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Car insurance rates skyrocket across Texas

In 2024, several major carriers increased the premium rates. Inflation plays a role, which means even a fender-bender costs more to repair, according to an agent.

ODESSA, Texas — Chris Wray is a State Farm insurance agent based out of Odessa. 

Wray has been in the industry for 15 years, and the car insurance rates are the most expensive rates he's seen so far.

"A lot of the major carriers have been having rate increases last year to try to stay up with the rate inflation," Wray said. "The cost to replace new cars has gone up incredibly, the cost of the cars, the cameras, the sensors that are supposed to keep us safe, those are all more expensive to replace even when you get in a fender-bender."

The sweeping surge of insurance premiums is taking place across the state. According to Wray, it's not just one carrier that's bumped up the prices, it's been widespread across the industry. 

Most of Wray's clients are drivers in the Permian Basin and a disturbing trend in the region has also contributed to increased rates within West Texas. 

"Here in the last six months we've especially seen an uptick in the frequency of accidents," Wray said. "We typically have one or two accident claims a week. Now, we're pretty much seeing one or two reports a day."

The frequency and severity of these accidents has also played a role in this regional price-hike, said Wray. As of Feb. 15, Chris Wray's office is handling 160 open accident insurance claims. But this time last year, it was less than 100. 

"In Texas, the average car insurance rate is $150 dollars," Wray said. "But if you have one or two accidents you're probably looking at paying $250 or more per car."

Here are some things people can do to cut down on their insurance premium.

-Buy and use a dashcam. That way if you get in an accident, you'll have a recording of everything that happened.

-Buy and use a telematic device that records your average speed and overall how safe you are when driving. 

-Improve credit score! it lowers your risk assessment by an insurer.

People can also sign up for a safe driving program regardless of their driving record. This can help demonstrate safe driving habits and get people some discounts for it.

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