Auto Insurance Rates Up 10% in Dallas, TX

Posted in Auto Insurance

September 17th, 2009

Dallas drivers are grappling with the unfortunate news that their insurance rates have skyrocketed -in some cases by double digits -in just one year. According to a recent report from the Texas Department of Insurance, liability coverage rates from the top 25 insurer groups in Texas have increased by more than 10 percent in Dallas County and surrounding areas. While some drivers only purchase liability coverage, others purchase a more comprehensive coverage. In the latter scenario, their liability portion of the premium will represent about half of their entire premium.

The reasons that rates in the Dallas area have increased are similar tothe reasons other cities around the country see increases. For one, medical charges for those injured in accidents have outstripped the inflation rate in the past few years. According to one industry spokesperson, hospital charges and physician fees have a huge influence on how much insurance costs.

Poor returns on insurance company investments, accordingto the Public Insurance Counsel, appear to be another reason for premium rate hikes. Additionally, major property losses in 2008 – especially in coastal states – have affected the cost of insurance.

The good news is whether you’re in Dallas or another part of the country, you most likely cantake advantage of discounts and special programs to help lower the cost of coverage. For instance,insurance companies like GMAC, offers a “pay as you go” insurance program that allow policyholders to pay for their coverage only based on the number of miles they drive.

If you’re having a difficult time getting auto insurance quotes – be sure to search online, you may be able to find some great rates. This way you can try to combat insurance rate hikes and find the best premium for you.