Insurance Companies Make More, Charge More
After a very profitable 2013, Texas’s three biggest insurance companies – State Farm, Allstate, and Farmers – are expected to release their premium and loss numbers for 2014 in the next few weeks.
2013 was one of State Farm’s best years in recent history. The insurance giant’s “loss ratio” – the percentage of premiums it paid out to cover losses – was 40.2%. Allstate posted a loss ratio of 39.3% and Farmers came in at 49.7%. A loss ratio of 60% or lower is considered “profitable.”
But despite these numbers, all three insurance companies raised their homeowner’s insurance rates last year. State Farm hiked its rates an average 9.8%, Allstate’s lowest increase was 6.5%, and Farmers charged its policyholders 14.9% more. The Texas Insurance Commissioner, who has the authority to reject rate increases that are excessive, took no action in the face of objections from consumer advocates.
Big insurance companies will continue to charge policyholders more while covering less and fighting claims. If your insurance company to whom you have faithfully paid increasing premiums year after year denies your storm damage claim or tells you certain types of damage are not covered, contact us to help you get the coverage you paid for and to which you are entitled. It does not cost you a penny, and we do not recover anything unless you do.