Farmers Direct Property and Casualty Insurance Company and Farmers Group Property and Casualty Insurance Company have filed for a 3.9% average increase in New Jersey personal auto rates, below their indicated need of 9.2%.

The proposed changes affect 4,199 policyholders and would generate approximately $503,000 in additional written premium across the two companies. Individual changes range from a 14.7% decrease to a 9.9% increase.

The filing revises base rates by territory and coverage, updates comprehensive and collision vehicle rating symbols for model years 2015 and newer, and changes model year factors. It also replaces fixed dollar limits for towing and labor coverage with payment of reasonable and necessary costs per qualifying disablement.

Farmers said policy counts have declined in recent years amid competition and its rate and underwriting actions. The companies aim to retain customers while improving profitability, targeting preferred and standard risks and supporting bundled personal lines relationships.

The requested effective dates are February 19, 2027, for new business and March 26, 2027, for renewals. The filing was submitted November 10 and remains pending.