personal auto insurance in college station texas

 

Hurricane Harvey was months ago, yet homeowners are not the only ones who have been affected by property loss. Texas auto insurance services have been receiving claims from their customers since the day after the state was hit by catastrophic flooding from Hurricane Harvey.

If you have the right personal auto insurance and suffered a loss, you undoubtedly claimed that loss through your auto insurance agency. Yet industry experts warn that increased auto insurance rates across the board will likely happen as a result.

Astronomical Hurricane Harvey Auto Loss

Within just a few days of the flooding caused by Hurricane Harvey, auto insurance services with customers in southeast Texas were inundated with over 100,000 claims for flood-damaged vehicles. By the end of this ordeal, the industry expects to receive half a million claims on covered vehicles destroyed by Harvey.

In actuality, the number of destroyed vehicles is much higher based because Texas does not require drivers to carry comprehensive coverage on their personal auto insurance policy. Still, the cost of covered vehicles alone is expected to dramatically affect the auto insurance industry for some time to come.

Insurance Companies Hard Hit By Flood Claims

The cost of totaling so many vehicles is significant. Auto insurance services are expected to pay out billions of dollars to covered vehicle owners. In a market that has already seen record losses every year due to increased claim costs resulting from texting accidents, increased accident severity and rising medical treatment costs, increased repair costs from more technologically advanced vehicles that cost more to repair and others, the damage from Harvey will only worsen this trend.

Although larger and more profitable insurance carriers may be better able to absorb such losses, smaller auto insurance agency carriers may suffer considerably. Personal auto insurance carriers across the board have recently reported their weakest years in the past 15 years. The losses from Harvey are making what is a bad situation for many auto carriers even worse.

How Will Harvey Affect the Auto Insurance Industry?

Due to the record losses expected from Hurricane Harvey, industry analysts acknowledge that coverage rates in Texas will increase for most drivers. Auto insurance carrier rates, which already went up nationally last year as underwriters attempted to recover from rising claim costs, will likely go up again in Texas.

How much premiums will go up is yet to be known. Larger carriers that can absorb some of their losses through may see lower rate hikes; however, the expectation is that increases will affect most companies.

What does the future hold for Texas drivers? Chances are that personal auto insurance will cost everyone more in the coming year as underwriters in the state work to regain footing to continue to serve Texas customers. Unfortunately, disasters like Hurricane Harvey affect almost all auto insurance services in some way. To learn more about how your specific carrier has been affected and what types of rate increases you may face, contact your auto insurance agency!

Need Personal Auto Insurance In College Station TX?

Contact Jones & Associates About Auto Insurance Services!

Call (979) 599-7532!