Donegal is moving to lower its homeowners pricing in Michigan, filing an overall −12.9% rate decrease that will impact 1,827 policyholders and reduce premium by about $250K on a $1.94M book.

The filing points to a simple issue: the company is not competitive. Internal comparisons show its rates running well above peers, with pricing sitting roughly 18% above the market average and hit ratios hovering around 1%, below target levels.

To address that, Donegal is taking a flat ~15% cut to base rates across HO3 and HO5 policies. That reduction drives most of the overall decrease and is aimed at improving new business flow rather than reacting to loss pressure.

There is one offsetting move. The company is sharply increasing pricing for equipment breakdown coverage, with some deductibles rising 70% to 100%+, reflecting higher indicated costs for that coverage.

The changes are scheduled to take effect July 15, 2026 for both new and renewal business.

Bottom Line: This is a competitiveness reset. Atlantic States is cutting core homeowners rates to gain traction in Michigan, while selectively increasing underpriced add-ons to keep the overall book in balance. “This program was introduced in 2023 and we have written very little business to date.”