We know any increase in expenses can be frustrating, and that includes your insurance premiums.  Even if you’re a safe driver or have never filed a homeowners claim, you might still see a rate increase on your insurance policies this year. Over the last few years, claims severity and frequency have increased significantly. Costs have simultaneously increased, affecting the expense of covering repairing or replacing property, medical fees and other services required to cover any loss.  

Rate increases, while uncomfortable, reflect the increasing cost of insurance claims.  

Review coverages: If it’s been a while since you reviewed your policy coverages, you may be paying for things you no longer need. Ask our licensed insurance agents to review your current coverage to ensure you’re getting the customized protection you need.  

Increase deductibles: Choosing a higher deducible can have a significant impact on lowering your premiums; just be sure to select a limit you are comfortable paying if there is a loss. (If you have a loan or lease on your vehicle, there may be a maximum limit for your deductible).  

Review discounts: Be sure to go through our "discount checklist" located on the cover letter in your renewal to confirm you are receiving all the discounts you qualify for or visit our discounts page. 

There are multiple factors that impact premium rates changes. We adjust our prices to align with the external market factors such as increased cost of goods and technology, increased labor costs, supply chain disruptions, inflation, climate change impacts, etc.   

For the foreseeable future, we expect rates to continue to change to meet the increasing costs of covering claims.

Here are some factors that generally impact rate increases.  


  • Base rate change. Rates are adjusted periodically and are applied to all policyholders across the state. PEMCO changes base rates to cover the cost of claims which are impacted by the actual costs of vehicle repairs, medical services, and vehicle replacements, amongst others.   

  • Insurance score change. The information used to determine your insurance score comes from your consumer report and is an indicator of future losses. 

  • Drivers age change. Age affects rating and is determined by the driver’s age at the date of policy renewal. 

  • Vehicle age. Age is calculated by the model year of the vehicle and the renewal policy year. 

  • Your Bodily Injury (BI) limit. Applies if your coverage was changed on your prior policy term. 

  • Driving and claims history. If you have had a recent driving violation or claim, this might also impact your premium. 

  • Discount changes. Some discounts may have expired at renewal; young driver discounts, such as good student or away at school are only available until age 24 and other discounts need to be renewed like our defensive driver discount. 



  • Base rate change. Rates are adjusted periodically and are applied to all policyholders across the state. PEMCO changes base rates to cover the cost of claims, which are rising due to factors such as increasing building materials cost and labor expenses.  

  • Ages of policy holders. The average age of the homeowners is one factor considered in determining rates. 

  • Dwelling age. The age of your home is an important factor in determining insurance premiums. As a home ages, there may be unique risks and maintenance needs which can affect the likelihood of losses and the overall cost of coverage. 

  • Coverage A Limit (Dwelling Coverage). The coverage to insure your Primary Dwelling may have increased to ensure your policy limits have kept up with rising replacement costs. 

We appreciate your loyalty, and we’d like to continue to help you protect what matters most for years to come. We do have loyalty discounts with some policies, and additional benefits you may qualify for. Our licensed agents are here to help and answer any questions you may have.    

We understand price is a large consideration with your insurance and respect that everyone has a budget to consider.     

Our goal is to provide you with the award-winning, customer-first service PEMCO is known for. You can count on us to be there for you when you need us most. We appreciate your trust in PEMCO and hope to continue our relationship with you.   

We know that having your insurance policy non-renewed is unexpected, especially for those who’ve chosen to do business with us for many years.   
Being a mutual means, we look out for each other and help our customers get insurance coverage, even if it isn’t with us. PEMCO Insurance Agency, or a community agent near you can help explore your options. 

In a standard operating model, external shareholders or investors own the company. A mutual insurance company is owned by its policyholders, and typically strives to prioritize policyholders’ interests and focus on quality. 

Without the pressure to please external shareholders, mutual companies can prioritize the needs and concerns of policyholders. This translates to better customer service and tailored coverage options.