The Texas Insurance News Daily! Texas Auto Insurance and Home Insurance News!

AMARILLO, TEXAS -- According to a new study by the National Association of Insurance Commissioners, Texas auto insurance premiums are among the highest in the country.

The report shows state-by-state data given to insurance regulators, policymakers and consumers.

State Representative John Smithee said the Texas insurance rates are pretty good right now, but the large amount of urban area in the state is a big factor causing auto insurance premiums to be on the rise. More people in an area result in more traffic accidents, and with the current inflationary trends increasing the prices of vehicles, the cost of repairing them is going up, as well.

"The things that we have to watch are number one- the cost of repairs," Smithee said. "The other thing is medical care and the cost of medical care because that can be a driver in higher rates."

Fortunately for drivers, insurance companies constantly compete with one another to gain customers.

"What we're primarily interested in here in Texas is to make sure that we continue to have a competitive market," stated Smithee. "In other words, we have carriers that will come in and write if some carriers raise their price higher than what would be indicated."

One local auto insurance customer has been with the same insurance company for nearly 12 years and she said she does not mind paying the higher premium as long as her company takes care of her. She would rather pay a higher cost and be protected than switch to another company or go without insurance.

"I have considered it, but with the research I've done I have the best deal where I'm at now," La Rhonda Lee said. "The longer you're with a company, the better discounts you do get."

Texas Pressures Auto Insurance Policy Requirements Statewide

Texas police are taking a stand against drivers with no car insurance policy. Because having liability car insurance is required by law in the state of Texas, some cities are adopting a “no tolerance” policy.

In 2009, the state of Texas linked its vehicle registrations with Texas auto insurance policies to verify coverage in a program called TexasSure. According to the data collected by this program, more than 23% of drivers across the state are uninsured.

Efforts to combat uninsured motorists include heavy fines for those caught without Houston auto insurance coverage. For a first offense, the fine ranges from $175 to $350. The fine jumps dramatically for a second offense to as much as $1,000, and the driver’s license will be suspended. On top of these penalties, drivers without insurance must pay a surcharge of $250 each year for 3 years to maintain their driver’s license.

Texas Auto Insurance Report: Market is Competitive, Rates Stable

The Texas auto insurance market has seen greater competition, stable costs and fewer drivers enrolled in the state-run assigned risk program in recent years, according to the biennial report released by the Texas Department of Insurance (TDI).

Nine new insurers entered the Lone Star State's coverage market between the beginning of 2009 and the end of 2010, and 22 existing insurers filed for new coverage products.

The increased competition should maintain the availability of cheap auto insurance in Texas, especially after the minimum limit requirements were increased at the turn of the new year. The commissioner told one media outlet that, as a result of the change, premiums may rise by 2 percent to 3 percent for motorists carrying only the state's minimum liability coverage.

Fewer Auto-Insurance Claims In 2010, Yet Premiums Are Rising

Average Texas auto insurance premiums for U.S. families have fallen for five straight years through 2009, yet rates have risen slightly in some parts of the country in 2010. And that goes against a host of indicators that you think would actually be lowering rates. According to the New York Times, there's been little growth in how much we drive; unemployed drivers are using their cars less than before (likely less than they're still paying for in their premiums); and there's been a drop in the frequency of accidents. And while medical-care costs and car-repair expenses have risen, tort reform has limited the amount of accident-related legal expenses.

Auto insurance prices driven up in 2011

The start of the new year means Texas auto insurance rates for more than half of Texas drivers are going up.

A law passed back in 2007, mandates insurance companies raise their premiums.

That means starting Jan. 1, those who have minimum liability insurance will be paying 2- to 3 percent more on their premium. More than 7.5 million Texas drivers will be affected.

The numbers do not include the impact on millions of people who lost their jobs and health insurance after the recession began in December 2007.

The 2007 snapshot shows that Massachusetts, which has achieved near-universal coverage, had the lowest rate of uninsured people under age 65, about 7.8 percent. States with the highest rates of uninsured were in the South and West: Texas was at the top, with 26.8 percent, followed by New Mexico (26.7 percent) and Florida (24.2 percent)...

If only vehicles registered in the Rio Grande Valley filled the roadways, drivers would have a three-in-10 chance of encountering an uninsured driver, according to the state's insurance regulator.

Almost one-third of the drivers in Cameron County do not have automobile insurance, making the county second in the state for percentage of uninsured motorists...

For the first time in Texas auto insurance Plan Association history a public member has been elected to lead the organization’s board.

The Insurance Council of Texas (ICT) and the College Station Police Department are expanding a crime prevention campaign aimed at preventing auto thefts and auto burglaries. The program involves the funding and distribution of signs that read, “LOCK your car, TAKE your keys and HIDE your belongings.”...