Insurance Companies Receive Approval For Rate Hikes

State Farm and Allstate have both received approval from the Mississippi Insurance Commission to raise rates statewide, beginning in one month.

Insurance Commissioner Mike Chaney said Thursday the rate hike agreeement comes after four months of negotiations with each company.

Allstate will raise rates 13.9 percent on average statewide on wind and hail coverage. New customers will see the higher rates begininning September 22. Current customers will pay the higher premiums with renewals in November.

State Farm's rates will go up an average of 13.6 percent starting November first on new policies and December first for renewals.

A State Farm spokesman says this is not a new increase, it's simply approval of what the company asked for in June.

'Allstate' originally asked for a 309 percent increase which was denied.

Commissioner Chaney says this rate hike will at least insure Allstate continues writing policies in Mississippi.

You can read the Allstate letter, the State Farm letter and the letter from Comissioner Chaney by clicking on each link.