Why have insurance premiums increased for Texans?

Insurance premiums in Texas have increased for several reasons, including:

1. Increased natural disasters: Texas is prone to hurricanes, floods, and other natural disasters, leading to higher insurance claims and payouts. Of late, there have been an abundance of all types of disasters. Think of the fires in the Panhandle, the flooding in south Texas, and hail storms claiming so many roofs. It's no wonder premiums have risen. We try to get creative at Bunkley & Jones Insurance Agency to get you the best price possible.

2. Rising construction costs: The cost of rebuilding or repairing homes and buildings has increased, which impacts insurance premiums. Post-COVID prices have remained high. Some materials have seen a resumption to normal rates, but others have not. These costs get passed along to the consumer.

3. Litigation costs: Texas has seen a rise in insurance-related lawsuits, leading to higher legal expenses for insurance companies.

4. Frequency and severity of claims: An increase in the frequency and severity of insurance claims can result in higher premiums to cover potential losses. This points back to natural disasters again and the widespread of total loss claims.

5. Market conditions: Insurance premiums can also be influenced by overall market conditions, such as supply and demand dynamics in the insurance industry and interest rates. At this writing in 2024, interest rates are still at the highest in decades, which means the cost of the companies to do business is still high. We remain hopeful interest rates will decrease around the fourth quarter and ameliorate some the high costs. For now, lock in to a short term policy (6 months or 12 months) and then call us back to price shop again near the end of the term and see if rates have come down.

Overall, we are sensitive to our clients needs and work hard to get your the best price we can. Call Bunkley & Jones today for the very best rate. 940-889-3115