Insurance Rates will continue to rise in the future

Nearly all leading American personal lines auto insurance carriers lost ground in 2016 and then again in 2017.  The industry as a whole posted a net loss of $29.3 billion for 2017. Across the country, hurricanes and wildfires caused extensive damage last year.

At home in Colorado, hail storms continued to cause extensive damage. The 2017 hail storm that primarily hit the west-metro area, has resulted in $2.3 billion in insured damages and now ranks as Colorado’s most expense severe storm. As a result of the 2017 storm and other severe hail storms, we are now seeing percentage wind/hail deductibles being added to some homeowners policies on renewal. These kinds of deductibles previously were typically only seen on commercial policies and can result in very high deductibles for homeowner. 

Overall, higher claims costs seem to be driven by increased miles driven due to lower gas prices, more distracted driving, higher auto repair costs,  higher bodily injury settlements, and more frequent (and more damaging) catastrophic storms across the country. 

The full report, ‘U.S. Personal Auto Underwriting Weakens,’ is available at
Additional information on 2017 industry numbers is available at


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