AMEX Assurance Company has filed for a rate increase in Connecticut for its Premium Car Rental Protection program, which provides rental car damage and theft coverage to enrolled American Express Cardmembers.

The filing seeks an overall 51.3% rate increase, below the actuarially indicated 57.9%, with an effective date of February 1, 2027. The company says the program’s rates have not been updated since they were approved in 2008 and have become inadequate due to inflation and rising claims costs. The proposed increase would raise premiums by a maximum of $13 per policy.

Under the proposal, the Basic option would increase from $19.95 to $29.95 per rental, while the Plus option would rise from $24.95 to $37.95. The coverage provides primary protection for rental car damage and theft, along with benefits for personal property, accidental injury, and accidental death and dismemberment. Coverage is automatically activated when an enrolled Cardmember pays for a rental with an enrolled American Express Card.

“Rates have not been revised since the program was introduced over 15 years ago. Due to recent inflationary and economic conditions, the program has been operating at a loss.”

The filing also notes a shift in customer behavior: “As the program has grown in recent years, a greater percentage of policyholders are opting for the basic package, which has the lower price point. We expect this trend to continue.”

AMEX estimates the filing would affect 24,865 Connecticut policyholders and generate about $290,000 in additional written premium. The company attributes the increase to higher loss costs, using an annual loss trend assumption of 10.6%, while noting that increased adoption of the lower-priced Basic option has contributed to a 1% annual decline in average premium.