What's driving up auto insurance costs?
DALLAS (CBSDFW.COM) - The next time you go to purchase or renew your auto insurance — there's a good chance you'll end up paying more.
Matthew Montemayor is already paying more for gas and now, auto insurance as well.
"I think my insurance from last year to this year has gone up by another $100," he said. "I think I'm paying close to $380 a month just for car insurance."
"I have heard from most all of my major companies and they are raising rates on car insurance," DFW Insurance Services Owner James Baker said.
Baker's company is a local directory for the best insurance agents in the North Texas area. He said across the board, locally, rates have gone up about 10-15%.
"It is starting to be inflation, but there's been a series of things going on behind the scenes before inflation became an issue," he said.
- Supply and demand issues
- Car, rental car and repair costs all going up
- Traffic density
- Your claims history all playing into this.
"So there's really just a plethora of issues that are driving rates up," Baker said.
In its 2022 The State of Auto Insurance report, The Zebra, an insurance comparison site headquartered in Austin, 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; paying in full and online
Baker recommended using a telematics program that collects information about your driving habits. There are several available in app form on your phone.
"Plug in a driving module for 90 days, show the company that you're a safe driver and you get a discounted rate for that," he said. "I have companies where you can earn up to 30%."
Heading into next year, Montemayor said he's making some changes.
"I definitely think I'll try to at least pay for the first six months up front," he said. "I'll probably be comparing rates and seeing if I can get any discount doing a defensive driving course."
