Texas car insurance rates continue rising
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The cost of car insurance in Texas is well above the national average as rates are increasing across the country.
Why it matters: Fast-rising insurance rates are contributing to a transportation affordability crisis, especially in the many parts of the country where people have few alternatives to car ownership.
- And they come alongside all sorts of other rising consumer costs — like groceries, for example.
Driving the news: The nationwide average annual cost of full-coverage car insurance hit $2,329 in June — up from $1,601 in January 2021, per Insurify, which helps users collect quotes from multiple insurers.
Zoom in: Car insurance rates in Texas increased 25.5% on average in 2023, the largest annual jump in a decade, per the San Antonio Express-News.
- The average cost in Texas was more than $2,600 a year as of June, per Insurify.
- Overall, private transportation costs in Dallas-Fort Worth, which include insurance and fuel costs, increased 5% between May 2023 and May 2024, per Consumer Price data.
Yes, but: Costs in Connecticut ($3,598), Maryland ($3,400) and South Carolina ($3,336) are much higher than Texas' rates.
How it works: Insurify's monthly figures are two-year rolling medians to account for "extreme market volatilities" in recent years, the company says.
- They're based on rates for drivers ages 20-70 with clean driving records and at least average credit scores.
Context: The overall cost of used and new cars has increased, driving up what insurers must pay to cover damages.
- Plus, the estimated economic loss from Texas car crashes increased from $40.4 billion in 2019 to $56.2 billion last year, according to Texas Department of Transportation data.
The intrigue: Insurers are increasingly using data about people's driving behavior to inform their rates — sometimes with drivers' knowledge and sometimes not, per the New York Times.
- In March, General Motors quit sharing details about drivers' behavior with data brokers that worked with insurers to create "risk profiles" following the Times' reporting on the practice.
The bottom line: If you're looking to save on insurance, try shopping around — sometimes you'll get a deal with a new provider.
- Compare auto policies on HelpInsure, a site maintained by the Texas Department of Insurance and the Office of Public Insurance Counsel.