Auto insurance

What drives up auto 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 already pays more for gas and now also for car insurance.

“I think my insurance from last year to this year went up another $100,” he said. “I think I pay close to $380 a month just for auto insurance.”

“I’ve heard of most of my big companies and they’re raising car insurance rates,” said James Baker, owner of DFW Insurance Services.

Baker’s company is a local directory of top insurance agents in the North Texas area. He said that overall, locally, rates have gone up about 10 to 15 percent.

“It’s starting to be inflation, but there were a series of things happening behind the scenes before inflation became a problem,” he said.

  • Supply and demand issues
  • Car, car rental and repair costs all increase
  • Traffic density
  • Your claims history plays a role in all of this.

“So there’s really just a plethora of issues driving up rates,” Baker said.

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

  • Save 27% by buying a used car
  • Save 17% by increasing your credit score
  • Save 10% by purchasing your policy in advance; pay 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 your phone.

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

Heading into next year, Montemayor said he is making some changes.

“I really think I’ll try to pay at least the first six months upfront,” he said. “I’ll probably compare rates and see if I can get a discount by taking a defensive driving course.”