Texas auto insurance rates are climbing because of lousy drivers and expensive repairs

The Insurance Council of Texas released a statement about climbing premiums for Texan motorists.

The Insurance Council of Texas recently released a statement to explain the rapidly rising auto insurance rates in the state that have been occurring since 2021.

There have been several issues that have contributed to climbing premiums, but crashes top them.

According to the community director of communications and public affairs for the council Rich Johnson, insurers have been slowly increasing their auto insurance rates since 2021. That year saw a substantial 20 percent increase following the rate slashing that occurred during the pandemic because of the reduction in driving and therefore risk. This year saw an average increase of another 10 to 15 percent. According to Johnson, these apparent spikes in rates are an effort that insurers are making to recover the losses they experienced during the worst of the pandemic.

“Those COVID years where there was pressure to keep rates down are kind of catching up to us now. So for the most part, most insurers are going to be raising premiums,” explained Johnson who added that most drivers are now back on the roads again and have brought their dangerous habits with them. Distracted driving and speeding have brought accident numbers back up again, and with them, claims have also risen.

As repair costs are more expensive than they were before the pandemic, auto insurance rates are increasing.

According to Johnson, with accident and claims figures back up, and repair and replacement costs being higher than they were before the pandemic, paying claims is now more expensive for insurers. This means that they need to increase premiums to compensate for the greater expense.

“10 years ago when you rear-ended, say an F-150, the best-selling car in Texas, it was a steel bumper. You hit that, it dents, it was fine,” explained Johnson. “But now it’s plastics, the whole bumper needs to be replaced, there’s probably five or six sensors there sometimes and a backup camera.”

Johnson recommends that drivers check with their auto insurance companies to see if they qualify for discounts, and that when renewal time starts to approach, it doesn’t hurt to shop around to see if a better deal is out there.