AUSTIN, Texas — Car insurance rates are on the rise, and as Central Texas continues to grow, experts say prices will only get higher.
"Austin is getting so crowded," said Nicole Beck, The Zebra head of communications. "So, when you have that many people on the road getting in accidents, getting into fender benders, even people from out of town coming to visit, all that plays a part in what we in Austin pay."
Ajatshatru Dhawal is an Austin resident who recently added a new driver to his insurance plan.
"I have two kids on my insurance, said Bhawal. "I have a teenage daughter, you know, she's a high-schooler. I have her, and then I have a son who's 21. So obviously it's pretty hard in the pocket."
Dhawal said he started paying for his teenage daughter's insurance during the pandemic when car insurance rates were also on the rise.
Beck said when comparing 2020 rates to 2021, car insurance rates are up by about 6%.
"When insurance companies raise prices, it's a signal that they've paid out a lot of claims in the area," said Beck. "So, you can pay claims for a number of reasons – accidents, theft, damage to a vehicle, even weather events, things like hurricanes or hail."
Roseanne Guthrie at Anco Insurance said she's seen double-digit percent increases. One of the reasons behind this is the shortage of parts and labor during the pandemic.
"A hail claim on auto for dentless paint repair pre-pandemic could have been $2,000 to $4,000," said Guthrie. "[Now] the same claim is $7,000 to $8,000."
However, there are more reasons why. The stark rise in car-related thefts, damage from winter storms, the amount of time it's taking cars to get fixed and the limited stock in rental cars are all driving factors.
The Zebra provided us with these numbers. Drivers in the following ZIP codes pay the most for car insurance in Austin:
- 78744 ($1,694)
- 78653 ($1,690)
- 78617 ($1,689)
- 78719 ($1,688)
- 78721 ($1,687)
Drivers in these suburbs pay the least:
- 78633 Georgetown ($1,414)
- 76574 Taylor ($1,435)
- 78665 Round Rock ($1,456)
- 78631 Harper ($1,462)
- 78952 Plum ($1,467)
Guthrie said cities like Georgetown don't have as high of rates as Austin because they're not as busy. Insurance companies take the number of people driving, the number of accidents and the cost of repair in the area into account.
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