Of all the things in life that can be depended on, car insurance rates increasing is surely near the top of that list.

Texas auto insurance rates are rising yet again and naturally, residents of the state want to know why.

To fully understand why automobile insurance rates are what they are and why they keep rising, it is important to understand what affects those rates in general.

Texas Car Insurance Rates Increasing in 2022

Since the end of last year, Texas car insurance companies have been notifying the Texas Department of Insurance (TDI) that they planned to increase rates throughout the year.

Now as the year has progressed, those rate hikes are being seen, with auto insurance policies increasing an average of 20% statewide for all drivers.

While Texas typically enjoys rates that are lower than the national average - and still does even with these increases, based on other states seeing increases as well - that margin is getting smaller with these latest insurance premium increases.

What Factors Affect Auto Insurance Rates?

Automobile insurance rates are set based on many factors relating to each driver:

Driver Age - Younger, less experienced drivers pay higher rates that gradually lower as they get older and gain more driving experience.
Vehicle - The make, model, and year of the vehicle directly affect car insurance rates, as this dictates what it will cost to make repairs to this vehicle if it becomes damaged.
Driver Location - Drivers who live and drive in more populated areas have higher insurance premiums because their chance of being involved in an accident is much higher than those living in less populated areas.
Driver Record - Those with clean driving records with no accidents or tickets as well as have few damage claims for any reason will pay lower premiums as they are a lower insurance risk when compared to drivers who have had multiple accidents or citations.

What Is Causing Automobile Insurance Rate Hikes In Texas?

Other than factors related to a driver’s accident record or a change of location, things just cost more these days, an issue that has trickled down into everything from home construction to groceries.

Auto insurance rates are rising because the cost to repair vehicles has increased considerably over the past couple of years and those increases just keep going.

Not only are car parts more expensive today due in part to higher production costs, supply chain issues that began with the COVID-19 pandemic are still creating parts shortages all over the world, especially with regard to electronic parts.

The rising cost of medical care is yet another factor that contributes to rising insurance costs.

Another little-known factor that is becoming more obvious today is that automobile insurance rates actually went down slightly for many people during the pandemic because people were driving much less and some not at all.

As life has been getting back to normal, those cost increases are catching up as drivers have gotten behind the wheel once again.

Get Help From A Local Car Insurance Agency

Car insurance rates in Texas are on the rise, as they are in many other states.

Some of the causes of these auto insurance hikes cannot be avoided, as they relate to vehicle repair costs and other charges increasing throughout the insurance industry.

Fortunately, there are things that every driver can do to keep their rates as low as possible.

Contact a local automobile insurance agent to discuss the best ways to keep premiums lower!