With your partnership, our 2012 Personal Lines results are much improved. Thank you for your support and cooperation as we’ve worked together through a challenging period. As we strive toward long-term, consistent profitability, we must continue to adapt to an ever-changing market while realizing adequate rates in all of our Personal Lines products.
We want to provide you an overview of the changes we will implement effective January 1, 2013 to improve our competitive position and ensure future profitability.
Rate Changes
An overall rate change of 2.9% is being taken. This change includes base rate adjustments and the following additional changes:
Ø Mini-Tort: The premium for this coverage is increasing from $5 to $8. Remember, we increased Mini-Tort coverage from $500 to $1,000 effective 10/1/2012.
Ø Vehicle Age/ Symbol: An adjustment is being made to the vehicle age factors (liability and physical damage) and symbol factors, to improve our competitive position on newer vehicles and to gain additional rate on older vehicles.
Ø Loss History Discount: A 5% (3 Year) and 7.5% (5 Year) Loss Free Discount is being implemented for Bodily Injury and Personal Injury Protection coverages. This is a new discount for these coverages, and it will assist you in retaining your best customers.
Ø Miscellaneous Vehicles: Travel Trailer and Motorcycle rates will decrease to improve our overall competitive position. We’re making these adjustments based on competitive information we received directly from our agency partners.
Ø Territory Adjustments: Some fine-tuning of our territories will be implemented, causing some fluctuation in renewal pricing based on geographic area.
Rule Change:
Ø Experience Rating Surcharge Points: Two surcharge points will be assigned to any operator with a safety belt violation.
We sincerely appreciate your support in helping us improve our Personal Lines results. If you have any questions, please feel free to contact your Personal Lines Field Manager, Underwriter or me.
