Insurance Companies Increase Rates in Texas
As we are in the midst of an economic downturn, two of the largest and most profitable insurance companies operating in Texas (Allstate and State Farm) have filed rate requests with the Texas Department of Insurance. Allstate filed for an increase of 3.6% for Allstate Indemnity (affecting 694,000 drivers) and for 5.5% for Allstate County Mutual (affecting 435,000 drivers). State Farm’s hike in rates will be 2.4% for State Farm Mutual and a whopping 7.3% for State Farm County Mutual. Ouch!!!
I am skeptical of the stated reasons of a greater frequency of claims and rising costs of bodily injury claims. Having been in the business for 17 years, I certainly don’t see it. I think this is just another example of corporate greed. And as the leader of Texas Watch (the consumer protection group) said, this comes “at a time when Texans are struggling to keep up with the rising costs of gasoline, food and housing.” Great going, Allstate and State Farm.
