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If opening your car insurance bill feels like being hit by a car, you’re not alone.
Auto insurance rates in Texas are up again this year, a 2 percent increase over last year, to an average of $2863, according to the latest Marketwatch Auto Insurance Industry Report.
Nationwide, industry analysts blame inflation and supply chain issues, making parts and repairs more expensive.
Texas, however, has the added expense of our own behavior on the road. “We are ranked as one of the worst driving states in the country,” said Rich Johnson of the Insurance Council of Texas. “We drive faster and more dangerous than many other states. Distracted driving, texting, calling on the phone. All of those things are a factor in that.”
According to the survey, Texas ranks eighth in the country for highest auto insurance rates (Louisiana ranks first)
Texas drivers also face an unusually high risk of having an accident in which the other driver has no insurance coverage, putting the entire cost on you and your insurance, regardless of who was at fault.
Johnson says another big sign of trouble is the literal signs over our highways inviting drivers to engage personal injury lawyers for jackpot payouts. “The trial lawyers, the lawyers that are on the billboards, if an insurance company is paying out on that claim, it’s going to impact everybody. That is absolutely part of the problem here.” And when it comes to those lawsuits, that impact is unusually high in Texas. “Depending on the survey, we rank number one or number two for ‘nuclear verdicts,’” Johnson explained.
Drivers do have options when it comes to insurance and Johnson says team up with an independent insurance agent, or start hitting insurance company websites.
“The best thing to do is shop,” he said. “We have hundreds of companies that are doing business here in Texas. Make sure you’re doing that at least once a year.”