That’s right, once again Texas ranks near the top of the list when it comes to the amount paid for auto insurance. According to a new report by the National Association of Insurance Commissioners Texas finished 11th of all 50 states when it comes to insurance premiums. This is good news for insurers and bad news for drivers.
Part of the reason for the higher insurance rates in Texas as compared to some other states is the number of heavily populated urban districts. Insurance rates are determined by the amount paid out by insurance companies in claims. If claims are high then premiums need to be higher so the insurance company is not paying out more than it is taking in. This is simple math. The densely populated urban areas in Texas lead to higher traffic congestion and a larger than average number of vehicle crashes, resulting in insurance companies paying out money.
However, forewarned is forearmed. That means, in order for Texans to see lower insurance rates all they need to do is start driving a little more defensively. By decreasing the number of vehicle crashes in their state, Texans can have a direct impact on the insurance premiums they pay. In this way they control their own destiny. Anyone who knows they need a little extra help when it comes to driving, or knows someone else who does, might want to consider a quick and easy defensive driving course. Because the better drivers all Texans can be, the quicker insurance rates may start to decline.
As cars get more technologically advanced, they get more expensive and the cost of repairing them also goes up, all of which leads to higher insurance rates.
You can’t do much about the price of gas, but you can do something about your insurance premiums; Drive safe.
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