Humans have no control over natural disasters and calamities. It has been observed that over the past few years, various natural calamities have hit US and caused great damage to people and property. People who had their houses, properties and cars insured received parts of their claims; while the ones who did not have insurance lost everything in the disaster. Infact reports have shown that the amount of damage that has been inflicted this year by natural causes like tornadoes, storms, fire, earthquakes, floods and so on has broken all time records in US. Properties, cars, and other valuables all taken together that have been wrecked in the disasters amount to billions of dollars.
While it is very difficult to recover the losses in businesses or to retrieve the valuable possessions one had; one can still get a little replacement for the property on the condition that it was insured. With the increased amount of natural catastrophes, the insurance companies and professionals are finding it really difficult to provide the claims against the policy. Natural disaster claims amount to billions of dollars and it becomes really difficult for the insurance company to provide that lump sum money to the insurance holders every time a natural disaster breaks loose. This is the reason that the insurance companies are stressing to increase the premium rates of the insurance policies so that they can support the people at the time of disasters in an effective manner.
The auto insurance companies are the worst hit in this regard. Reports have proved that this year massive damages have been caused to various automobiles due to the natural disasters. And people in large numbers have asked for claims against the damage. However, the amount of claims is so large that it is becoming difficult for the insurance companies to settle them. According to financial experts there is no other way left to the auto insurance companies than to increase the premium rates of the insurance policies so that claims can be settled later f required without any problem. Auto insurance agents have also opined that this is probably the most expensive year for auto insurers.
