Why You Might See a Large Increase on Your Auto Insurance Rates This Renewal

Insurance companies all over Texas are increasing auto insurance rates this year. Unfortunately, whether or not you’ve had a claim or received a ticket are no longer the only factors that determine your renewal rate. One of the reasons renewal rates are increasing in the DFW area is the number of severe storms we’ve had recently. In fact, Texans filed more weather-related insurance claims in 2016 than any year in history! 1

So what else is causing these increases?

Auto renewal increase trends

Source: Safeco Now

More miles driven.

More miles driven means more cars on the road. This means a higher probability of accidents occurring. There was a 3.5% increase in the number of miles driven in 2015 over 2014. That’s the largest annual increase in 25 years in the U.S.! 2

Increase in traffic deaths.

Traffic deaths increased by 22% from 2000 to 2014. The increase in traffic deaths goes hand-in-hand with the increase in accident severity. Because of this, claims are more costly. 2

Rising bodily injury costs.

The average cost of bodily injury claims rose 32.1% from 2005 to 2013. As mentioned above, part of this increase in cost is due to the increased severity of the accidents. Also, the cost of medical care is rising. 2

More new cars sold.

In 2015, there was a 5.7% increase in new car sales. In fact, new car sales totaled around 17.5 million vehicles – a new record! Newer cars are more expensive to repair and replace because of technology. What used to be a simple bumper replacement, now involves replacing costly sensors and cameras. 2

High rates of distracted driving.

Drivers are more distracted than ever. According to the National Safety Council, 1 in 4 car crashes involve cell phone use. AAA reported:

  • 87% of drivers engaged in some kind of risky behavior
  • 70% of drivers talk on the cell phone while driving
  • 42% of drivers read texts or emails while driving 2

So how do these statistics affect you?

You guessed it: Insurance carriers are passing the costs down to consumers. Unfortunately, some insurance carriers are seeing increases of $200 – $500, or 7-9% per year! 1

If you’ve received an increase on your renewal and would like to see if there are better options out there for you, we’re here to help! We’ll do all the heavy lifting for you – you won’t have to lift a finger! We’ll work hard to find the best option for you. We’ll even tell you if staying with your current insurance company is your best bet.

As an Alkali client, you’ll have peace of mind that you have the best option for you, because we go to market for you every year, and save you money year-after-year.

If you’d like to learn more, contact us at (972) 673-0045.

1 North Texas seeing car insurance rates spike
2 5 statistics that illustrate the current state of the auto industry

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