Rising Car Insurance Rates in Texas Can Be Blamed on a Few Factors
Find out if you’re getting ripped off on your car insurance in less than two minutes.
No long forms · No spam · No fees
Car insurance in Texas is on the rise. The Lone Star State was already an expensive place to buy auto insurance, but a number of factors made it even harder for Texans to keep their premiums down in the past few months.
Some of the influences on insurance rates, like population growth and the fading pandemic, are out of your control, but that doesn’t mean you are helpless. There are many things you can do to lower your premiums.
Rate-setting factors in Texas that you can’t control
Texas has seen significant increases in car insurance rates
Texas is big. In terms of landmass and population, the state is second in the country. Connecting all those people across that wide, open country requires a lot of highways and faster speed limits. This isn’t exactly news, but it helps explain why insurance prices are historically higher than the national average to begin with.
What’s boosting insurance rates (in part, anyway) is population growth. US News says the state’s population is growing faster than all but seven states. With much of that growth happening in city centers, insurance companies are increasing their rates to make up for the growing risk of car insurance claims.
Insurance Journal says the Texas Department of Insurance (TDI) approved a request by the industry to increase commercial auto rates by 4.8%. The price hike became effective on March 1, 2021.
The national rate has also increased in the past three months. According to Click2Houston, premiums rose 17% in the month of May alone. The return to normal after the COVID-19 pandemic and the 7% increase in deadly car crashes last year are both partly to blame.
How you can save on car insurance in Texas
All of the rate-setting factors in Texas culminate in a pretty high state average premium of $1,926 a year. But that doesn’t mean you’re stuck paying that much.
Your driving record affects your insurance rate a lot, so following driving laws and developing good driving habits will keep your rates down.
You can also minimize the cost of car insurance by choosing a vehicle that’s cheaper to cover. The ranchers and oil workers in Texas might not be able to go without a pickup truck, but if you live in a commute into Dallas or Houston for work, you’re better off buying a smaller car with high handling and safety ratings.
Another easy way to lower insurance costs is based on how you pay. Signing up for automatic payments, paperless billing, or paying for a full year at once can all save you up to 25% on your annual premium.
Finding the cheapest car insurance in Texas
MORE: Lemon Laws in Texas
All kinds of things affect your car insurance rates, from natural disasters to your credit score. Some of them can change based on decisions you make, while others are out of your hands. The most important thing to remember is to shop around before signing up for a particular rate.
If you want to save money on car insurance, the Jerry app is a good place to start. A licensed broker, Jerry does all the hard work of finding the cheapest quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even cancel your old policy for you.
And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price. This level of service is why Jerry earned a 4.6/5 rating on the App Store and made it the top insurance app in the country.