multi-Car Discount – We are decreasing our multi-car discount by 5%. 

·         Multi-Policy Discount – We are decreasing our multi-policy discount by 5%. 

·         Auto Rental Reimbursement – We slightly increased our pricing of auto rental reimbursement as part of this change. 

We sincerely appreciate your support in profitably growing your personal lines book of business with Frankenmuth Insurance.  If you have any questions, please feel free to contact your Personal Lines Underwriter or me.