Insurance Premiums: Are We In For Hikes?

With the recent (effective) takeover of AIG by the government, and billions of dollars in damage caused by recent hurricanes, there’s reason to be concerned about the health of the insurance industry.

Experts are quick to point out that the financial woes facing AIG shouldn’t have any impact on the company’s policyholders. In addition, while the recent hurricanes may lead some insurers to raise their premiums, or the fee you pay for insurance coverage, most industry watchers think the increases will be modest.

 
While it’s still too early to estimate the total amount of damage caused by this year’s hurricane season (which isn’t over yet!), it’s unlikely that it will be enough to cause a dramatic rise in insurance premiums across the board, but don’t be surprised if your premiums go up at renewal time.

Even though experts agree that the industry’s woes are unlikely to affect the average consumer, those that do discover a rate increase in their next renewal notice should take that as an opportunity to shop around for a new insurer.

What do you think? Will the hurricanes and the AIG takeover affect all of us? We’d love to hear your opinion. Just click the comment link below and tell us what you think.