You've probably heard about the story. State Farm no longer views California as a "good neighbor". The state's largest home owners insurance company is cutting thousands of policies, something that is becoming a growing trend across the country.
"They collect the premiums, and then to the extent that they don't collect enough premiums they're not going to make a profit" said Chuck DeVore, with the Texas Public Policy Foundation, "And so that's why you're seeing a lot of these companies constantly re-evaluate risks, and decide to pull out of markets."
After years of making billions off of those premiums, the big insurance companies would rather cash out, than have to pay any claims.
"There's always winners and losers when it comes to insurance" DeVore told KTRH, "This is all about politics, and winners and losers, and the insurance companies."
Inflation and bad Democrat policies haven't helped. Last year here in Texas, rates went up by more than 20%.
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