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The number one question I have been asked over the last few months is "Why are my home/auto rates going up when I have never filed a claim?"  The insurance industry has taken a big hit over the last few years in both auto and home policies.  

Home policy rates have increased due to catastrophic weather here in the Central Texas area and across the nation. Hardly a month goes by without hearing about wild fires in California, flooding in North Carolina and hail storms here in Texas, all which impacts insurance companies, their clients and subsequently rates. Take a typical hail claim, replacing a roof averages about $16,000 and the average premium is $1,600 so it would take an insurance company 10 years to recoup that claim, and we have had lots of hail storms here in central Texas.

The number of auto claims made in 2015 was so high that 14 of the 20 largest insurers saw their loss ratios, or the amount they paid toward claims out of each dollar of premiums, increased from 2014.  

Why the increase in auto claims? Lower gas prices equates to more people driving, increasing the likelihood of accidents, not to mention texting and talking on phones and the higher cost of repairing cars.

Yes, new cars have tons of safety features that should help avoid accidents but replacing a rear bumper on a car with a back-up camera is significantly more expensive than one without.  

Want to know more? Contact the Luci Temple Agency today at 512-913-9637 and make sure you are adequately covered before a claim need arises.


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