What is driving up car insurance costs?

DALLAS (CBSDFW.COM) – The next time you buy or renew your auto insurance, there’s a good chance you’ll end up paying more.

Matthew Montemayor is already paying more for gas and now for car insurance too.

“I think my insurance from last year to this year has gone up another $100,” he said. “I think I’m paying about $380 a month just for car insurance.”

“I’ve heard from most of my major carriers and they’re raising auto insurance rates,” said DFW Insurance Services owner James Baker.

Baker’s Company is a local directory of the best insurance agents in the North Texas area. He said that in general, locally, rates have gone up between 10% and 15%.

“It’s starting to be inflation, but there have been a number of things going on behind the scenes before inflation becomes an issue,” he said.

  • Supply and demand problems
  • Car, rental car and repair costs increase
  • traffic density
  • Your entire claim history plays into this.

“So there are actually a plethora of issues that are driving rates up,” Baker said.

In its 2022 The State of Auto Insurance report, The Zebra, an Austin-based insurance comparison site, said you can:

  • Save 27% buying a used car
  • Save 17% by increasing your credit score
  • Save 10% buying your policy in advance; paying in full and online

Baker recommended using a telematics program that collects information about your driving habits. There are several available as an app on his phone.

“Connect a driving module for 90 days, prove to the company that you’re a safe driver and you’ll get a discounted rate for it,” he said. “I have companies where you can earn up to 30%.”

Looking ahead to next year, Montemayor said he is making some changes.

“I definitely think I’ll try to pay at least the first six months up front,” he said. “I’ll probably shop around and see if I can get any discounts by taking a defensive driving course.”

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