Donegal Insurance is cutting auto insurance rates in Michigan as it tries to revive a program that has struggled to gain traction since launch.

The filing, submitted by Atlantic States Insurance Company, introduces an overall −12% rate decrease, translating to about $310K in premium reduction across a $1.7M book covering 1,344 policyholders. The indicated change is even steeper at −18.2%, signaling that pricing had been materially out of line with the market.

The core issue is competitiveness. Internal data shows Donegal’s rates sitting well above peers—about 13% higher than average and as much as 59% higher than the lowest competitor—which has translated into hit ratios consistently below 0.5%, far short of the company’s 1% target.

To close the gap, Donegal is taking a direct approach:

• Base rates for key coverages (BI, PD, comprehensive, collision) are being cut by 25%
• Multi-car discount is doubling from 10% to 20% (new business only)

The impact is concentrated on price rather than structure. Most policyholders will see decreases, with the largest group falling in the −15% to −20% range, according to the distribution in the filing.

Bottom Line: “This program was introduced in 2023 and we have written very little business to date.”