MO Auto Refreshes Program with new Enhancements
United Home is committed to providing a competitive, stable auto product to meet our customer and agent needs. To continue to profitably grow this program, United Home will be implementing a rate change.
• Companion Discount has increased by 5% overall
• Advance Quote Discount Revision
o Higher Discounts for quoting before the effective date
o Will taper off over 4 policy terms instead of 1 causing less rate disruption
• Northern MO and better performing zip codes will see a decrease in rate
Revision details and overall impact on your clients
Average monoline business change: +7.5%
Average companion business change: +3.4%
Average monoline monthly dollar change: $9.21
Average companion monthly dollar change: $3.72
Reasons for this rate revision
• Continuation of elevated loss trends in the auto industry as a whole driving rate need.
• More miles driven; leading to increased frequency of accidents and higher claims severity.
• Distracted driving is on the rise, causing increased fatalities in crashes and higher accident rates.
• Medical costs are growing exponentially, affecting the amount paid on claims.
• Missouri legal environment continues to accommodate to plaintiff side, leading to higher defense/loss costs
• Unlisted household members driving having accidents
Tips to discuss rate changes at renewal
• Many UHIC agents see better retention by calling heavily impacted customers and doing an account review while talking them through the change.
• Because the cumulative impact of pricing changes on an individual customer can be disruptive, UHIC will stabilize rates at renewal to moderate customer impacts from year to year, improving the overall customer experience.
• Any new business policies will need to be issued prior to 9/1/2018, or they will be moved onto the new rate structure