Skip Navigation

Buying Home and Auto Insurance Is Becoming Impossible

www.wsj.com Buying Home and Auto Insurance Is Becoming Impossible

Huge losses from national disasters have prompted the industry to jack up prices and pull back from some markets.

Buying Home and Auto Insurance Is Becoming Impossible

Huge losses from national disasters prompt industry to jack up prices and pull back from some markets; ‘worst possible scenario’ for consumers

After Allstate suffered billions of dollars in losses and failed to get the rate increases it wanted, it resorted to the nuclear option. 

The insurance giant threatened last fall to stop renewing auto insurance for customers in three states that hadn’t given in to its demands, which would have left those policyholders scrambling for coverage. The states blinked.

In December, New Jersey approved auto rate increases for Allstate averaging 17%, and New York, a 15% hike. Regulators in California are allowing Allstate to boost auto rates by 30%, but still haven’t decided on its request for a 40% increase in home-insurance rates after the insurer refused to write new policies.

For many Americans, getting insurance for both their cars and homes has gone from a routine, generally manageable expense to a do-or-die ordeal that can strain household budgets.

Non-paywall link

55

You're viewing a single thread.

55 comments
You've viewed 55 comments.