Why Insurance Rates Continue to Rise in Texas

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Many motorists across the United States, including Texas, are proud of the fact they have rarely made a claim on their insurance, and they pride themselves on being safe drivers. However, these same motorists are then dismayed to discover that their insurance premiums continue to rise, with provider raising the rates year on year.

If you live in Texas, you may have noticed your car insurance premiums rising even though you have a solid driving record, have no filed claims, and have been a loyal customer with the insurance company for many years. Well, the one thing you have to remember is there are many other motorists that are also insured on that policy, and unfair as it may seem, their claims and issues have a direct impact on your insurance premiums as well as all others insured on that policy.

Losses Faced by Insurance Companies

Several years ago, car insurance companies found themselves in a situation whereby they were paying out more in claims than they were bringing in from policy payments. This is known as a loss ratio and some companies faced loss ratios of 112 percent or more. In fact, only several insurance companies at that time were at less than 100 percent loss ratio, and those that were above 100 percent had to take steps to get things back on track.

Unfortunately, these steps involved penalizing everyone that was under the policy, whether or not they had made any claims or experienced any issues. In short, it meant that the actions, claims, accidents, and other issues of other drivers with the insurance company had a direct impact on the premiums of everyone. Understandably, this has become a bitter pill to swallow for the many who drive carefully, have advanced driving experience or training, and have never or rarely made a claim.

What Can You Do?

Naturally, most drivers in Texas have had enough of being tied to the same brush as those that make multiple claims. If you are fed up of paying over the odds to make up for the impact from others’ claims, there are steps you can take. While you may be proud of your loyalty to a particular insurance company, if they are putting your insurance premiums up all the time, this is loyalty that you cannot afford.

With this in mind, it is important to take time to compare auto insurance costs by going online. This is something that you can do with ease if you have internet access at home. In addition, you will find that many insurance companies offer you tempting deals on premiums for the first year just to get you onboard. You should take advantage of this and sign up for the great deals, as you can reassess again in twelve months’ time.

Another thing you can do is try to prove how responsible a motorist you are and how you present a reduced risk to the insurance firm compared to other drivers who are causing everyone’s rates to rise. You can do this in a number of ways, such as making sure you park your vehicle in a garage or on a secure driveway that has CCTV. You can also use modern gadgets to reduce the risk you present to the insurance company, such as dash cams or trackers.

Getting Your Premiums Down

These solutions provide you with a valuable means of helping to get your insurance premiums down, despite the fact that there have been increases due to the amount of claims and the loss ratio that insurance companies have suffered.