While car insurance is more expensive than it used to be, PA says they blocked over $60M in premium increases

15 February 2024- Working for Pennsylvanians’ best interest, the Pennsylvania Insurance Department (PID) announced today that the Department blocked $64.3 million of personal auto premium increases from being implemented in Pennsylvania through its rate review processes in 2023.

PID has received a large volume of requests for rate increases in recent years, which the Department attributes largely to various inflationary factors, including increasing prices of vehicles and parts. In general, insurers are experiencing far higher losses than they were a few years ago and generally seek to reflect potential losses in proposed rates. As a standard practice, PID carefully reviews each request and often challenges them.

“Car insurance rates across the state, and in much of the country, are increasing to reflect inflationary costs, but PID remains committed to thorough reviews and has not – and will not – approve rates if they are excessive, inadequate or unfairly discriminatory,” said Pennsylvania Insurance Commissioner Michael Humphreys. “The Shapiro Administration is committed to getting things done for all Pennsylvanians – for PID, that means protecting consumers’ hard-earned money by blocking over $64 million in auto premium increases from being implemented in 2023. We will continue to make insurers justify every dollar in proposed new premium.”

PID reminds Pennsylvanians that there are several ways to save money on their auto insurance premiums:

  • Drive safely! Insurers use at-fault accidents and violations to rate you. 
  • Consider bundling your auto insurance policy with your home, condo owner or renter policy to receive a multi-policy credit.
  • Ask your insurer about other discounts they offer.  Ask them how they use annual mileage and miles driven daily to work or school for rating purposes. 
  • Consider enrolling in a telematics, or usage-based, insurance program that rates you based on your driving behavior, including characteristics such as how hard you brake and how often you use your phone while driving. Not only can you qualify for lower rate, but you may also become a safer driver.  But keep in mind that many of these programs will surcharge you if they consider you to not be a safe driver.
  • Talk to your agent or insurance company about optional coverages and consider what you need. You may be able to reduce limits and increase deductibles while still carrying enough insurance.
  • Review limited tort options with your agent or insurance company. Limited tort can save you 40% on a few major types of car insurance coverages – bodily injury liability, uninsured motorist coverage, underinsured motorist coverage, and first party benefits. Electing limited tort means giving up one’s right to sue for non-economic damages, such as pain and suffering, except in certain limited circumstances. 
  • Take a driver improvement course if you are 55 or older. Insurers are required to provide a 5% discount on your policy when all insureds named on the policy that are 55 or older take a driver improvement course that meets PennDOT’s standards.