HOUSTON – Drivers in Texas have been faced with a nasty increase in auto insurance rates, according to the Texas Department of Insurance. The year 2022 saw an astonishing 23.8% increase in the state average rate, which is a significant change from recent years of premium stability.
According to the Texas Department of Insurance (TDI), analyzed the numbers and revealed that in 2018 the average increase was only 1.8%. In the years 2019 and 2020, the rates even experienced a slight decrease. However, after the pandemic, the rates have skyrocketed. This could be due to the increase in the number of vehicles on the roads, as well as the severity of accidents and inflationary factors related to both new and used cars, as well as repair costs.
Although there is no legal limit on auto insurance rate increases in Texas, insurers must submit their rates for review to the Department of Insurance. In 2022, 2,590 rate submissions were made, and while the department requested more information on 75% of them, none were ultimately rejected.
Drivers affected by these increases should keep in mind that the state average increase of 23.8% in 2022 is only an average.
Faced with this situation, Texas drivers may want to consider exploring different insurance options and comparing prices to find the best option. Also, it is important to maintain a clean driving record.
