The high-tech industry has made Austin, Texas, home. This city with less than 1 million residents also is the home of The University of Texas at Austin, which means that a multitude of the drivers in this town is under the age of 25. This serves to help raise the insurance rates as drivers under 25 tend to have a high insurance rate based upon age and experience.
The high-tech industry leads the area into a higher than average income and home value, which in turn raises the insurance rates. Property and vehicles that are normally associated with higher than average incomes are usually more expensive to both insure and for other drivers to cover with their liability insurance.
The Texas state insurance requirement for property liability is only $25,000 and wealthier individuals may not drive vehicles under $25,000. This means that average income people need to carry more insurance in order to protect themselves from being liable for damages over $25,000.
The largest employers in the Austin area are government employees, particularly the school district.
Most car insurance companies will offer discounts to government workers, such as teachers. If you are a teacher, when you compare auto insurance quotes, be sure to ask for a discount as a member of a group. Sometimes when comparing quotes for auto insurance, you forget that those discounts are available to you.
Dubbed Silicon Hills because of the influx of high-tech jobs has created a steady flow of traffic between San Jose, California and Austin on what is referred to as the Nerd Bird flight. A direct flight between the two cities has brought many new high-tech workers and businesses to the Austin area.
The flow of traffic raises insurance rates as it adds congestion to the highways in the area. The more traffic, the higher the risk of accidents and related claims the insurance industry must deal with.
According to statistics, 73 percent of the people commute to work alone and only 10 percent carpool. The remaining percentage either worked at home or walked, and only 5 percent took the bus. This puts many vehicles on the road and raises the car insurance rates for this area.
If you are riding the bus to work, or carpooling, you can save money on your car insurance by letting your agent or company know that you are no longer driving on the highways. If you are thinking about taking public transportation, ask your auto insurance company for comparison quotes to see how much you would save if you stopped driving to work.
Austin has a rather mild climate. They may experience an ice storm every few years, which results in a variety of accidents, but it is rare enough it should not affect car insurance rates due to climate. Austin is deemed arid subtropical.