Citing Higher Medical Costs, State Farm to Raise Auto Insurance Rates by an Average 2%
The Dallas Morning News—July 14th, 2010
State Farm is raising auto insurance rates an average 2 percent next month for the nearly 3 million drivers it insures in Texas, citing rising medical costs as the primary factor.
The company’s largest auto insurance subsidiary, State Farm Mutual, has notified the Texas Department of Insurance that the rate hike will be effective on renewals and new customers as of Aug. 16.
State Farm County Mutual, another subsidiary that primarily insures higher-risk drivers, will increase rates an average 6.8 percent in August. About 230,000 drivers are covered by State Farm County Mutual.
Public Insurance Counsel Deeia Beck, whose office represents Texas insurance consumers, filed objections to the rate hike Tuesday, saying State Farm’s justification isn’t good enough. She called on Insurance Commissioner Mike Geeslin to reject the increase.
“The filing would, if implemented, produce rates that are excessive, unreasonable and unfairly discriminatory,” Beck said in a letter delivered to the insurance department.
An insurance department spokesman said the rate filing is under review.
Read More: The Dallas Morning News
