BRYAN, Texas (KBTX) – As inflation continues to rise, drivers in Texas are feeling the pain with higher insurance rates.
State Farm insurance agent Lance Snider told KBTX that this is a battle unlike any he has seen in his 13 years in the business.
“Eight percent [increase] is the statewide average,” Snider said. “But I’ve seen anywhere near 45 percent in some companies and I’m seeing closer to 20 percent.”
All of this is due to inflation and supply chain issues. Snider said any kind of company involved in the auto market is a reason why rates are rising.
“Vehicles take longer to repair. That cost comes with how long you’ve paid for your rental car, which also makes the rental cars more expensive,” Snider said. “Also just the cost of getting material or labor in general.”
Snider said that when he first saw auto insurance rates rise, he contacted a local auto repair shop and asked what it was like to pick up inventory.
“I spoke to a local body shop here and I think it was about 53 percent of the cost increase. That’s compared to years past to make vehicles work,” Snider said.
Silas Garrett is the owner of George’s Paint & Body in Bryan. Garrett and his wife have been running the shop for nearly 20 years. Over the years he has dealt with many clients and their insurance companies. Lately he has been seeing the impact his store has on carrier rates.
“As the paint material goes up, the parts go up, the labor goes up… we need to collect everything we can get for the repair to make sure your car is repaired safely,” said Garrett. “The costs all add up and are a big problem for some customers in the store.”
Garrett said car costs in general are more than 52 percent of what they were a few years ago before inflation went through the roof.
“Years ago comprehensive deductibles were $100, collision deductibles were $250. Now we saw both of those .. $1,000. That’s all money out of your pocket.”
What worries Garrett the most is that he cannot properly serve his customers due to cost issues.
“A lot of people tell us, ‘I want to save money, so I don’t want to fix that part of my car,'” Garrett said. “But that really puts them in danger. Anything that needs to be repaired should be properly repaired.”
Click here for more information from State Farm on auto insurance rates.
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