Navigating the roads of Texas requires reliable transportation, and just as essential is having the right car insurance. It’s the financial safety net that protects you, your vehicle, and others in the event of an accident. For Lone Star State drivers currently insured with Safeway Insurance, there’s an important update regarding future policy costs.
What’s Happening?
Safeway Insurance Company is set to implement an average auto insurance rate increase of 9.8% for its Texas policies. This change is scheduled to take effect for renewal policies starting on June 1, 2025, impacting roughly 14,732 policyholders.
While this percentage represents an average across the affected policies, the overall financial impact is notable. The adjustment is projected to raise the total annual premium collected from this group of renewing Texas policyholders from approximately $39.7 million to almost $44 million. For the average individual, this translates to a $264 increase for each policy.
Shop now and save!
Why Do Car Insurance Rates Change?
News of a rate increase often leads to the question: “Why is this happening?” It’s rarely about one single factor. Insurance companies, including Safeway, operate in a dynamic environment influenced by numerous economic and risk-related elements. Understanding these can provide context for why adjustments can occur.
- Rising claim costs: The most significant driver is often the increasing cost of paying claims. This involves several components, including vehicle repair costs, medical expenses, and total loss frequency.
- Severe weather events: Texas is no stranger to severe weather – hurricanes along the coast, hailstorms in the plains, flooding, and even winter storms. These events can cause widespread vehicle damage (think hail dents or flood-ruined engines), leading to surges in comprehensive claims and impacting insurers’ financial outlook for the region.
- Economic inflation: General inflation affects nearly every aspect of the economy, including the costs insurers face for repairs, replacements, and operational expenses.
- Insurance fraud: Unfortunately, fraudulent claims (staged accidents, exaggerated injuries, etc.) add costs to the system, which ultimately get passed on to honest policyholders through premiums.
- Litigation trends: Texas has seen an increase in auto-related lawsuits and large settlements, sometimes referred to as “nuclear verdicts.” This legal environment can also influence insurance pricing.
How Texas Drivers Can Find Savings on Car Insurance
While rate increases can feel like something happening to you, there are proactive steps you can take to manage your car insurance costs and actively seek out more affordable options.
- Get your renewal quote early: Knowledge is power. If your Safeway policy renews on or after June 1, 2025, contact Safeway well before the renewal date to understand exactly how the rate change will impact your specific policy. Don’t wait for the bill to arrive– find out in advance.
- Shop around and compare: This is perhaps the single most effective strategy. Insurance rates can vary significantly between companies, even for the exact same driver and coverage. Try out our free shopping tool to start getting quotes.
- Review and adjust your coverage: Take a close look at your current policy declarations page. Do your coverage limits still make sense for your situation? Evaluate your deductible, collision/comprehensive, and liability limits. Just make sure that if you reduce your coverage, you have enough savings to cover the out-of-pocket costs.
- Ask about every available discount: Insurers offer a wide array of discounts, but they aren’t always automatically applied. Ask your current insurer (and any potential new insurers) for a full list of discounts you might qualify for:
- Bundling: Combining auto with home, renters, or life insurance often yields significant savings (multi-policy discount).
- Multi-Car: Insuring more than one vehicle with the same company.
- Good Driver: Maintaining a clean driving record (no accidents or violations).
- Safety Features: Having anti-lock brakes, airbags, anti-theft devices, etc.
- Low Mileage: Driving less than a certain number of miles per year.
- Payment Discounts: Paying your premium in full upfront, setting up automatic EFT payments, or choosing paperless billing.
- Good Student: For young drivers maintaining good grades.
- Defensive Driving Course: Completing an approved course can sometimes earn a discount.
- Affiliation Discounts: Some insurers offer discounts for members of certain organizations, alumni groups, or occupations.
- Maintain good credit: In Texas, insurers can use a credit-based insurance score as one factor in determining premiums. Generally, better credit history can lead to lower rates. Paying bills on time and managing debt responsibly can positively impact your insurance costs over time.
- Drive safely: Your driving record is a primary factor in setting your rate. Avoiding accidents and traffic tickets is crucial for keeping premiums as low as possible.
Looking Ahead
The landscape for car insurance in Texas is constantly evolving, influenced by economic pressures and regional risks. While Safeway Insurance is adjusting its rates for some Texas policyholders starting in mid-2025, this doesn’t mean you’re without options. Shopping around ahead of your renewal date can help you secure affordable coverage and avoid rate increases.
Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.
