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Amica is a mutual insurance company, but the dividend is paid only if you're a mutual policyholder, as they now also offer non-mutual policies at lower rates, w

by pinko 7y ago

Amica is a mutual insurance company, but the dividend is paid only if you're a mutual policyholder, as they now also offer non-mutual policies at lower rates, without the dividend. However, I believe the dividend is based on the company's claim payouts over the preceding 12 months, rather than number and types of policies you personally hold with them -- that can provide a discount on your policy rates, but not the dividend rate. So I would expect a larger-than-usual dividend from their auto insurance this year, assuming their paid claims are less than forecasted.

hnu0847 7y ago
You are correct that the dividend amount also depends on Amica's claim payouts for the preceding 12 months, however I checked my statement from last year's payout and it lists a dividend percentage for each type of policy they sell, ranging from NONE (Automobile Liability and Physical Damage, Homeowners (Workers Comp)) to 20% (Boat/Yacht, Personal Umbrella Liability), so this seems to be a separate factor from their claim payouts for the preceding 12 months and also separate from the multi-policy premium discounts they offer. I will also add that these rates can also vary by state, as the statement specifically says "our latest rates in Texas". Based on what I'm seeing I wouldn't expect an increase in the annual dividend due to fewer car accidents, but a premium reduction might be possible.