By james art 
Some good news for Texas drivers: A new study predicts that car insurance premiums will not increase too drastically in 2025.
Charged vehicles sit in a authors shop after the property was burned by the Smokehouse Creek fire in February 2024 in Canadian, Texas. Extreme meteorological events have contributed to an increase in car insurance premiums since 2021, according to a new Insurify report.
Julio Cortez/APThe projection comes after a few years of stunning increase in average annual costs for full coverage car insurance, according to a report from Insurify, a website for shopping for insurance comparison.
The average annual price of the full -coverage policy in Texas is $ 2,712 in 2024, with Insurify found to be 15% since 2023. In 2025, this price is expected to increase to $ 2886 in the country which is a 6% increase.
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Prices in Texas are already exceeding those in other states. The average annual price of full coverage insurance reached $ 2313 in 2024, compared to $ 2,019 in 2023 and $ 1633 in 2022 – 42% jump in just two years. Strengthen the forecasts that the average annual price of full coverage insurance this year will increase only 5%.
“In 2023, the prices of car insurance increased with scale and steepness, in principle, it was not observed in the industry in modern times,” said Ice Gardner, data manager for Insurify data.
Insurance: Texas have seen car insurance premiums rise in the past year
Insurify data, based on an analysis of 97 million interest rates in its database, found that the average annual cost of car insurance actually decreased slightly from 2019 to 2021, during the beginning of the Covid-19 pandemic. Gardner pointed out several factors that increased car insurance premiums starting in 2021.
Mainly among them was inflation, which rose to 40-year-old maximums, after the economy opened again and it turned out to be “especially powerful” when it came to vehicles and vehicles, noted Gardner, which means that the claims for Car insurance becomes more expensive. The volume of claims also increased. For reasons that were not completely clear, the nation saw a jump in road accidents, including fatal accidents, after the blocking of early 2020 was raised.
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Third, said Gardner, extreme meteorological events have led to an increase in damage to cars and cars.
“Climate change becomes a bigger part of car insurance and ultimately your car insurance premiums as an average driver,” Gardner said. “A big picture, this is something that the Texas may need to pay more attention to how much natural disasters that are exacerbated by climate change is even on their insurance policy.”
Although climate change has been historically affected by home insurance premiums, the report is established in the report, car insurers “increasingly consider climate damage in risk modeling, as the increase in temperatures of fuels and frequent meteorological events “.
Throughout the country, Insurify said, insurers saw record losses of $ 33.1 billion in 2022, leading to a 24% leap of premiums in 2023.
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In Texas, drivers who own their vehicles are only required to carry liability insurance, according to the Texas Department of Insurance.
Gardner said Insurify, which allows buyers to compare offers from different insurers, saw that consumers respond directly to increases to premiums: drivers have shown more interest in policies that offer levels of faster in exchange for Lower prices.
As a result of the increase in interest rates so far, he said that insurers have returned to profitability and are not expected to increase so much in 2025. Premiums can be affected by changes in policy, such as the tariffs that economists have warned, You can again be able to increase auto parts costs.