HOUSTON — If your car insurance has gone up lately, you are not alone.
According to the Texas Department of Insurance, rates climbed 25.5% in 2023. Bankrate estimates the average annual premium this year in the Lone Star state is $2,620, up from $2,019 last year. Similar -- but not quite as steep -- increases are being seen nationwide and the trend is expected to continue.
So what is causing the jump?
According to the San Antonio Express News, there are several factors driving the change. The price of used and new vehicles skyrocketed over the pandemic, which means replacing a totaled car became more expensive for insurance agencies.
Also, thanks to supply chain disruptions, parts to repair a vehicle went up in price. Plus, thanks to a labor shortage, the labor to do those repairs got more expensive.
That all adds up to drivers paying more to insure their vehicles.
When it comes to saving money, experts are recommending you shop around. J.D. Power reported March was the most active month for shopping for insurance since they started collecting that data four years ago.
And don’t just compare the base price -- ask insurers what discounts they have. You could even consider an insurer that tracks your driving behavior rewarding safe drivers.