Progressive Insurance implements another round of rate hikes
Progressive Insurance implements another round of rate hikes | Insurance Business America
Insurance News
Progressive Insurance implements another round of rate hikes
It is the second price adjustment in the state this year
Insurance News
By
Mika Pangilinan
Progressive Insurance has announced another round of rate hikes for its customers in Illinois, increasing its auto insurance rates by 5% on average.
The adjustment will result in annual premium hikes ranging between $90 and $100, according to Crain’s Chicago Business, citing a filing disclosed by the Illinois Department of Insurance.
Earlier this year, the insurer increased rates by 4.6% for those purchasing through independent agents and 3% for policyholders buying online or via phone. As a result, average annual premiums have risen by $150 to $200 in 2023 alone.
Progressive spokesperson Ronald Davis said the company is continuously monitoring loss frequency and other changes to insurance costs to ensure that rates align with the level of risk.
“Our most recent rate adjustments are being driven by several factors including higher vehicle replacement costs, rising injury and repair costs and increased frequency,” Davis told Crain’s Chicago Business. “We’ll continue to assess our data and monitor trends in these areas and make adjustments to our pricing accordingly.”
CEO Tricia Griffith previously revealed Progressive’s plans to implement “aggressive rate increases” throughout 2023 to achieve desired underwriting margins amid inflationary pressures and rising costs.
Progressive is the third largest auto insurer in Illinois. It has seen a 26% increase in auto policies since early 2021, rising from 407,639 to 514,306, as reported by Crain’s Chicago Business.
Illinois’ largest auto insurer State Farm previously raised rates by over 12% in the state, while GEICO increased rates by 4.5%.
Meanwhile, Allstate increased rates in Illinois by 7.6% on average. It was also recently approved by state regulators to hike rates by 4% in California, with another nearly 40% increase still under consideration.
Unlike Illinois, California requires insurers to obtain regulatory approval before implementing rate changes.
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