HARRISBURG, PA — The Pennsylvania Insurance Department (PID) has announced that it prevented a whopping $64.3 million in personal auto premium increases from taking effect in 2023. The move is a significant one for Pennsylvania residents, as it reflects the state’s commitment to protecting consumers from excessive rate hikes.
In recent years, PID has seen a surge in requests for rate increases from insurance companies. These requests are largely attributed to inflationary factors, such as rising costs of vehicles and parts. Insurers are grappling with higher losses than before and are looking to offset these losses through increased premiums.
However, PID isn’t giving these rate hikes a free pass. Each request undergoes rigorous review, and if deemed excessive, inadequate, or unfairly discriminatory, it is challenged.
“Car insurance rates across the state, and in much of the country, are increasing to reflect inflationary costs,” said Pennsylvania Insurance Commissioner Michael Humphreys. “But PID remains committed to thorough reviews and has not – and will not – approve rates if they are excessive, inadequate or unfairly discriminatory.”
The blocking of over $64 million in auto premium increases is a testament to this commitment. As Humphreys noted, the Shapiro Administration is dedicated to working for all Pennsylvanians, and for PID, this means protecting consumers’ hard-earned money.
This news is particularly important given the current economic climate, with many households feeling the pinch of rising costs in various sectors. The decision by PID to block these rate hikes can help ease some of the financial burden for Pennsylvanian auto owners.
In addition to this protective measure, PID is also encouraging Pennsylvanians to explore ways to save money on their auto insurance premiums. Suggestions include safe driving to avoid at-fault accidents, bundling insurance policies for a multi-policy credit, and exploring various discounts offered by insurers.
The department also suggests considering telematics or usage-based insurance programs, which rate drivers based on their driving behavior. While these programs can potentially offer lower rates, they may also penalize unsafe driving habits.
Other money-saving tips include reviewing optional coverages to determine necessity, considering limited tort options, and for those aged 55 or older, taking a driver improvement course for a policy discount.
Through its rigorous review processes and commitment to consumer protection, PID continues to serve as a bulwark against unjust insurance premium hikes. In the face of rising costs in many areas of life, this action provides some financial relief for Pennsylvanians, demonstrating that their state government is actively working to safeguard their interests.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and Microsoft Start.