Texas Auto Insurance : What You Must know ?

Obtaining affordable Texas auto insurance can be a frustrating ordeal but with the right information you can find some excellent comprehensive plans.  Here is some advice for shopping for car insurance in the Lone Star State:

The Basics:

  • Texas is an “at-fault-state”, so when there is an accident one driver is determined to be responsible and therefore liable for all of the personal and property damages.  Texan state law says that all drivers must have car insurance to help cover these costs should they arise.
  • Texas auto insurance minimum requirements are 30/60/25 coverage.  This provides $30,000 coverage for a single individual for bodily injuries per accident, $60,000 coverage for bodily injuries to two or more people per accident and $25,000 coverage for property/vehicle damage per accident.  This minimum requirement does not cover the insured party’s vehicle.
  • In 2010 the average insurance premium for residents in Texas was $1,518, 16% lower than in 2009.  The national average was $1,538.
  • The consequences for driving without valid car insurance in Texas are quite severe.  A first offense will result in a fine from $175 to $350 plus court costs and subsequent convictions can result in much larger fines and even jail time.

How Much Texas Auto Insurance Do I Need?

The amount of coverage that you should purchase depends on your individual circumstances.  The minimum level insurance will be your cheapest option but will not cover many unfortunately all too common costs involved in an accident.  Here are a few of the common add-ons you will want to consider:

Comprehensive and Collision: will pay for damages caused to the insured party’s vehicle minus any deductibles which may applicable, regardless of fault.

Uninsured Coverage: covers medical bills, property damage and vehicle repairs which are caused by an uninsured driver or in a “hit-and run”.  In 2007 it was estimated that 15% of drivers in Texas were uninsured.

Personal Injury Protection (PIP): will pay for all reasonable medical and funeral expenses for the insured and their passengers as well as 80% of lost income caused from a driving accident.

How to Find the Best Texas Auto Insurance online

The best way to obtain the most affordable coverage is to compare quotes from different companies in order to find the best premiums and add-on options available to you.  Rates can vary as much as 300% so it is absolutely crucial to shop around and not just take the first quote that you find.  The internet makes this easier than ever as you will find that most companies now have their rates available online.

The auto insurance rates which you will receive are based on a wide variety of factors, from your age and sex to your driving record and the type of vehicle you own, so it is impossible to state the exact amount that any individual should expect to pay.  However, here are some excellent tips to help you to identify the best Texas auto insurance rates online:

  • Many insurers offer significant discounts to specific groups such as people with perfect driving records or college students.  Always check all of the available discounts to see if there are some which you can take advantage of.
  • Always provide as many relevant details as possible to ensure that you receive an accurate quote.
  • Higher deductibles result in lower insurance premiums however in doing so you risk watering down your coverage.  Don’t compromise your long term financial security in an unforeseeable traffic accident in order to save money in the short term.
  • Reduce the number of miles that you drive to qualify for low mileage discounts.
  • Auto insurance rates fluctuate greatly on a month to month basis.  Have a look at a monthly trend graph to help you determine when is likely the best time to buy.
  • Having an anti-theft device installed in your car can lead to discounts which make them well worth the money.
  • Families should compare insurance companies quotes based on sex and vehicle type as it can make a substantial difference to their premium rates.  For example if you have a truck it often makes the most financial sense to have a female insured as the main driver.  If you have a teenager or new driver then you will save money from having them insured as the driver of a safer model such as a family sedan rather than a sports car!

If you are looking for the best Texas auto insurance then get online and start comparing what there is to offer.  The more quotes that you collect the better chance you will have of finding the perfect balance of coverage and affordability.

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