Rising Auto Insurance Rates In Texas, But Also everywhere else!

Many drivers are combating rising Auto Insurance Rates in Texas, but for many, that search is hitting a dead-end. According to S&P Global Market Intelligence, auto insurance rates in Texas rose by a staggering 47.3% between 2019 and 2024, making Texas the second-highest state for premium increases, only behind California.

Driving Habits and the Rising Cost of Insurance

Why are Texans seeing such steep increases in auto insurance premiums? The answer lies in a combination of factors, and one major contributor is the way people drive in the state. Liam, a Houston resident, noticed more aggressive driving habits on Texas roads in recent years, and the numbers back this up. In 2022, Texas had over 2,000 fatal crashes involving alcohol, along with more than 1,025 fatalities where people weren’t wearing seat-belts. Speed-related crashes also totaled over 150,000 in 2023 alone.

Auto Theft is Fueling Premium Increases

While Texas doesn’t lead the nation in auto thefts, it’s still a major problem. Noah from Dallas was shocked when his car was stolen from a parking lot last year. According to the Insurance Information Institute, Texas recorded nearly 100,000 vehicle thefts in 2023, trailing behind California’s 200,000 thefts. But even with fewer thefts, the rising number of stolen vehicles in Texas is another factor pushing premiums higher.

The Challenge of Uninsured Drivers in Texas

Emma, a single mother in San Antonio, found herself in a difficult situation when she was hit by an uninsured driver. She’s not alone. Last year, Texas had 2.5 million “unmatched registrations,” which means many of these cars were likely uninsured. Insurance companies must adjust premiums to account for the risks of insuring drivers who may be involved in accidents with these uninsured vehicles.

Financial Losses for Insurance Companies

Even though it may seem like insurance companies are rolling in profits, the data says otherwise. In 2021, Texas auto insurers saw combined profits of nearly $2.9 billion. But by the end of 2024, they suffered losses totaling more than $3.7 billion. These massive losses are pushing insurance companies to raise rates even further to recover.

Inflation’s Impact on Auto Insurance Premiums

Olivia, a high school teacher from Austin, has felt the pinch of rising costs everywhere, from groceries to gas—and her auto insurance is no different. While inflation may be slowing down overall, it’s still much higher than it was five years ago, and it continues to affect car insurance premiums.

How Texans Can Lower Their Auto Insurance Premiums

Shop Around and Compare Rates

With rates increasing, Texans like Devin are looking for ways to save on auto insurance. The good news is there are steps you can take to reduce your premiums. Shopping around and comparing rates is a great start. Insurance Direct Rates (IDR) is an invaluable tool for comparing rates and ensuring that drivers are getting the best deal possible. Often, a competitor might offer a lower premium, and switching can save hundreds of dollars annually.

Take Advantage of Available Discounts

There are several discounts that many drivers may not be aware of. Hope, a newlywed from Fort Worth, discovered she could save by bundling her homeowner’s insurance with her auto insurance policy. Other common discounts include those for having a clean driving record, good credit, or certain car safety features.

Raising Deductibles Can Help Lower Premiums

Another way to lower your premium is by raising your deductibles. This strategy might be helpful for careful drivers like Madelyn, who rarely gets into accidents. Higher deductibles mean you’ll pay more out of pocket if you file a claim, but your monthly premiums will be lower.

Consider Usage-Based Insurance for More Savings

Finally, there’s usage-based insurance. This is an option where your insurer provides a device to track your driving habits, such as hard braking or speeding. For those who drive safely and don’t mind being monitored, this can lead to significant savings. IDR suggests that drivers consider this option if they want to reduce their rates further.

There is Hope to Rising Insurance Rates

With Auto Insurance Rates in Texas climbing, it’s more important than ever to explore ways to save. Whether it’s comparing rates using Insurance Direct Rates, taking advantage of discounts, or raising deductibles, there are steps that Texans can take to lower their premiums and avoid paying more than they have to.

---