Photo: Bill Oxford / iStock / Getty Images
Auto insurance premiums are up everywhere. According to Insurify, Houstonians, on average, are paying 30% more than people in Austin. Why is this?
According to Rich Johnson, Director of Communications and Public Affairs and the Insurance Council of Texas, a number of factors are used by insurance companies to determine what premiums are charged for auto insurance - which can vary from community to community.
These factors might include things like - the rates of theft for cars or trucks, or the theft of certain car parts - like, catalytic converters. The number and severity of accidents can also impact the rates. Severe weather - flooding, hail damage, wind damage, etc. - can also be factors. Another factor that could be involved is the number of uninsured motorists, and the frequency with which they are involved in accidents in these communities.
Johnson says we have experienced more than three years of increasing premiums - with inflation being an overriding factor as well. Costs for repairs and replacements have gone up. And supply chain problems and electronic chip shortages have driven up costs too. As inflation has slowed, the rates of increases for car insurance has slowed too. In Texas, unlike other some other states, there is a competitive market place with plenty of options.