While prices for virtually everything have risen in recent years, few items have rivaled the spike in insurance prices. Texas rates for home and auto policies have surged, putting a strain on households and businesses alike.
Private passenger auto rates rose by 23.8% in 2022 and 25.5% in 2023. Reasons include more expensive cars and higher costs for repairs. Parts are also hard to obtain (particularly when body work is required), and labor costs have escalated. The result is that insurers are raising rates as they attempt to bounce back from massive losses over the past few years (claims and expenses from home and auto policies were $1.10 for every $1.00 in premiums in 2023).
Homeowners’ average rates rose 10.8% in 2022 and 21.1% in 2023. Again, the cost of home repairs is a major reason for the increase. Construction costs are higher than in the past, as are the prices for materials and labor.
