Insurance Rates Rise Nationwide; Virginia Subscribers Feel Pinch
Virginian-Pilot
August 21, 2002

By using the same insurance company for her homeowners' coverage, auto insurance and some investments, Janet Slaughter expected to receive more favorable rates and service.

Slaughter, a retired secretary who lives near Indian Lakes Elementary School, recently received a rude surprise: a 93 percent increase in the cost of her homeowners' coverage.

Despite having made no claims on her policy and using a $ 500 deductible, her premium has jumped to $ 530 from $ 275 last year. "I realize that there's a need for an increase, but why nearly 100 percent?" asked Slaughter, who is weighing whether to shop elsewhere for homeowners' insurance.

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Last month a coalition of 60 consumer and community groups advocated that insurance regulators throughout the country consider freezing the rates charged for certain lines of insurance, including homeowners' coverage.

If regulators determined that the rates for homeowners and auto insurance in their states were out of line because of a company's marketing strategy or corporate policy, price increases "should be spread over at least a three-year period to avoid 'sticker shock,' " the coalition Americans for Insurance Reform said in a July 20 letter to state insurance commissioners.

The coalition's members include the Consumer Federation of America and the U.S. Public Interest Research Group.

For a copy of the complete article, contact AIR.