Texas

Auto insurance rates were expected to rise in 2023, but unforeseen issues are adding to the cost.

SAN ANTONIO “Car owners can expect a costly surprise when it comes time to renew their insurance.

The rate hike was expected to be in line with the 2018 trend, Texas Insurance Board officials said.

“If we remember a car from 10-15 years ago, the bumper was a piece of steel screwed to another piece of steel. Now you have plastic over steel with five sensors and a rearview camera,” said Rich Johnson, director of communications for the Texas Insurance Board.

Texas Insurance Board Director of Public Affairs Rich Johnson told KSAT they expect an improved product of what’s on the roads to cost more. They left out the pandemic, supply chain issues, and labor shortages.

Supply chain problems cause problems such as getting car parts. In addition, labor shortages make it harder to get employees to do certain repairs, which increases the time it might take someone to drive a rental car. These factors add to what the insurance company covers.

“This is something we haven’t seen. It’s something else. In 2022, we saw an increase of around 20%. I think in 2023 there will probably be a little more … I don’t want to give a specific number because I don’t know it yet,” Johnson said.

AND research firm Valuepenguin Auto insurance in the states is expected to grow by 8.4% this year.

“I actually just bought a new car and when I switched to new insurance it almost doubled,” said Cameron Tubb, a man who recently changed insurance.

Tubb said he only found out about the increased rates because of his new account. Others, like Jesse Arias, have heard of it but never seen it.

“One more thing in life is going up. I mean, things are going wrong in life right now. I mean, you talk about food, you talk about walking,” Arias said.

Rich Johnson of the Texas Insurance Board says people can try to save money by shopping around and adjusting deductibles with the help of insurance specialists. If you have a student with good grades, let us know and see if the Defensive Driving Course is eligible for a discount.

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