Need for Affordable Car Insurance Grows in Texas
In Dallas, drivers have experienced a huge car insurance rate hike over the past year. These figures have been revealed by the rate filings from the top insurance providers in Texas, which state that liability coverage has jumped more than 10% in Dallas County since 2008.
The hikes have affected six different ZIP codes within Dallas County: North Dallas, South Dallas, Garland, Duncanville, Richardson and Irving. In these areas, the average rates for liability coverage are close to $560 for male drivers, aged 25 to 65, who only use their car to drive to and from work. However, rate comparisons have shown that auto insurance providers are charging upwards of $1200 for yearly premiums.
Insurance industry officials have stated that this car insurance rate hike is a direct result of medical costs, which have increased over the past year. Although the economy has suffered from a global recession and low inflation, healthcare costs have continued to increase, which has, in turn, affected other industries that depend on these figures. On the other hand, consumer groups call the car insurance rate hikes excessive and unnecessary. Many believe that they are the result of poor returns from insurers stock market investments.
Alex Winslow, spokesperson for consumer group Texas Watch calling for affordable car insurance, has voiced his disgust "I cant fathom any justification for such an increase", he says. "A double-digit increase in one year is a lot, particularly in tough economic times".
