Miami, Feb. 25, 2010 – Just a few weeks after Allstate began increasing the average rates for select insurance policies, State Farm has initiated the process of hiking insurance rates for Florida auto insurance. The insurer asked the Florida Office of Insurance Regulation for average statewide increases of 9% for State Farm Mutual automobile insurance as well as an 11.8% jump for State Farm Fire and Casualty. State Farm is one of the 4 largest automobile insurance providers in the US, along with Allstate, Geico and General. Coincidentally, Allstate jolted policyholders with a 16% average auto insurance premium increase that went into effect on January 11, 2010.

Amy Moore, Allstate spokesperson stated, "The Allstate increase will affect less than a fifth of the company's business, only policyholders with Allstate Fire and Casualty Insurance. That will work out to about $82 more on average for 6-month policies." Both Allstate and State Farm claim that the rate increases are necessary because of increases in costs for PIP (personal injury protection), bodily injury treatments, therapy, medicine and uninsured motorists coverage. Moore added, "We have also seen an increase in fraud activity referrals, which could be a result of the economic downturn."

When the economy is in trouble, crime rates raise. When crime rates raise, so do automobile insurance premium rates.

Thousands of State Farm home insurance policyholders will receive letters this week stating that their policies will be dropped this August when their renewal dates arrive. Monetary reserves for payment of claims will be increased as 125,000 homeowners will have to shop for coverage elsewhere. Additionally, a statewide average homeowners insurance rate increase of 14.8% will be in place for remaining customers. These are details of the agreement between State Farm and the state of Florida for State Farm to even remain in the state.

State Farm is by far the largest provider of automobile insurance policies in Florida. In fact, more than 2.7 million Floridians use State Farm. Now, thousands of them will be forced to obtain policies elsewhere. As Allstate, Geico and General join the ranks, automobile insurance premium rates will continue to skyrocket, especially in Florida. And as economic indicators such as 9%+ average countrywide unemployment rates continue to increase, pricing for all types of insurance will become more expensive. The best advice is to obtain effective policies from financially strong companies, and then keep them in effect and working for you.

Americans really have few legal choices left about maintaining insurance policies for their health, automobiles, homes and lives. That trend is obviously continuing to develop regardless of how the average American feels about it. So realizing that, individuals need to recognize the importance of getting educated about how the insurance game really works, and then acting in their own best interests concerning that.