Texas Auto Insurance Basics

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As compared to the rest of the US, residents of Texas are lucky to have one of the least expensive auto insurance rates in the US. The reason for this lies in the vast rural areas that signify a large part of Texas, the relatively low rate of auto theft, and traffic congestion that is far lower than the national average.

Texas auto insurance prices are dependent on the types of coverage people prefer to purchase, and some additional factors. Texas is a state with a healthy economy and people there prefer to buy new cars. Many people prefer to purchase physical damage coverage for their new cars, since everyone likes their car to remain in top condition for as long as possible.

The net effect of this does increase the expenditures of the Texas auto insurance companies. Therefore you would think that the areas that have higher per-capita income should have higher auto insurance prices – however, this is not so. Overall, all areas of Texas have fairly cheap insurance prices for auto insurance as compared with other US states.

One reason for this could be that Texas is a tort liability state. This means that drivers here are free to sue one another for medical expenses out of the pocket and also for emotional distress that is considered as secondary damages. In such conditions people prefer to opt for lower coverage, and this drives the rates down.

Auto Insurance Provides Protection

The Texas auto insurance is designed to protect the automobile, the owner’s family and the owner. Texans purchase auto insurance to make sure they remain financially protected in case of any unfortunate accident. Texas presently has 22.5 million residents and there are likely several million drivers at any given time on the roads, streets, freeways and highways of Texas.

Texas law defines that all Texan drivers must have Texas auto insurance. If the car has been financed, the finance company that lent the money for purchasing the car, asks for collision and comprehensive coverage in addition to the bare minimum coverage as stipulated by the law. This is highly recommended as, in the case of a collision, the car may have to be repaired, and the expenses could be financially crippling, unless provided for by the insurance company.

Being a driver in Texas, the individual is expected, by law, to be able to pay for any damage due to the accident caused by the individual. Most residents of Texas show this capability of paying for the damages, injuries and other losses in an accident, by purchasing Texas auto insurance.

The basic Texas auto insurance coverage is called the 20/40/15 coverage. This means that a minimum coverage of $20,000 has to be paid per injured person, with a maximum cap of $40,000 for everyone hurt in the accident. For property damaged due to the accident, the minimum payment is $15,000. However, this is the bare minimum, and may not suffice to cover all types of damages, including damages sustained to the car. Therefore, it is recommended to buy insurance in excess of the stipulated minimum.

There are several insurers in Texas offering auto insurance. Motorists are advised to shop around for the best offer among them. Texas auto insurance quotations from various insurers need to be compared along with the coverage provided, to arrive at the best Texas auto insurance package.

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