That includes increases of 6.5 percent on average for Allstate Indemnity Co. and GEICO Indemnity Co. The state Department of Commerce and Insurance reviews and approves insurers' requests.
State Farm, the biggest player in auto insurance statewide, meanwhile, has requested a 0.8 percent increase to take effect in February for new policies, and in March for renewals.
Nationwide, rates have gone up about 4 percent over the past six months, said Robert P. Hartwig, president of the Insurance Information Institute. "Costs of premiums could rise simply because costs of the ingredients — all of the inputs into the policy — have risen," Hartwig said.
Insurers also are relying more on premiums to cover losses because income from investing in bonds and other instruments on Wall Street has decreased. Some industry experts expect insurance losses from policies to go up even more as the economy brightens, consumers drive more and potentially have more accidents.
In Tennessee, some Allstate Indemnity clients will see rates rise by as much as 11.3 percent on individual policies under its most recent insurance filing. That indemnity company covers a small percentage of Allstate customers here.
About 90 percent of Allstate's clients in Tennessee have policies with Allstate Property & Casualty Insurance Co. and Allstate Insurance Co., said company spokeswoman Allison Hatcher.
Allstate Property & Casualty recently won state approval for a smaller 0.2 percent average increase — although that could mean rate hikes up to 5.2 percent for some customers. Those new rates take effect on Jan. 18 for new policies and Feb. 18 for renewals.
"Like many other insurance companies, we track losses in various territories and across the state," Hatcher said. "Based on the losses, we adjust as needed."
(2 of 2)Washington Report: Higher Costs, Tougher StandardsUnemployment rate improves in Tennessee
