News Five Exclusive: State Farm Wanted Bigger Hike

Alabama Insurance Commissioner Walter Bell knows people on the Gulf Coast aren't happy.

Commissioner Bell approved a rate hike earlier this week that allows State Farm to increase their rates in Mobile and Baldwin Counties by an average of 12 to 18% over the next two years, and raise their hurricane deductible from 2 to 5 %. The insurance giant also won approval to drop wind coverage for 700 customers.

"At what point does this stop? At what point will your office say the rates are too high, no more increases," asked News Five's Jessica Taloney in an exclusive interview with the commissioner.

His response may surprise you. "We said no for the last nine months with State Farm until we got to the point were we thought we could get to something that was certainly more in line with what is needed than what they first asked for," says Bell, who insists his office negotiated with State Farm since October 2007 before agreeing to what ultimately became a compromise. "If you had seen what they first initially brought to us, it was shocking," says Bell.

According to the commissioner, State Farm's original proposal would have cancelled coverage for 9,000 homes and increased rates 50%!

You can watch News Five's entire interview with Commissioner Walter Bell. Click here.