All-State Insurance Company lives by Better to Ask Forgiveness than Permission Policy

Insurance companies in Florida love to stick it to us. It does not matter if it is car insurance, health, home, flood, windstorm. Regardless, the rates continuously go up 10, 15, 20, and now thanks to All-State up 28%! Our salaries may go up 3% each year. However, each time my policies renew they are up and up and up. When I ask them to justify why my car costs more to insure now than it did when it was newer, the agent doesn't have an answer. "Many factors determine the premium..." My car is older now, it is worth less, I am older more responsible, another year without a traffic violation - so why would it go up 12% in 6 months? No answer...

All-State Insurance Company is taking this to a whole new level. Not only didn't they renew 95,000 policies but, it is raising those remaining premiums by 28%! Problem is that any increase over 15% must be OK'd by the State. All-State didn't. It went ahead and decided to bypass the approval process and take the 30-day grace period to ask for permission after it has already committed the new policy pricing. Apparently, they believe it is better to ask for forgiveness than to ask for permission. Hopefully, Florida's Chief Financial Officer, Tom Gallagher's request to block the increase IS approved. He has asked the Insurance Regulators to block the unapproved rate hike.

Actions like this is what leaves me with little faith in the insurance companies. They enjoyed many years of very fat living. The last major hurricane coming through here was Andrew in 1992. They have had 12 years to fatten up their wallets. Then last year was a bad hurricane year. Several came through here causing lots of damage. Now they want to use that excuse to raise the premiums.

Their business is money. As a policy holder, you give them x amount of dollars to protect your property. If you pay them $3,000 a year for 10 years and never make a claim then, in essence, you've given away $30,000 of your money plus the interest. Well, Floridians did that. We paid our premiums and never made a claim. So I understand that the insurance industry took a hit during last year's hurricane Season. But what happened to all that money from the last 10 years? The reason we pay premiums is so that when the time comes there is money there for us to use. Did the board of directors, CEO, CFO, take it all? Is it all being used to pay for their Expense Accounts? The TV commercials starring that black dude? Policy Holders pay you to protect their property. That is why you went into this business. To take our money and hope we never make a claim. You had at least 10 good years. But last year, we had a few hurricanes. So you stumbled. Well continue as you were, at the same rate, and the next 10 hurricane free years will regenerate your coffers. There is no need to increase your rates by 28%. If you were allowed to raise your rates by 28% but then we have 10 hurricane free seasons, would you return that money to us? I doubt it. You'll just take the money and get fatter and fatter.