If your latest renewal notice made you look twice, you’re not alone. Drivers across Texas are seeing noticeable increases in car insurance premiums, even when nothing obvious has changed in their own driving record.
It can feel frustrating when you have not had any tickets or accidents, yet your bill still climbs. The reality is that your rate is influenced both by your personal history and by broader trends in Texas and across the insurance industry.
Understanding what is driving these changes can help you make informed decisions about your coverage instead of just accepting the increase or cutting important protection you might need.
The Rising Cost of Vehicle Repairs
One of the primary drivers of rate increases is inflation, specifically regarding the cost to repair modern vehicles. Cars are safer and more efficient than ever, but that technology comes with a price tag.
A decade ago, a minor fender bender might have required a simple bumper replacement. Today, that same bumper is likely embedded with parking sensors, backup cameras, and radar for lane-keep assist systems. Replacing it requires not just new parts, but also specialized labor to recalibrate the electronics.
Supply chain disruptions have made parts scarcer and more expensive. Labor rates for skilled mechanics have also risen. When an insurance company pays a claim today, it costs significantly more than it did just two years ago. These increased costs for the insurance carrier are passed down to the consumer in the form of higher premiums.
Texas Weather Patterns and Catastrophic Claims
Texas is a wonderful place to live, but it presents a unique challenge for insurance companies due to its volatile weather. The state faces exposure to hurricanes along the coast, severe convective storms, flooding, and, most notably, hail.
Hail damage is a massive expense for auto insurers in Texas. A single storm moving through a populated area like Dallas, Austin, or San Antonio can cause hundreds of millions of dollars in damage in a matter of minutes. Even if your specific vehicle was parked safely in a garage during the last storm, the massive payout the insurance company had to make for thousands of other vehicles in your region affects the overall risk pool.
Increased Accident Severity and Frequency
Since the pandemic, driving habits have shifted. Data indicates that while the total number of miles driven has returned to normal levels, the severity of accidents has increased. Traffic data shows an increase in speeding and distracted driving.
When accidents happen at higher speeds, the damage is more extensive. This leads to higher payouts for total losses and vehicle repairs. More importantly, it leads to higher medical costs and liability claims for bodily injury. Medical inflation generally outpaces standard inflation, meaning the cost to treat injuries from car accidents has skyrocketed. As liability claims get more expensive, liability premiums must rise to match.
The Impact of Uninsured Motorists
Texas has a significant number of uninsured or underinsured drivers on the road. When an insured driver is hit by someone with no coverage, the insured driver’s policy often picks up the tab through Uninsured Motorist coverage or Collision coverage.
This creates a hidden tax on responsible drivers. Because insurance companies know there is a high statistical probability of their customers being hit by someone without insurance, they must factor this risk into the base rates for the state.
The “Rate Revision” Process
It’s important to understand that insurance companies cannot simply raise rates on a whim. In Texas, they must file rate revisions with the state Department of Insurance. They present data showing that their current rates are not sufficient to cover the projected cost of claims.
In recent years, almost every major carrier has filed for these increases. They’re trying to reach “rate adequacy,” which means charging a premium that accurately reflects the current cost of doing business. If a company is paying out $1.10 in claims and expenses for every $1.00 they collect in premiums, they are operating at a loss. They must raise rates to become profitable and solvent again so they can pay future claims.
Enough Stats: Why YOUR Rate Might Have Gone Up
Even within broader market trends, there are personal factors that can change your price from one term to the next.
Some common reasons include:
Changes in Your Driving Record
- Recent speeding tickets, at fault accidents, or claims can increase your rate
- Even small claims, like glass or towing, add to your overall claims history
In some cases, older violations may have dropped off, but newer ones have taken their place.
Adjustments to Your Coverage or Vehicles
- Adding a newer or more expensive vehicle
- Adding a youthful driver to the policy
- Lowering your deductible, which shifts more of the risk to the insurer
- Adding optional coverages like rental reimbursement or roadside assistance
These are all valid choices, but they do affect your bottom line.
Territory or Mileage Changes
- Moving to a new ZIP code with higher claim frequency or theft rates
- Driving more miles per year due to job or lifestyle changes
Insurers view more time on the road as more exposure to potential loss.
Credit Based Insurance Scores
In Texas, many companies legally use a credit-based insurance score as part of their ratings. If your credit profile changes, your insurance score could be adjusted at renewal, which may increase or decrease your premium depending on the direction of the change.
Company Wide Rate Revisions
Sometimes, you may see an increase simply because your insurer adjusted their base rates in Texas to reflect rising claim costs. This can affect even drivers with clean records.
What You Can Do to Help Manage Your Auto Premium
You cannot control industry trends or the cost of parts, but you do have options.
Review Your Coverage, Not Just the Price
Sit down with an agent and go through:
- Liability limits
- Comprehensive and collision coverage
- Deductible levels
- Optional coverages that may or may not still fit your needs
In some cases, it may make sense to raise deductibles or adjust coverages on older, paid off vehicles. In other cases, you might find you are underinsured and need to increase protection even if it costs a bit more.
Ask About Discounts
Make sure you are getting credit for everything you qualify for:
- Multi car and multi policy discounts
- Safe driver or claims free discounts
- Good student discounts for teen drivers
- Telematics or usage-based programs, if you’re comfortable with them
- Vehicle safety and anti-theft features
Keep Claims for True Losses
Using your insurance for every small scratch or minor issue can lead to higher premiums over time. When possible, consider paying out of pocket for very small losses and reserving your coverage for more significant events. Always talk to your agent before filing a claim if you are unsure.
Improve Your Risk Profile Over Time
- Maintain a clean driving record
- Limit distracted driving
- Park in a garage or secure area when possible
- Address credit health where it’s under your control
These are long term strategies, but they can improve your insurability and pricing options over several renewal cycles.
Why Working with a Local Agent Helps in Times Like These
When rates go up everywhere, having a local agent in your corner becomes more valuable.
The Matt Patterson Agency can:
- Explain exactly which factors affected your specific renewal
- Compare coverage and pricing with multiple carriers, if they’re independent
- Help you adjust coverage intelligently instead of just guessing
- Make sure you are taking advantage of all appropriate discounts
- Suggest timing strategies, for example, when it might make sense to reshuffle vehicles or drivers on your policy
Instead of reacting to a higher bill with frustration, you can approach it as a chance to make sure your coverage still matches your life today.
FAQs
Why did my car insurance go up even though I have a perfect driving record?
Even with a clean record, your premium can increase due to external factors such as higher repair and medical costs, more severe weather events, and company wide rate adjustments in Texas. Your individual history is only one part of the equation. Insurers also price based on the overall cost of claims they’re seeing in your area and across their entire Texas book of business.
Will my rates go down if I reduce my coverage?
Dropping coverage can lower your monthly bill, but it increases your financial risk. For example, dropping Comprehensive coverage removes protection against hail and theft. Lowering your liability limits puts your personal assets at risk if you are sued. A better way to lower costs without sacrificing protection is to consider raising your deductibles.
Is this happening only in Texas?
No, this is a nationwide trend. Inflation and supply chain issues affect the entire country. However, Texas drivers often see sharper increases due to the specific weather risks and high population density in major metro areas compared to states with milder climates and less traffic.
How can I lower my insurance premium?
There are several strategies. First, ensure you are getting all available discounts, such as bundling your auto and home insurance, taking a defensive driving course, or utilizing telematics (safe driving apps). Second, review your deductibles. Finally, work with an independent agent to shop your policy. Rates vary wildly between carriers, and loyalty to one company does not always pay off in a hard market.
Navigating a Hard Market with an Expert
Seeing your auto insurance rate climb this year is understandably frustrating, but it’s often a reflection of larger forces rather than something you did wrong. The important thing is how you respond.
Use the renewal as an opportunity to:
- Confirm that your coverage still matches your needs
- Look for ways to improve your risk profile and qualify for more discounts
- Ask questions and get clear explanations from a professional who works with these policies every day
With good information and guidance from the agents at Matt Patterson, you can make smart adjustments rather than simply paying more or cutting important protection.
