The Zebra, a digital platform facilitating insurance policy comparisons, announced on Jan. 21 that drivers in Texas experienced an average surge of 25% in their car insurance rates between 2022 and 2023. This rate hike was greater than the inflation rate within the auto insurance industry, yet it fell short of the increases witnessed in several other states.
According to The Zebra, various factors have contributed to the escalating costs of car insurance. These include increased prices for vehicle repairs, extreme weather events, a rise in vehicle thefts, an influx of uninsured drivers, and a higher number of litigated claims following accidents. States that recorded more substantial car insurance rate increases in 2023 than Texas encompass Georgia (29%), New York (36%), and New Jersey (40%). Meanwhile, several states such as Idaho registered decreases in car insurance rates (-11%).
Bankrate reports that drivers in Austin are paying roughly 6% less than the Texas state-wide average for a full coverage premium at $1,894. Conversely, drivers in Dallas and Houston are paying 7% and 10% more than the state average respectively. According to Bankrate's findings, Texas car insurance rates align closely with the national average.
The Bureau of Labor Statistics' most recent Consumer Price Index (CPI) report released on Jan. 11 revealed that motor vehicle insurance costs have outpaced the overall inflation rate. The report stated that overall inflation for the twelve-month period ending in December 2023 stood at 3.4%, while auto insurance costs rose by a significant 20.3% during this same period.
Established in 2012 with an aim to streamline the process of selecting insurance policies for consumers, The Zebra uses an algorithm to compare over one hundred insurance providers based on customer information and recommends policies best suited to individual needs. Keith Melnick serves as CEO of The Zebra.