Three Nationwide Group companies are raising rates on thousands of Pennsylvania automobile policyholders to bring in a combined $31.9 million more in premiums, according to Michael Buck, senior associate editor, BestWeek.
Rates for auto policyholders of Nationwide Affinity Insurance Co. of America, Nationwide Insurance Co. of America and Nationwide Mutual Insurance Co. were scheduled to go up March 5. A spokeswoman for Nationwide said Nationwide Affinity has been receiving more severe claims than in the past. She did not have the reason for the other two rate increases immediately available.
“Claims severity versus frequency is the primary driver behind the need for a rate increase in Pennsylvania in bodily injury, property damage and medical care coverages,” Nationwide spokeswoman Nancy Smeltzer said in a written statement.
Rates for Nationwide Affinity private passenger auto will increase an average of 7.9 percent, which will impact about 202,300 policyholders and bring in $18 million more in premiums, according to Best’s State Rate Filings. Rates for Nationwide Mutual will increase an average of 1.9 percent, which will impact about 182,600 and bring in $5.8 million. Nationwide Insurance rates will go up an average of 6 percent, which will impact about 83,100 policyholders and bring in $7.9 million.
Nationwide is not the only company making changes in Pennsylvania that affect large chunks of policyholders. Two Erie Insurance Group companies are making rate changes that will impact a combined 840,000 policyholders, according to a rate filing. The increases will go into effect on April 1.
Have questions about your insurance coverage? Call E. R. Munro and Company at 877-376-8676 or visit our Web site at www.ermunro.com.