State Farm is Raising Auto Insurance Rates

 
According to State Farm, the amount of money that they have had to pay out in medical costs in Texas is causing them to have to raise their auto insurance rates for the nearly three million drivers that they insure in the state. They said that on average, those with auto insurance are going to see a 2% increase next month for their auto insurance policies. They said that they cannot afford to continue doing business in the state without these auto insurance increases.
 
Through their auto insurance subsidy, State Farm Mutual, they have informed the Texas Department of Insurance that they are going to be increasing auto insurance rates effective on all new renewals and new customers as of August 16th of this year. They said that they are going to be increasing their auto insurance rates through State Farm County Mutual an average of 6.8% for their high risk drivers.
 
The state’s Public Insurance Counsel Deeja Beck has filed objections to the auto insurance rate hike on behalf of the residents of the state of Texas. She argued against their justification and has asked the Insurance Commissioner to reject their proposed hike in premiums. She said that they were “excessive, unreasonable, and unfairly discriminatory” to the residents of the state. The auto insurance hike is currently under review by the insurance department to see if the rate hike is warranted, and if it is – by what amount. State Farm contends that they would not be increasing the auto insurance rates if they did not absolutely have to, but due to bodily injury liability claims they have to.




 

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