Automobile liability premiums have unexpectedly increased by this huge amount this year, according to the Texas Department of Insurance. And a typical comprehensive policy per vehicle in Texas now costs $1,262.00 a year — one of the highest rates in the U.S.
According to the multi billion dollar insurance industry, it is because liability rates increased from $25,000 to $30,000 per person on January 1st and medical costs for those injured in collisions have dramatically increased this year.
Consumer groups state that it is simple corporate greed. “I can’t think of any reason to justify that kind of an increase in one year,” Alex Winslow, director of Texas Watch, said. “I wouldn’t be surprised if some insurers are trying to squeeze whatever they can out of their policyholders.”
Consumer representatives also said that insurance companies are also hitting up their customers for bad investments in the tanked stock market.
What do you think?
It is possible that there have been more $30,000 claims already paid out from wrecks , as I have settled a lot of claims for this amount this year as opposed to the old limit of $25,000. But that would only be an extra $5,000 for those maximum policy limit claims — obviously not enough to jump rates by so many millions of dollars.
And while medical expenses may have increased somewhat since January, again it is hard to believe that that justifies such a huge rate hike.