U.S. states employ a variety of rate regulation mechanisms, including prior approval, modified prior approval, file and use as well as use and file. Some states do not require explicit regulatory approval prior to insurers using new rates. This analysis is based on when rate filings are "disposed" by state regulators and does not take into account when those new rates became effective for new and renewal businesses. In some instances, a new rate may have been in effect prior to the month the regulator approved the filing.
Rate hikes for the two largest private auto insurers in the U.S. are expected to increase their premiums by more than $1 billion, according to an S&P Global Market Intelligence analysis of rate filings approved during the third quarter of 2022.
GEICO, State Farm increases rates
GEICO Corp. continued increasing personal auto rates during the third quarter. Subsidiaries of the group received approval for 105 rate hikes, which is expected to increase the overall premiums by $1.57 billion. Nearly 15%, or $229.5 million, comes from three rate increases New York regulators approved.
State Farm Mutual Automobile Insurance Co. is expected to see the second-largest increase of $1.31 billion from 44 rate hikes across 22 states.
In addition, the top three rate hikes approved during the quarter all belonged to State Farm. Of these rate increases, the most significant in terms of premium change was the 6.4% rate hike approved by Texas regulators. That rate increase alone could add $213.8 million to the group's cumulative premiums. The rate hike went into effect June 20 for both new and renewal businesses.
The Allstate Corp. also increased premiums during the third quarter. The group received approval for 82 rate hikes, which are expected to increase the its overall premiums by $797.7 million. Liberty Mutual Holding Co. Inc. also expects an overall premium change of more than half a billion. From 163 rate hike approvals, the group is expected to see overall premiums rise by $525.5 million.
 | * Learn more about underwriting profitability for auto insurtechs * Find out who were the top personal auto insurers of Q2. |
Progressive tops decrease chart
The Progressive Corp. received approvals for 32 rate hikes, which are expected to increase the group's overall premiums by $471.3 million. The group also managed to obtain approval for eight rate decreases. The decreases are expected to reduce overall premiums by $6.3 million, the largest decrease by any group during the quarter.
