Schuelke Law Attorneys: Rising Texas Home, Auto Insurance Rates Could Cost You More Than You Expect

Insurance rates are rising again in Texas. At the end of 2022, Texas insurance regulators authorized 32 separate rate increase requests from the state’s home and auto insurers – increases expected to raise premiums by $425.5 million across the industry. 

The increases are linked to a combination of issues for home and auto insurers. Major weather events in Texas, combined with declining auto insurance purchases and inflation driving up the costs of repairs and replacements, are all combining to put pressure on insurance companies – which must maintain enough assets to help everyone they agree to insure. 

These rate hikes are already hitting Texas families in the form of higher homeowners and auto insurance monthly premiums. Yet these increases can end up costing Texans more than just the monthly bill. 

Hidden Homeowners Insurance Costs

A major factor behind the increase in homeowners’ insurance costs is inflation. Inflation makes the costs of basic repair supplies more expensive. If a hurricane damages your roof, for example, inflation means that plywood, nails, and shingles are pricier than they were previously.

Many homeowners “set it and forget it” when it comes to home insurance. If you purchased your policy before the recent inflation increases, it’s possible your current coverage won’t pay for the repairs you need at newly inflated prices. This means your policy could cost you more out of pocket than you expect to pay. 

To address this cost, review and change your policy to reflect the actual costs of fixing your home in case of damage. 

Hidden Auto Insurance Costs

Inflation has also increased the price of auto repairs. For many Texas drivers, their auto insurance poses the same problem as homeowners insurance: It doesn’t cover the true costs, in today’s dollars, of repairs. 

Add the fact that modern vehicles are full of costly sensors and other digital equipment, and an auto repair bill can be much higher than your insurance may cover. 

Experienced personal injury lawyers like the team at Schuelke Law recommend reviewing your insurance coverage at least once per year. Make sure your policy limits cover the realistic costs of repairs, medical treatment, and other needs.