Texans! Have Your Car Insurance Rates Gone Up?

Has your car insurance bill gone up recently? If so, you're not alone! Car insurance rates are climbing across the U.S., with Texas seeing some of the sharpest increases. Between June 2022 and June 2024, the national average for full-coverage car insurance hit a whopping $2,329 per year, with Texas surpassing this at over $2,600!

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Why should Texans care? Rising insurance rates are making car ownership more expensive, adding to the burden of already-increasing living costs like groceries. The sharpest spike in a decade was seen in Texas, with rates soaring by 25.5% in 2023 alone, according to the San Antonio Express-News. This spike comes alongside other rising consumer costs, creating a challenging landscape for many residents who rely on their vehicles for daily life.

While Texas rates are high, some states like Connecticut ($3,598), Maryland ($3,400), and South Carolina ($3,336) are feeling the burn even more. This surge is partly due to the increased cost of new and used cars, which hikes up insurance payouts. Plus, Texas saw its economic loss from car crashes jump from $40.4 billion in 2019 to $56.2 billion last year, according to Texas Department of Transportation data.

Wondering how rates are determined? Insurers use data on driving behavior to set premiums. Sometimes they gather this data with your consent, sometimes not, as highlighted by recent reports on companies like General Motors sharing driver data. This means your driving habits could directly impact your rates.

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Looking to save? Shopping around for a new provider might be your best bet. Check out HelpInsure, a resource from the Texas Department of Insurance, to compare policies and find a better deal. Don't get caught off guard—stay informed and take control of your car insurance costs!

For more detailed information on this issue, check out the article from Axios here.