Add car insurance to the long list of things getting more expensive. At the start of the pandemic two years ago, as drivers stayed home in droves, rates went down and many insurance companies paid out rebate checks. Now, things are headed the opposite direction. Texas ranks near the middle of the pack when it comes to average annual car insurance premiums, at $1,868 according to Bankrate.
There are many factors that go into car insurance premiums, starting of course with your own driving record and the car you drive. But many others are beyond your control. "Car insurance is a team sport," says Rich Johnson, spokesman for the Insurance Council of Texas (ICT). "That means if there's increased theft or break-ins, or if your area has a high risk of collisions, all of those things play a key role in determining rates for a particular area."
Another growing factor in insurance rates is new car technology. "A trend we've seen over the past couple of years is all of those new safety features that we all love and want and need in our cars, are also driving up the cost to repair and replace vehicles," says Johnson.
Perhaps the most unpredictable and frustrating aspect of rising insurance rates is uninsured drivers, who drive up rates for everyone. "If you have somebody who is uninsured, that means your insurance company is going to bear that risk," says Johnson. "Therefore, they're going to price for that risk."
If you are among those seeing your car insurance rates increase, the good news is you have plenty of options. "Shop around," Johnson tells KTRH. "We have dozens of companies that write insurance for automobiles in Texas."
"So whether you shop on your own by checking with different companies, or you have an insurance agent that will shop for you, make sure you're shopping."
That leads to out poll question this morning.