Shelter Mutual Insurance Announces Auto Premium Rate Reduction

Shelter Mutual Insurance is lowering rates for automobile insurance for the majority of policyholders. The rate reduction is due to fewer accidents and lower total miles driven by consumers during the COVID-19 pandemic. The amount of the overall reduction will be 5% for most of our customers; however, the size of the decrease for individual customers will vary based on policy coverages and the individual’s profile and loss experience.

Shelter sent 30% relief payments to customers for April and May when stay-at-home orders were in force and many businesses were closed. Although this rate reduction is related to the COVID crisis, it is not a relief payment. Because the Department of Insurance must approve rate reductions, this rate reduction cannot be retroactive.

Questions You May Have About the Rate Reduction

Q:   When will this be effective?
A:   This will vary by state depending on when the Departments of Insurance approve our rate filing request.

Q:   What if I already paid my 6-month/year premium?
A:   Once this is approved in your state, you will see the reduction of premium on your next invoice. We are not issuing payments, we are applying this to your next renewal and the bill you will receive.

Q:   Why a rate reduction instead of another premium relief payment?
A:   We believe this is a fair way to provide relief to our customers without the cost of printing and processing relief payments. We’re trying to control expenses to keep rates low for the future.

Q:   Why only 5% not 30%?
A:   The 30% relief payments was tied to the two months of premium during the pandemic shut down. The 5% discount reflects the current experience we see with lower accidents and slightly lower mileage with our current customers. As a mutual company owned by our policyholders, we are adjusting the rates to reflect our current experience.

Q:   Will all Shelter customers get the same discount?
A:   This is for auto insurance customers, and while the amount of the overall reduction will be 5% for most of our customers, the size of the decrease for individual customers will vary based on policy coverages and the individual’s profile and loss experience.

If you have any other questions about this rate reduction, please contact your agent.

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