SAN ANGELO, TX — Have your car insurance rates gone up lately? You aren’t alone.
According to the Texas Department of Insurance, rates climbed 25.5% in 2023. Bankrate estimates the average annual premium in the Lone Star state this year is $2,620, up from $2,019 last year.
According to information, increases are being seen nationwide, and the trend is expected to continue.
So what is causing the rise?
According to reports, several factors are driving the change. The price of used and new vehicles skyrocketed during the pandemic, which means that replacing a totaled car became more expensive for insurance agencies.
Along with supply chain disruptions, the price of parts to repair a vehicle increased. Plus, the labor to do those repairs got more expensive thanks to a labor shortage.
That all adds up to drivers paying more to insure their vehicles.
When it comes to saving money, experts are recommending you shop around.
J.D. Power reported March was the most active month for shopping for insurance since they started collecting that data four years ago.
And don’t just compare the base price; ask insurers what discounts they offer. You could even consider an insurer that tracks your driving behavior and rewards safe drivers.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.