Some of the more impoverished counties in Texas are likely paying a lot more for their auto insurance, according to a new report from consumer advocate Value Penguin.
"We had a couple of cities that featured in our most expensive portion of the study that were located in some of the poorer counties in Texas – Hidalgo, McAllen and Mission," Ting Pen of Value Penguin told Kera News.
Value Penguin tested over 300 cities in Texas for auto insurance price quotes, using a variety of fictional characters as models for basis of the quotes; some characters were single, some were married, young and old, and so on.
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Of the various factors tested, Value Penguin found that it was a consumer’s zip code that made the most difference in determining auto insurance rates.
For instance, while a motorist in Mission would pay about $170 per month on auto insurance, the average driver in Memphis would pay only about half of that amount monthly.
Texas Department of Insurance spokesperson Jerry Hagins made clear that the agency is well aware of the discrepancies in pricing.
"We do see variations in premiums in different locations," Hagins remarked. "The geographic location is just one of the factors an insurance company will use to determine the premium that they charge us. They also use our age, the kind of car we drive, what we use it for (and) most importantly our driving record."
Hagins pointed out that although paying more in a certain part of the state is not necessarily unfair, some insurance carriers can get carried away with their rates.
"The rate has to be reasonable, it cannot be discriminatory and it cannot be excessive," he added.
For those who feel that they are being charged excessively, Hagins recommends that they contact the Department of Insurance and file a complaint. This would allow the agency to look into the matter and investigate the insurer’s practices.
