Last year, Ohio Personal Auto struggled to see loss ratio improvement, and ended 2018 with a loss ratio of 75.8%. This result was driven by increases in new auto losses, which were up 24%, as well as increases in severity with case incurred losses rising 33% versus the prior year.  

To help combat adverse trends of increasing frequency and severity, we will be taking a modest Personal Auto rate increase. 

Effective July 1, 2019, the rates, by coverage, will be adjusted as follows:

• Overall Change: +3.4%

o Liability: +4.6%

o Other Than Collision: +0.3%

o Collision: +4.5%

o Uninsured/Underinsured: +0.2%

In addition, other rating attributes will also be adjusted based on past loss experience, such as age of operators (40 – 59 years old), loss experience, loss history and loyalty discount factors. Depending on the rating attributes of the policy, you may see either an increase or decrease in premium at renewal.

We are confident these adjustments will provide us with the foundation for continued improvement in the year ahead. If you have any questions, please contact your Personal Lines field manager or underwriter.

Thank you for thinking of Frankenmuth Insurance.