State Farm – 4.5% Increase Of Home Insurance Rates In Texas
State Farm has informed the Texas Department of Insurance that it plans to increase the Home Insurance rate by 4.5% on average. TDI has no other option other than requesting the State Farm to reconsider the decision keeping in mind the fact that State Farm has last increased the rate by 8.8% barely 8 months back.
It should be noted that State Farm has 30% of the Texas Home Insurance cover. Other Home Insurance companies will follow suite if State Farm doesn’t reconsider the rate increase.
State Farm has said that it had increased only 4.5% on average while it wanted a 26.5% rate increase. Also State Farm intends to give 20% discount for those with multiple policies when compared with the current 15% discount. 84% of the State Farm’s customers might be eligible for the discount.
The increased rate is to come into effect from 1st May 2010 for new policies and 1st June 2010 for policy renewals.
There should be some sort of decision power with Texas Department of Insurance in order to regulate such rate hikes. As of now the Insurance companies are raising rates without any approval from the TDI.