If you’re a driver in Texas, chances are you’re going to see your insurance rates rise in 2022.
Why? For one thing, because car insurance rates are rising everywhere. While there’s not much you can do to avoid an increase in your premiums, there are steps you can take to keep your rates relatively low, or even bring them down a bit.
Why Your Insurance is Going Up
So why are car insurance rates going up this year? A few reasons.
For one, the decline of the pandemic has meant people are getting back on the roads. When the quarantine was in full effect, the roads and highways were nearly empty in places. Naturally, this led to a sharp decline in auto accidents, since fewer cars on the road means fewer opportunities for anything to go wrong.
But now that the worst of the pandemic seems to be behind us, traffic levels are returning to normal, and the risk of accidents with it — and that means higher premiums to help offset those risks.
Another reason why premiums are going up nationwide: supply chain problems. This is yet more fallout from the pandemic — supply chain issues have led to inflation of prices for replacement parts and other components, meaning cars cost more money to repair or replace in case of an insurance claim. This added expense gets passed on to the consumer in the form of higher premiums.
High speed limits on the nation’s highways have also taken a toll on accident rates, which further drives up premiums. There’s also the matter of the increase in catalytic converter thefts — which have seen a staggering 1,215% increase between 2019 and 2021. Texas, in particular, has the second highest amount of catalytic converter thefts in the country.
So what does this all mean for policyholders? According to Bankrate, insurance rates are expected to rise anywhere from 6.2% in Texas, to a whopping 14.2% in Arizona. Almost no state is bound to see a decrease in car insurance premiums.
This isn’t great news for Texas drivers, who already pay a little more for their car insurance — According to Ross Martin at the Zebra, the average car insurance rate in Texas is $1,584 per year — 4% more than the U.S. average.
And that’s assuming you have a clean driving record to begin with. According to more statistics from The Zebra, a DUI can increase premiums to as much as $3,263 (32% more than the national average rate increase following a DUI).
How Insurance Rates are Determined
While driving records and the cost of repairs counts for a lot in terms of how your premiums are determined.
Some of the factors particular to Texas that could raise your insurance premiums include:
- A higher-than average traffic and highway density, as well as a high urban population. Both these factors generally lead to an increase in accidents, vandalism, and theft, which means more claims and payouts for the insurance companies.
- Texas also has a higher-than-average rate of vehicle thefts compared to the rest of the nations.
- Texas also has high speed limits – up to 85 mph in some places – where the average speed limit in the country is under 70. Higher speeds means more probability of crashes, which leads to more and bigger payouts.
- Something not related to the roads: the frequency of certain natural disasters in Texas. It’s not just accidents and collisions that lead to insurance claims: things such as wildfires, winter storms, and tornadoes can all do damage to automobiles and property, and that will also lead to higher premiums as insurance companies have to cover that potential risk.
How You Can Lower Your Car Insurance Rates in Texas
While there’s not much avoiding the coming rate hike, there are some things you can do to bring your premiums down a little.
- Don’t be afraid to shop around for the best car insurance in Texas. With a little homework, you may be able to get similar (or even better) coverage for less money.
- Take a defensive driving course.
- Install anti-theft devices on your carto lower the risk of it being stolen. Also consider investing in a dash cam.
- Bring up your credit score if possible. A higher credit score helps insurance companies perceive you as less of a financial risk, and can bring down your premiums.
- If you can afford it, consider increasing your deductible. You will pay more out of pocket in case of a claim, but your monthly premiums will go down.
- Look and ask for discounts! The average insurance company offers up to 50 discounts for various reasons: good student discounts, senior and veteran discounts, military discounts, low mileage, going paperless, having a hybrid car, etc. One or more of these is likely to apply to you, so see what’s available.
