Residents will see insurance rates increase due to Harvey damage - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Residents will see insurance rates increase due to Harvey damage

Source: KFDA Source: KFDA
Source: KFDA Source: KFDA
Source: KFDA Source: KFDA

The devastation left behind from Hurricane Harvey will affect insurance rates for residents statewide.

Insurance agent Shannon Mannin said auto insurance will see the most spikes. 

"The auto rates will probably go up a little bit more than home rates simply because the flood is covered on auto policies and not on home policies." said Mannin. "We'll probably see an increase on both because there is a lot of wind damage down there too."

In our area, residents can rest easy knowing their rate increases won't be nearly as bad as those in areas with the most damage. 

"Amarillo probably won't be affected as bad as the Houston area simply because we didn't get the storm, but since we are in the same state, rate increases affect the entire state," said Mannin. "So, Amarillo will see it, Dallas will see it, El Paso will see it. It just depends on the area you're in and how much that increase will be." 

As of right now, it's just too hard to determine exactly how much and when the rates will go up.

"Amarillo could be a few percent, Houston could be 25 percent, we really don't know. It's not anything they can really predict at the time until they know how much the total claims are," said Mannin. "When we had the hail storm in 2013, that was a really large loss for our area, and we saw an average between 20 and 25 percent rate increase, but we didn't see those take affect until 2015." 

The rise in percentage won't go into effect immediately because agencies must first get rates improved by the state before implementing them. 

"It'll probably be at least a year before all the claims are paid out and the insurance companies will look over losses, and from that point they will decide what their increases will be, so it's not going to be anything instantaneous."

Those on fixed incomes could benefit from shopping around to find the right insurance plan.

"They all have to shop around just to see if they're affordable rates for them. Just because it goes up 20 percent doesn't mean they can afford that 20 percent." said Mannin. "So, it can be a scary thing because insurance is something you have to have on your automobile, and it's something you should have on your home."

Residents will most likely begin to notice the changes in insurance rates as soon as the middle of next year.

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