Texas Auto Insurance Claims Increase by 50% Due to Weather
A new report released by Allstate Insurance revealed that auto insurance claims due to bad weather increased by 50 percent in Texas. According to the auto insurer, the largest increases in auto insurance claims from 2008 to 2009 were in the cities of Houston, El Paso and Lubbock.
Auto Insurance Claims Caused by Hail, Wind and Floods
Texas saw its fair share of bad weather in 2009 and that weather resulted in a significant amount of damage for the state. According to Allstate, which is the second largest auto insurance company in the state, much of the damage and resulting auto insurance claims were the cause of hail, wind and floods.
In total, Texas saw $2.45 billion in catastrophic losses in 2009. This is the highest total in the nation and represented 23 percent of the $10.58 billion in catastrophic losses seen nationwide, according to Allstate.
High Insurance Claims Could Increase Insurance Rates
The increase in auto insurance claims could eventually have an adverse effect on auto insurance rates in the area. Because companies like Allstate will find themselves on the hook for billions of dollars in coverage, premiums across the board could increase in the months to come.
Unfortunately, Allstate agent Catalina Palma, who was interviewed by ABC News, doesn’t expect any change to come this year. “We know every year that we’re going to see severe storms packing hail, wind and rain,” she said.
Not great news for auto insurers or customers.