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Germania is revising Auto and Property rates effective July 10, 2022, for new business and July 20, 2022, for renewal business.
Personal Auto Rate Change
The overall statewide average rate impact for Personal Auto is an estimated 9%. The changes for individual policies will vary based on the company, coverages selected, and other policy characteristics.
A rate increase is needed to address deteriorating profitability of the Personal Auto program. We have already implemented rate increases in 2022, so why is another increase needed?
There are several factors contributing to the need to implement a 9% rate increase:
- Claim Frequency: The occurrence of claims has increased as driving patterns continue to normalize after the pandemic. Texans are driving more and having accidents.
- Claims Severity: Auto repair shop costs continue to increase for vehicle parts and labor, new and used vehicle prices remain high, and delays in receiving parts has lengthened the claims process.
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Property Rate Change
The overall statewide average rate impact for Property is an estimated 3.5%. Rates will increase for dwellings, condos, manufactured homes, outbuildings, farm machinery, poultry houses, personal property, and irrigation equipment.
Timeline
The new rates are now available in the system for new business effective July 10, 2022, and later. Existing new business quotes with effective dates of July 10 or later will increase the next time the quote is touched. Premiums for policies already bound with effective dates on or after July 10 will be honored. New rates for renewals will be visible on the Renewals listing in GermaniaConnect 55 days in advance of the renewal effective date.
For general rating questions, please contact gpricing@germaniainsurance.com. For questions on a specific policy, please contact Underwriting at Ext. 1090, Option #3.
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