I must defend insurance companies.. As a poster stated before we do not expect to make a profit on premiums. Our business overhead is about 30% (Salaries, Benefits, and Insurance, etc.) the other 70% is paid out as claims. We actually expect to pay out more than that usually 1 - 3 % in a good year. Last year as an industry in Texas it was about 30%. And on the homeowners insurance we (Insurance companies in Texas) are paying out $2 for every $1 we take in . Our loss ratios are 200%. Insurance rates are just a product of society. Lawsuit abuse, Fraud, rising medical cost, rising repair cost, the economy, unbalanced budget, Bush in White House, all lead to higher premiums. You cannot legislate rates. It doesn't work. You have to contol the claims abuse. Rates have gone up over a 100% in Texas in the past 12 months and they will continue to rise if the claims are not reduced. Insurance is not a maintence policy or a warranty.