Even if gas prices go up, will Texas auto insurance premiums go up? ! Who can stand this?

 We only reported last week that Texas oil prices hit their highest level since 2008, and while they’re down a bit these days, prices are still high. But just recently, there was new news, which can be said to be “worse” for drivers in Texas.

Insurers reportedly filed notices with the Texas Department of Insurance planning to increase premiums in 2022, with some insurers increasing their premiums statewide by an average of more than 20 percent.

The Texas Department of Insurance is the state agency responsible for overseeing insurance companies operating in Texas. Insurance companies must notify the Texas Department of Insurance when they want to change rates and need to detail how the rate changes will affect Texas consumers on average.

State Farm, the largest insurer in the Texas insurance market, told the media that insurance rates are now lower than pre-coronavirus levels, but now that traffic is gradually approaching pre-pandemic levels, collisions are becoming more frequent, and insurance companies are affected. In other words, higher accident claims and higher costs such as employee salaries are also putting pressure on the company.

Another big Texas insurer, Nationwide, has announced that it will raise premiums in May. This is the company’s first price increase in Texas since the coronavirus pandemic.

In addition, the cost of new and used cars is also rising due to a shortage of semiconductor chips, which means higher costs to replace and repair cars. According to the U.S. Bureau of Labor Statistics, new-vehicle prices rose 12.4% in February from a year earlier, while used-vehicle prices rose 41.2%. Simply put, in the event of an accident, the payout is larger and the rental car price is higher.

So how can you buy relatively cheap insurance? Buying insurance is like buying anything else. Compare price, quality, and service everywhere.

Here are nine ways to save money on car insurance:

1. Compare insurance costs before buying a car

The cost of car insurance depends on the price of the car, the cost of repairs, the safety factor, and the frequency of theft. Therefore, it is helpful to check this information before buying a car. Many insurance companies will also give you special discounts if your car is fitted with equipment to prevent theft or to help reduce injuries in the event of a car accident.

The more often the car is stolen, the higher the premium, so check with the National Insurance Crime Bureau to find out which car is the thief’s favorite. You can also go to the Insurance Institute for Highway Safety to find out which car insurance company pays the most, and the more you play, the higher your premiums.

2. Higher deductible requirements

Out-of-pocket costs typically increase from $250 to $1,000, which can reduce your insurance premiums by 15 to 30 percent. On average, there is only one car accident every 11 to 12 years.

Third, the insurance coverage of the old car can be less

The old car does not have to be fully insured, and the insurance premiums are too high to be spent.

Fourth, the house and car insurance are bought from the same company

Companies generally offer discounts to consumers who purchase multiple types of insurance.

5. Maintain good credit

People with good credit insurance companies think that there are usually fewer car accidents, so insurance premiums may be lower.

6. Maintain a good driving record

People who haven’t been in a car accident for many years, haven’t gotten a traffic ticket, or have taken a safe driving lesson may also have lower insurance premiums.

7. Maintain low mileage

Some insurance companies also pay lower premiums for people who drive very low annual miles, or who drive with others to work.

8. Ask about other discount methods

For example, whether there are discounts for group purchase of insurance, and insurance for students who have taken regular driving lessons, it is also cheaper.

9. Compare prices everywhere

It’s best to ask the three insurance companies, don’t just focus on the price and forget to ask about their services. You can ask friends and relatives, or you can go to the government to ask about the reputation of those insurance companies before making a decision.

Remind everyone that car liability insurance (Liability coverage) is not only required to be purchased by US law but also very important insurance. Because when a car accident occurs, this insurance is used to compensate the innocent party’s loss, including physical and material, and legally necessary expenses. Consumers should therefore take the time to understand the terms of their auto insurance to not only save money but also protect themselves.

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