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White County homeowner still looking for answers over 308% insurance spike

{}John{}Vaughn has found a new insurer, but he still wants to know what his former insurance company has to say about the way their relationship ended.

Last week John Vaughn shared with us how a $3,100.00 claim on his homeowner's insurance caused a massive spike in his premium.

{}"I was expecting a rate increase of 10, 15%. Yeah," Vaughn told us.{}But what did he get?

{}"308% increase," he said. And he said he got no advance notice.

{} Vaughn's annual premium jumped from $2,000.00 a year to over $8,000.00.{}We asked the Arkansas Insurance Department if an insurance company has to give you notice prior to a rate increase.

{}Arkansas law requires that "...the insurer shall give either a written notice of non renewal or an offer of renewal at least{}30 days prior" to the expiration of the policy's existing term."

{}Because Vaughn says that didn't happen, the Arkansas Insurance Department is investigating Progressive Insurance in regards to this situation. So the Department can't comment on Vaughn's complaint.

{}But we asked another general question: Can a company raise your premium as much as it wants or is there a cap on annual increases?

{}We're told there is no statute relating to caps, but companies generally limit increases in order to avoid complaints and the disapproval of a rate filing.

{}We are waiting to hear back from Progressive. When we get a response we will add it to this story.

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