Insurance Companies are notorious for crying poor. They “need” increases in premiums to survive the onslaught of frivolous claims made each year … at least this is what they lead the public to believe. They spend lots of our premium dollars to advertise for new customers (look at all the money they pay for commmericals). They hire full time lobbiest targeting our lawmakers in an effort to limit legal rights of victims of accidents while claiming they are not profitable. They have been successful in recently changing the joint and several liability law in Pennsylvania which negatively affects many victims rights. They are now lobbying with lawmakers to place caps on personal injury awards. All of this is to the detriment of the public, the policy holders, the victims.
So, what is the reason for all of this? Profit! Money! And lots of it!
State Farm Mutual Automobile Insurance Co., reported its 2012 profit at about $3.2 billion. Allstate reported profits of $2.31 billion. That is BILLIONS of our premium dollars! And these numbers are PROFITS!
Have you received a decrease in the premiums you pay? I bet you have not. And don’t hold your breath waiting for the decrease. The wolves has everyone convinced that they are the good guys out there. Don’t be fooled!