Thank you for your continued support of Frankenmuth Insurance.  We are off to a good start this year, and we appreciate everything you are doing.  As you know, personal lines auto continues to challenge our profitability goals especially when considering increased medical costs.  Our goals are to achieve long-term profitability and to have stable renewal pricing.  To achieve these goals, we must maintain a disciplined approach in how we manage the auto line of business. 

Effective July 1, 2013, we will be adjusting our overall rates for Michigan auto by 4.2%.  You will find this overall increase is made up of various changes by coverage, territory modifications, and other revisions.  For example: 

·         Comprehensive / Collision Deductible Factors:  We reduced pricing on higher comprehensive and collision deductibles while taking a slight increase on lower deducible options. 

·         Extended Transportation Expense Coverage:  The charge for this coverage is being increased approximately 10%.  The $20 / $600 limit is still included, free of charge, when comprehensive or collision coverage is written on a vehicle. 

·         MCCA:  The annual assessment is being increased to $190. 

Please keep in mind renewal pricing will vary based on territory adjustments. 

If you have any questions regarding this upcoming adjustment, please contact your Personal Lines Field Manager, Underwriter, or me.  

Thanks again for thinking of Frankenmuth Insurance.  We appreciate the partnership we have with you.