Higher Insurance Seen for Texas City


Motorists residing in Brownsville, Texas may have to shell out more for their auto insurance after the release of a recent survey. According to this year’s Allstate America’s Best Drivers Report, the city slipped two places behind other cities included in the survey after leading other cities in the state for the past three years.

Higher Insurance Seen for Texas CityExperts say that the findings can have significant effects on insurance premiums for policyholders who live in Brownsville. The results of the study can also affect insurance rates for other motorists in the state of Texas. Analysts say that because insurers usually base rates on the car owners place of residence, any safety studies that point out to less safe areas can automatically mean higher premiums.

Researchers say that while Brownsville may have dropped from its three-year run, other cities, particularly those in the border regions of Texas, rank high in the survey. The study makes use of the figures provided by insurers, such as the volume of insurance claims per capita. Using this as basis, researchers were able to place Brownsville above the rest of other cities.

Even so, some analysts say that there can be several explanations for the city’s high ranking. For example, some experts believe that motorists from the city are simply safer and more cautious drivers. Other believe that the large number of uninsured drivers in Brownsville may be forcing motorists to avoid filing for insurance claims for fear of being caught.

A representative from the Texas Department of Insurance says that the agency does not have the exact figures on the number of uninsured drivers in certain areas of the state. Jerry Hagins, a representative from the state’s Department of Insurance, says that they are in the process of consolidating all information related to uninsured motorists. Texas is currently developing a database of all known uninsured drivers for law enforcement agencies to use.

Some 4 million cars or about a fifth of all vehicles in the state have no form of insurance whatsoever. Experts say that this number can increase significantly if the economy does not improve soon. Rising unemployment rates are forcing many car owners to drop their policies altogether.

Representatives from the auto insurance industry say that studies and researches do play a crucial part in determining premiums. They point out that while frequency of claims is an important factor, there are other aspects insurers consider in coming up with rates. Analysts say that when the state’s insurance database is completed, motorists can expect premiums to go down.