After the hurricanes, everyone expected insurance rates to go up. And they will go up, especially for people in the Gulf coast region. But how much they will go up depends on where you live.
Reuters has a new report out that indicates that rates will go up the most in the Gulf coast. However, due to the profits that insurance companies are making (which we will discuss in a minute), there are more people entering the insurance market. Most people will not see hikes over 20 percent – which is a good thing. The moral here: when your policy is up for renewal, it may pay to shop around.
Now, about those insurance company profits. Through the first 9 months of 2005, insurance company profits were up 4.4 percent to $28.8 BILLION. Yes, that is after the hurricanes hit. Yes, claims were being paid already – well, some were. Some insurance companies were still arguing over whether the damage was covered. But, insurance company profits ROSE and they are still going to raise your rates next year.
Make sure you wish your insurance company a HAPPY NEW YEAR – it will be prosperous for them.