Auto Rates on the Rise

Grounds Insurance Agency

There are several factors that could be contributing to the increase in auto insurance rates in Texas, including:

• Increased frequency and severity of accidents: The number of accidents and the severity of the accidents have been on the rise in Texas. This has resulted in an increase in then number of claims filed by policyholders, which can lead to higher premiums for everyone.
  
• Distracted driving: Distracted driving, such as using a cellphone while driving, has become more common in recent years. This has led to an increase in accidents, which can drive up insurance rates.
• Increased costs of car repairs: The cost of repairing cars has increased due to the complexity of modern vehicles and the increased use of technology in cars. This means that insurers are paying more to repair damaged vehicles, which can result in higher premiums.
• Extreme weather events: Texas is prone to extreme weather events such as hurricanes, floods, and tornadoes, which can cause significant damage to vehicles. This can lead to an increase in claims and higher premiums.
• Insurance fraud: Insurance fraud is a growing problem in Texas, and it can lead to higher insurance rates for everyone. Fraudulent claims increase the costs for insurers, which they pass on to policyholders through higher premiums.
• Insurance Score: Based on credit history, late pays, cancellations, age, gender, and driving record, and geographical location.
• Claims History: Claims will have a significant impact on your rates, especially if your child has a claim on their report. At fault and non-at fault claims are tracked by carriers to help them determine rates.

These are just some of the factors that could be contributing to the increase in auto insurance
rates in Texas. Insurance companies must take all of these factors into account when setting
premiums, and rates may vary based on a variety of factors, such as your age, driving record,
and the type of vehicle you drive.