Why Texas Auto Insurance Costs More - Savings Club

Why Texas Auto Insurance Costs More

August / 22 / 2022

Like many people, you’re probably curious as to why Texas auto insurance costs so much more than Minnesota. In this article, we’ll take a closer look at the data and determine what factors contribute most to the higher cost of Insurance in Texas.

Cost of Living

Texas is known for its big cities and wide open spaces. The cost of living in Texas is higher than in most other states. The table below shows the cost of living in selected cities in Texas.

Houston – $25,526

Dallas – $24,748

Austin – $23,584

San Antonio – $21,998

El Paso – $19,539

Corpus Christi – $18,848

Factors that Affect Insurance Rates

Texas auto insurance rates are higher than in most other states because of some factors. Texas has some of the highest rates in the country because of its high traffic fatalities and injuries. Texas also has a high concentration of companies, leading to greater customer competition and higher rates. In addition, Texas has some of the most comprehensive safety laws in the country, which drive up the cost..

Why is Insurance so expensive in Texas?

Insurance rates in Texas are some of the highest in the nation. According to The Houston Chronicle, a comprehensive policy for a driver 20 years old would cost $1,225 with a $50,000 limit per accident and no claims allowed. A similar approach for a resident of Florida would only cost $709 with a $100,000 limit per accident and no shares authorized.

Some factors that contribute to high insurance rates in Texas include:

  1. The state has more car accidents than any other state.
  2. Texas has more uninsured drivers than any other state.
  3. Texas has less regulation of insurance companies than other states.

Solutions to Help Lower Rates

Texas auto insurance rates are some of the highest in the country, but there are ways to save.

First and foremost, shop around for rates. Some resources are available to help you find the best rate for your car and circumstances. One of the most popular resources is Insure.com. This website allows you to compare quotes from multiple insurers and choose the best one for you.

Another way to save on Texas auto insurance is to have uninsured motorist protection (UMP) coverage. This coverage pays for damages that you or someone you’re with causes to another person’s car while driving without Insurance. To be covered, you must have liability insurance that includes UMP coverage.

Finally, make sure you know all your insurance options and use them all! For example, if you have an optional comprehensive and collision policy from your previous insurer, ask your current insurer whether they will honor it. Many insurers will allow you to keep your existing policy with just a few minor changes. It can save you money by combining approaches into one approach and limiting.

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