Car insurance rates expected to increase in 2022. Here’s how Texans can save money –

January 11, 2022 by No Comments

Auto insurance rates are expected to rise by about 0.6% this year, according to a recent ValuePenguin study.

TEXAS, USA — Many drivers across the country will likely see an increase in how much they are paying for car insurance in 2022, according to a national insurance research company.

For many Texans, though, this rise might not be as drastic as it will be in other parts of the country.

Auto insurance rates are expected to rise by about 0.6% this year, according to a recent ValuePenguin study. These rates fell in 2021.

The average cost for fully-covered auto insurance in the U.S. is currently $1,935 a year.

While 22 states will see an increase of 1% or greater in 2022, Texas is one of 14 that will see a decrease. In fact, Texas has the second-lowest average auto rate in the United States at $1,094, according to ValuePenguin. Maine has the lowest average at $1,051 while Michigan has the highest at $7,161.

However, when it comes to the cost of a traffic violation, ticket or accident, Texas has the largest percent increase in the country from last year to this year in auto insurance, ValuePenguin says. That average premium increase is 142%. North Carolina is the second highest at 127%.

What factors impact car insurance rates?

There are many reasons why insurance rates are different from driver to driver beyond simply how many accidents and tickets someone has received as well as someone’s driving record.

The way people drive on the roads where you live, as well as the frequency of wrecks can impact your potential premiums, according to Rich Johnson. He is the communications director for The Insurance Council of Texas.

“Are there all of a sudden an uptick in accidents in your area?” Johnson posed. “We’re looking to the future and saying, ‘Ok, in this area, there are a lot of people that are speeding. There are a lot of people getting in accidents. The frequency and severity are increasing.’ All of those factors go into pricing auto insurance.”

Certain parts of the country have a higher likelihood for more severe weather that could cause major damage to vehicles. This can also influence insurance companies to make their pricing different depending on what area of the country you live or work in.

“We like to look at insurance as a team sport,” Johnson described. “It writes risk. Not only to the individual risk but what’s going on in the area.”

What makes car insurance in Texas unique?

According to Texas law, every driver in the state is required to have proof of auto insurance.

Texas also has a “Consumer Bill of Rights” for auto insurance that explains rights for both drivers and companies.

There are eight main types of auto insurance coverage:

  • Liability coverage
  • Collision coverage
  • Comprehensive coverage
  • Medical payments coverage
  • Personal injury protection coverage
  • Uninsured/underinsured motorist coverage
  • Towing and labor coverage
  • Rental reimbursement coverage

Because of the size of Texas and the range of weather that can impact different parts of the state, very few places in the U.S. have a need for such a diversity of coverage, according to Johnson.

“If you look at Texas, we have hurricanes, we have flooding, we have hail and we have tornadoes,” Johnson listed. “It’s kind of a melting pot of natural disasters compared to …….



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