Auto insurance prices driven up in 2011

AUSTIN (KXAN) - The start of the new year means auto insurance rates for more than half of Texas drivers are going up.

A law passed back in 2007, mandates insurance companies raise their premiums.

That means starting Jan. 1, those who have minimum liability insurance will be paying 2- to 3 percent more on their premium. More than 7.5 million Texas drivers will be affected.

"Basically, to keep up with the increasing cost of repairing cars and increasing medical costs," said Jerry Hagins, with the Texas Department of Insurance.

State lawmakers' decision to raise premiums came as a first-time adjustment since 1983. The current minimum liability insurance costs about $450 per year.

The new requirements mean drivers will have to carry insurance that covers $30,000 per person injured, $60,000 per accident, and $25,000 for damage to the vehicle.

While those rates are increasing, drivers who are considered high risk -- meaning they've had a lot of tickets or have been in accidents -- their rates are going down by 7.6 percent.

"It's a business cycle. Some years they edge down; some years they edge back up," said Hagins.

While it may not seem fair, the folks at the Texas Department of Insurance said those rates have gone up the last few years. So what do you do if you're not happy with what your insurance company charges?

"If anyone is worried about their premium going up, get online to see if you can do better," said Hagins.

A new state website called Help Insure could help.

"You type in your zip code and answer a couple of questions so it's anonymous, and it will bring up all your top insurance companies in your area with some sample prices," said Hagins.

And with nearly half of Texas drivers about to see their premiums go up, shopping around may help you find a lower rate.