Auto Insurers Raising Car Insurance Premiums
It had to happen. The insurance industry often known for its incredibly high profit margin and ability to make above average returns on their investments (i.e. your policy premium) have within the last year gone through a massive down cycle created by the sub-prime mortgage meltdown.
Across the nation in select states major auto insurance companies are requesting (or more specifically notifying the insurance commission in advance) that insurance premiums are going to rise. With the sub-prime mortgage mess came massive losses and write-downs from the insurance companies, and very few if any of these companies were not affected at some point late last year and on to this year. Couple those losses on investment income with day-to-day losses due to claims (both legitimate and fraudulent) and you’re looking at an industry in need of a serious boost.
Of course, you want to know how much they’re going to raise rates and what this means to you for what is likely already a substantial premium. The problem is, there’s no set number and rates, as always, will vary from person to person. Let’s look at the current insurance situation in Texas to get an idea. State Farm notified the insurance commission in late August that it would be raising policy-holders rates from 2.4% to over 7% with no indication of how the increases would be assessed and against which of their nearly 3,000,000 policy-holders.
Look at Texas, California, and New York for further guidance on rate increases, but most importantly don’t be left in the dark. Insurance companies are losing money daily and something needs to be done. Sure, in the end the losses are passed on to their policy-holders and you end up footing the bill for their mistakes but look at the bright side - You Can Shop Around!
Shopping For Car Insurance
I’m telling you, this is the ultimate silver lining. Sure, rates are going up, but you can help yourself by getting quotes from multiple insurance companies and in all reality will likely find a cheaper policy going forward than even your old policy! Whether it’s now, or in the not so distant future, insurance premiums are going to rise so make a smart choice and compare prices online, over the phone or with an insurance agent in person.
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