With the environmental catastrophe that has befallen the Gulf Coast area that Texas happens to be a part of the economical effects on gas prices and auto insurance need to be explained. Basically what is about to happen is an increase or a spike if you will in gas prices and dependending upon the response from oil wells and other oil refineries possibly a spike in auto insurance rates as well. The reasons for this is such as a deck of cards that are stacked into a house shape, supporting each other until a bottom card is pulled out and all the cards come crashing down.
The reason why we can say with utmost certainty that there will be some cost increase for both fuel and auto insurance rates is that the two are inextricably entwined. As big as the Gulf of Mexico oil platform industry is the wonder is not if there will be an economic affect on the gas and insurance prices but just how much.
We have enjoyed relatively stable gas prices through the last 18 months and were forewarned of that increase by OPEC about 18 months ago. That locks in a gas increase by the end of this summer without the extra-added bonus of a larger-than-life oil spill that continues to leak and contaminate the Gulf Coast localities.
Another reason why auto insurance rates will go up in Texas is that people will still need to drive to work and to look for jobs if they are unemployed and take kids to school and do all the other things that are required through the use of a vehicle. The State of Texas is quite large and public transportation only covers so much even the larger metropolises of Texas such as Dallas, San Antonio and Houston. In Texas oil is king and when oil is crippled everyone feels the sting, eventually.
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