BRYAN, Texas (KBTX) – As inflation rates continue to rise, Texas drivers are feeling the pain with higher insurance rates.
Lance Snider, an insurance agent at State Farm, told KBTX it’s a battle like he’s never seen before in his 13 years with the company.
“Eight percent [increase] is the average around the state,” Snider said. “But, I’ve seen anywhere up to 45% with some companies and I’m seeing closer to 20%.”
This is all due to inflation and supply chain issues. Snider said any sort of business involved in the auto market is a reason rates are rising.
“Vehicles take longer to repair. These costs depend on how long you have paid for your rental car, which also leads to higher rental car prices,” Snider said. “Also just the cost to get materials or labor in general.”
Snider said when he first saw the auto insurance rate hike, he contacted a local auto repair shop and asked what the inventory was like.
“I spoke to a local bodybuilder here and I think that was about 53% of a cost increase. That compares to the last two years to get vehicles working,” Snider said.
Silas Garrett is the owner of George’s Paint & Body in Bryan. Garrett and his wife have run the store for almost 20 years. Over the years he has dealt with many clients and their insurance companies. Recently, he sees the impact of his shop on carrier rates.
“With paint materials increasing, parts materials increasing, labor increasing…we need to collect everything we can get on the repair to make sure your car is fixed in safely,” Garrett said. “The costs combine and create a big problem for some store customers.”
Garrett said auto costs in general are more than 52% of what they were a few years ago, before inflation exploded.
“Years ago, comprehensive deductibles were $100, collision deductibles were $250. Now we were seeing these two…$1,000. It’s all the money out of your pocket.
What worries Garrett the most is not being able to serve his customers properly due to cost issues.
“A lot of people tell us, ‘I want to save money, so I don’t want to fix this part of my car,'” Garrett said. properly repaired.
For more information from State Farm on auto insurance rates, click here.
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