Less than a month after Farmers Direct Insurance filed for a hefty rate increase on West Virginia auto liability policies, Progressive has followed suit with an almost identical request.
The West Virginia insurance commissioner posted a bulletin Tuesday, noting that Progressive Classic Insurance Co. is asking for a 19.78% average increase in rates, affecting more than 31,500 motorists. In December, Farmers Direct Property and Casualty Insurance Co. requested a 19.9% average increase.
The filings are the latest indication that auto and other property insurance costs and premiums are on the rise around the country. MarketScout reported this week that auto insurance rates climbed by 7.3%, nationally, for the fourth quarter of 2023, just slightly behind property rates. Over the last decade, car insurance has risen by 19% nationwide, according to the U.S. Bureau of Labor Statistics.
Insurers have said that inflation, car thefts and a rise in accidents, claims severity and fraud have contributed to the need for higher premiums. The average cost per private passenger auto claim in the U.S. increased 16% in 2022 year over year, after rising by 11% in 2021, AM Best has reported. The average defense and cost containment expense increased by 29% and adjusting and other expenses increased by 18%.
The West Virginia commissioner’s office is now accepting public comment on the proposed increases. Comments on the Farmers rate filing will be accepted until Jan. 16. Comments on the Progressive rate will be accepted through Feb. 8.
Comments can be mailed to: West Virginia Office of Insurance Commissioner, Rates & Forms, P.O. Box 50540, Charleston, WV 25305-0540. Mail should be marked “Re: Liability Increase.”
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