By Sibashree Bhattacharya
Two weeks ago, a pedestrian was hit by a truck while crossing the road in Longview. Now, this is not a standalone case of a traffic accident in Longview.
Then, is the rising number of traffic accidents the cause behind the rising auto insurance rates in Longview? Yes, of course.
However, it is not the only reason behind the high auto insurance rates in Longview. A greater number of litigations, severe weather conditions, and higher minimum requirements for coverage are some other major reasons.
Additionally, considering the auto insurance rates in the USA, they have increased by 56% since January 2020. So, though the Bureau of Labor Statistics (BLS) data shows a 6% increase in car insurance rates, the charges remain on the higher side.
In fact, auto insurance charges in Texas are higher than the national average by 18%.
Hi, in today’s blog, we will discuss why the car insurance Longview TX charges are higher.
Why Are Auto Insurance Rates Getting Higher In Longview, Texas?
We have done a thorough analysis of the auto insurance market in Longview, Texas. Based on the data we found and the patterns we noticed, these are the common reasons behind the rising auto insurance rates.
1. More Litigation
The higher number of litigations, with people becoming more aware of their rights in accident claims, has contributed to a rise in auto insurance rates.
In fact, Triple I, or the Insurance Information Institute, has highlighted how the abuse of legal systems has been a concerning factor in policy premiums going up.
It says,
“Triple-I defines legal system abuse as policyholder or plaintiff attorney practices that increase costs and time to settle insurance claims. While litigation is generally considered a policyholder’s last resort, legal system abuse can occur when a disputed claim could have been resolved without judicial intervention.”
Sometimes, there are also third-party litigations, raising the amount of claims. A rise in the amount of auto insurance claims increases auto insurance rates.
2. Claims Are Becoming More Severe
I was going through the 2024 Auto Insurance Trends Report of LexisNexis Risk Solutions. The report clearly shows how the claims for auto insurance are rising.
Further, the report has highlighted the following changes or increases since 2020.
- A 29% rise in the claim of loss.
- There has been a 47% rise in the claims for the severity of material damages.
- A 20% increase in the severity of bodily injury.
3. The Vehicle Repair Costs Are Going Up
Issues in the vehicle supply chain system and a shortage of labor have triggered an enormous rise in the pricing of cars and car repairs.
Also, cars today have more sophisticated features, such as ADAS or advanced driver assistance systems. These systems ensure the safety of the drivers.
However, these can also make the engineering and repair of a car more expensive.
The rising price has directly impacted the auto insurance industry and resulted in a sharp rise in car premium pricing.
4. Driving Has Become Riskier
What happens when driving becomes riskier? The immediate impacts are that it increases the chances of road accidents and compromises safety.
However, there is another indirect or long-term impact of driving becoming riskier. If an insurer finds out that you practice risky driving, they will set a higher price for your insurance.
Cases of accidents at fault, speeding tickets, driving under the influence, or DUI violations are some factors that establish a risky driving habit.
A 2023 report from LexisNexis highlighted how driving had become dangerous.
- DUI violations in the first six months of 2023 were 8% more than the same period of 2022.
- Minor speeding accidents went up by 16%.
- Major speeding accidents went up by 10%.
- Moving and non-moving violations were up by 4%.
5. Severe Weather Conditions
Hurricanes, wildfires, floods, and storms are common in Texas. Being prone to natural disasters, the state also faces higher risks of vehicle damage or car accidents.
On the other hand, comprehensive car insurance coverage includes damages caused to your car by storms, fire, flooding, hailstorms, and more.
6. The Minimum Requirements Are Higher
You need to have liability coverage in Texas. When you meet with a car accident, and you are at fault, you will have to pay for the repair of your car and the other person’s car.
Medical bills are also included in this coverage.
Moreover, these are the standard coverage amounts for car accidents in Texas.
- $25,000 for property damage
- $30,000 for injuries per individual
- $60,000 for injuries per accident.
7. Number Of Accidents Going Up
Texas recorded a 3.8% car crash rate in 2024. It may not be the highest in the state. However, it is definitely one of the states known for rash driving and traffic irregularities due to a high population density.
So, when the number of car crashes increases, insurance companies receive more claims from the injured people.
Insurance companies increase the auto insurance rates considering these risks.
8. High Population Density
Texas is the second-most populous state in the USA. Furthermore, the urban population in the state is way higher than the national average.
People in urban areas pay higher insurance charges as urban roads are more prone to traffic congestion, car accidents, and greater risks of vandalism and robbery.
9. Higher Speed Limit
Do you know that the average allowable speed on the fastest highway in Texas is 75 MPH? Also, the highway, even the fastest in the USA, has a speed limit of 85 MPH.
It is easy to blur the line between high speeds and overspeeding. So, in Texas, there are higher chances of paying liability charges.
10. Long Travel Hours And Driving Needs
More than 70% of the people in Texas rely on car drives for traveling to work. Additionally, on average, they need to ride for 30 minutes to commute to their workspace from home.
Furthermore, you need to drive more in Texas, regardless of whether you are in a rural or urban area. So, with greater reliance on car rides, it is established that you need to spend more time on the road.
Spending more time on the road also indicates a higher chance of an accident. Thus, the auto insurance rate goes up.
How Can You Save Money Despite The High Auto Insurance Rates In Longview, TX?
I was having a word with the insurance experts at Go Auto Insurance. I asked them, “How can we deal with the rising auto insurance rates?”
The team unanimously suggested that we should opt for a policy that does not include commissions for the agents, hidden fees, or a very stringent premium policy.
In fact, you must buy a policy that offers you a customized payment plan, including the facility to choose the date of the payment.
Above all, make sure that you are comfortable with the down payments while choosing your insurance policy.
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