AUSTIN – Drivers in the Dallas area have seen their insurance rates jump by double digits from a year ago, while homeowners have seen a more modest increase of around 5 percent, according to new rate figures compiled by the Texas Department of Insurance.
The figures, based on mandatory rate filings by the top 25 insurer groups in Texas, showed that the cost of liability coverage for drivers jumped more than 10 percent in most parts of Dallas County and surrounding areas. Liability coverage makes up about half the premium for a typical auto policy.
In six Dallas County ZIP codes – North Dallas, South Dallas, Duncanville, Garland, Irving and Richardson – the average annual rates for liability coverage ranged from $556 to $574 for a married male driver age 25 to 65 who uses his car to drive to and from work. The figure reflects an average credit rating and no traffic violations.
The rate comparisons indicated a wide range of rates, with one company charging as little as $230 in Irving and another company charging as much as $1,215 in all six ZIP codes.
Insurance industry representatives said the higher rates reflect medical costs that have gone up sharply despite the slow economy and relatively low inflation. Consumer groups said the increases are excessive and unwarranted, and in some cases resulted from poor returns on insurer investments in the stock market.
"I can't fathom any justification for such an increase," said Alex Winslow of Texas Watch, a consumer group that is active in insurance issues. "A double-digit increase in one year is a lot, particularly in tough economic times."
2 comments:
The larger increases for auto insurance may come as a surprise to some Texans, who have been hit harder by home insurance premiums in recent years.
PA Auto Insurance
There are annual increase too in some states. Texas is just part of them whatever the reason may be.
Sell Life Insurance
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