Despite recent bans and continuous warnings from the region, (not to mention safer cars and highways), accidents are still rising, which are mainly caused by texting and driving. Accordingly, this became one of the primary reasons for the price hike for the auto insurance rates, notwithstanding the fact that many insurance companies have faced thousands of claims because of the damage done by severe storms like Hurricane Harvey. So if you’re paying high insurance premium for your car last year, unfortunately, the trend is likely to continue in the years to come. Better save up more money or choose wisely.
This summer, the Texan state has passed the law to become the 47th state to forbid texting and driving. Hence, the premiums would now be spiking to its peak. Considering the recent data that reported 110, 000 accidents caused by distracted driving, the insurance rates this year is pretty much upsetting. From 2014 to 2015, the auto insurance premium has dramatically increased up to 7 percent, based on the data given by the National Association of Insurance Commissioners. With this accident upsurge, many auto insurers have accumulated losses. To combat the loss, insurance companies have to increase the auto premiums. The increase would be a concern in the next few years, especially for minimum wage workers.
But aside from this ground, the Texas insurance system will soon take into account the number of storms, as well as the magnitude of each, so that it will be more practical for both parties. There will be, of course, higher rates for flood-prone areas, but as to how much would be the increase is still be unclear because of the major adjustments. As of now, it is still in the planning phase and the insurance market is collecting all needed information for this sizable changes. It will be a long process to prove that the skyrocketing rates are justifiable to every car owner.
And just how premiums will rise depending on the added factors, the usual underwriting elements such as your age, the place you reside, the car you drive and your driving record— will still largely affect your insurance premiums. These factors are the primary risks of the varying premium per owner.
But even if there will be a drastic increase in the auto insurance premiums for the next years, don’t worry because there are lots of insurers that still provide you with the most competitive rates like us here at Cheapest Auto Insurance. With over 30 years in the insurance industry, we have quoted more than 30 companies search for the best rates for you. Auto insurance is a must, and it shouldn’t be a burden because life itself is not one. And with an insurance company that gives you some of the most affordable insurance premiums, you might end up saving instead of increasing your premiums. Check us out today.