WASHINGTON --

The insurance industry made record profits in 2006, and a new report out Monday said it's at customers' expense.

Some consumer groups said companies are paying out lower claims and charging higher premiums than in the last 50 years.

After the Florida hurricanes of 2004, consumer groups said the insurance industry made record profits. After Katrina in 2005, the industry broke that record in how much it took in. And in 2006 --- with no major disasters -- the industry made $60 billion in profits.

The Consumer Federation of America said the disasters from years past allowed companies to raise their prices.

"People are paying much more and getting a lot less. The insurance companies are just making money hand over fist," said J. Robert Hunter of the federation.

Julie Rochman of the American Insurance Association said profits are a good thing for customers and said some prices are dropping.

"We need a lot of capital to pay claims. We pay out about $300 billion in claims each year. That's not money you can build up overnight," Rochman said.

Both groups said now is a good time to shop for car insurance and homeowners' insurance, except for those who own property on the coast.

"We don't want people who live in Missouri or Illinois to be subsidizing people in Florida. Unfortunately, what that means for people in Florida (is) the costs are going to be a little bit higher," Rochman said.

Hunter said those who live near the coast are "in trouble. ... Prices are skyrocketing."

Officials with the consumer federation said both state and federal government have not been doing enough to help regulate the industry and eliminate gouging, saying insurance should receive the same scrutiny as the gasoline industry.

-Renee Cardelli & Megan Hughes, NEWS9