Expect an increase in auto premiums if your a State Farm policy holder. According to this Crain’s report the company lost $7 billion on auto insurance business.
State Farm Insurance lost more money insuring cars last year than it ever has in its 95-year history.
The Bloomington-based giant, by far the largest U.S. auto insurer, incurred $35.8 billion in claims and loss adjustment expenses. When combined with the costs of running its auto insurance business, State Farm lost $7 billion for the year in that segment.
That was 63 percent higher than its $4.4 billion auto underwriting loss in 2015.
State Farm’s staggering auto insurance loss is the most visible sign yet of how distracted driving and rising repair and medical costs are hammering car insurers. Many are hiking rates at levels not seen in years to try to keep pace with the claims payouts.
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