05/04/2026
Study: Insurers Are Overcharging
A new analysis from the Vanderbilt Policy Accelerator claims Americans are overpaying for insurance by about $150 billion a year and calls for federal oversight to lower costs. The report finds insurers are paying out a smaller share of premiums than in past decades. In 2024, companies returned about 62 cents in claims for every $1 collected, down from roughly 80 cents in the 1980s and 1990s—fueling concerns that premiums are too high. Industry representatives push back, arguing higher rates reflect rising repair costs, climate-related risks, and recent financial losses. The analysis includes proposed legislative language for the federal government to set a higher loss ratio for insurers. Currently, state governments primarily regulate insurance, but a federal mandate would be harder for companies to challenge. The analysis further argues that insurers are using the premiums “to pay for corporate perks, corporate jets, stock-buy backs, excessive executive compensation, excessive dividends, excessive advertising, and excessive agent commissions.”
I don't think it takes a Vanderbilt study for us to know this! We keep fighting with the insurance companies every day. Let me know if you need help.
