How Climate Change Is Revving Up Your Auto Insurance Rates in Central Texas

Let’s face it—auto insurance premiums have been feeling a little extra lately. If you’ve noticed your car insurance bill creeping up, you’re not alone. And no, it’s not just because your cousin got a speeding ticket in your car (although… don’t lend your car out too freely).

One of the lesser-known but major culprits behind rising auto insurance costs? Climate change.

Yes, seriously. From sizzling summers to freak hailstorms, extreme weather is becoming the new normal here in Central Texas—and it’s having a real impact on how much we all pay to protect our vehicles.

Let’s break it down.

🚗 Weather Events Are Wrecking More Than Weekend Plans

Climate change is causing more frequent and severe weather events—think flash floods, hailstorms, wildfires, and even the occasional ice storm (we all remember Snowpocalypse 2021). These events are damaging vehicles at record rates, and insurance companies are paying out more in claims than ever before.

More claims = higher losses = increased premiums for everyone.

In fact, insurers have seen catastrophic auto losses jump 40% in recent years—and Texas is one of the hardest-hit states.

💸 Repair Costs Are Skyrocketing, Too

With extreme weather comes a cascade of added costs. Supply chain issues (hello, backordered bumpers) and inflation have pushed up repair expenses significantly. Replacing a damaged fender after a hailstorm isn’t as simple—or cheap—as it used to be.

Throw in the rising number of total losses from floods and fires, and it’s clear why carriers are adjusting their rates to keep up.

🌪️ Central Texas: Ground Zero for Risk

Living in the Austin area means you’ve probably experienced a wide variety of weather—and not all of it friendly. According to recent reports, the Central Texas region is seeing more extreme heat days, stronger storms, and unpredictable seasonal patterns. All of these factors make the region a higher risk zone for auto insurers.

That risk shows up in your premium.

🚙 So… What Can You Do About It?

While we can’t control the weather (if only!), there are ways you can protect yourself and keep your premiums manageable:

• Bundle your policies – Combine auto with home or renters insurance to score a discount.
• Review your coverage – You might be over- or underinsured. We’ll help you strike the right balance.
• Raise your deductible – If your finances allow, a higher deductible can reduce your monthly premium.
• Drive safely and stay claim-free – Fewer claims = better pricing over time.

And the best tip? Work with a local independent agent (that’s us!). At Dowd Insurance Agency, we shop multiple top-rated carriers to find the best auto insurance coverage for your needs—at a price that makes sense.

Let’s Weather the Storm Together

Climate change may be driving premiums up, but you don’t have to ride solo. If you’re in the Central Texas or Austin area, our team is here to help you understand your options and find ways to save. Whether you’re commuting to work, road-tripping through the Hill Country, or just navigating the H-E-B parking lot—your auto insurance should have your back.

Give us a call or get a quote today. 🌤️