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Car insurance is mandatory in Texas. This means if you have just moved to Texas, or have gotten your very first driver’s license, or have purchased a swanky new set of wheels, you need to get car insurance. The state of Texas has firm laws in place regarding auto insurance. The law makes it mandatory for a Texas driver to purchase and maintain auto insurance as your proof of financial responsibility.
Driving is a privilege and you need to show your proof of financial responsibility in order to drive on Texas roads. For out of state car owners, your insurance policy from other states will be not valid in the Lone Star State for long. You will need to get your vehicle insured from a licensed insurer in Texas, only then will you get Texas license plates. You also must have proof that the vehicle is currently insured in your name to get your car registered in Texas.
Minimum Liability Coverage in Texas
The state law has defined certain minimum levels of coverage that every motorist must have. Being a tort state, the state determines one driver as responsible for the crash in an accident. It is the ‘at fault’ person who has to pay for all the damage (bodily and property) done in the accident.
Every driver in the state is required to have the minimum liability coverage, so that their insurance companies can pay for the damages incurred in an accident caused by them. This coverage is of course provided up to a limit, and is known as the 30/60/25 coverage.
These are the basic minimum coverage amounts that have been mandated by Texas law:
- $30,000 in bodily injury coverage per person in one accident
- $60,000 in bodily injury coverage for all injured per incident
- $25,000 in property damage coverage per incident.
Remember that these are just the minimum amounts and can fall painfully short in paying for the damages incurred in a serious accident. This means that if you are responsible for an accident, the remaining payment for the damages will have to come from your pocket. That is why it is often recommended that you choose a higher coverage amount.
Additional Coverage Options
There are other insurance coverage options that are not mandatory by the state law. These policies include uninsured/underinsured motorist coverage and more. If you want to protect yourself, then these policies are a good decision. The reason being, if you buy just the state required policies, then in the event of an accident, where you are held responsible, all your insurance will pay for is the damage done to others. You will have to pay for medical expenses on your own injuries or for the repair of your own vehicle from your pocket. That is why you may choose to have supplemental insurance to further protect yourself and your property.
As soon as you get your vehicle insured, you will have to carry proof of insurance whenever you drive in Texas. You will be given an insurance card by your insurance company where your auto insurance policy details will be laid out for law enforcement officers to see. Driving without proof of insurance can lead to serious penalties, including fines of $175 or more and even driver’s license suspensions.
Remember that you must fulfill at least the minimum Texas auto insurance requirements so that you can lawfully operate a vehicle in the Lone Star State.
SR22Texas.org provides an insurance comparison portal where people can find affordable quotes for policies suited to meet the Texas car insurance requirements. You can save up to 50% in just 3 minutes.
Tips to Save Money on Required Auto Insurance
When you buy auto insurance in Texas, you must keep in mind that there is no fixed price. Rates vary among companies and it is always a smart idea to shop around. Make a note of the following tips on how to save money on auto insurance and find the best deal for you and your family:
- Before approaching companies, you need to know what you want. So you must decide before shopping what coverage you need. There are several types of coverage to choose from
- If financially feasible, you can choose a higher deductible. This refers to the amount you have to pay in case of an accident, before the insurance company will pay their portion. Experts advise to have higher deductibles so that the monthly premiums will be lower. Only opt for this if you can afford to pay the deductible amount from your pocket after an accident. This is also a motivator to drive more safely. You are betting your higher deductible amount that you won’t be at fault in an accident
- Approach a number of licensed insurance sellers in Texas and get price quotes from them. Always get the quotes for the same coverage policy so you can compare apples to apples and not apples to oranges. With the internet there is no longer a need to call or physically visit insurance providers. Simply enter your zip code into the insurance comparison quote portal on this sight and follow the directions. In less than 3 minutes you can compare quotes from up to 8 well known nationally recognized insurance providers
- Be truthful in answering questions while getting a price quote for auto insurance. This is critical because, with wrong information, you can get an incorrect price quote or it could lead to a denial or cancellation of coverage when you need it most
- Never choose an insurer just on the quotes they offer. You must consider factors like the company’s financial rating and stability, complaint index (to judge its customer service), and license status (must be licensed to sell in Texas). The odds are that if they advertise in Texas, they are licensed to sell insurance there too
- Visit the government resources and the Texas Department of Insurance to learn more about a company, its license status, complaint history and financial rating.
Now, the state of Texas requires insurance rates to be reasonable not prejudiced. But rates vary with different companies as they each use their unique formulas to calculate monthly premiums. There are definitely certain factors you should be aware of – as they affect your premium – and you can work on them to get affordable quotes.
These Factors Affect Insurance Rates
The factors that affect the company’s decisions while establishing premiums include:
- Age and marital status- If you are a male and under 25 and unmarried, you are high risk and your premiums will be high. If you are a woman under 21, you will have the highest rates. If you are over 50 years of age, you will get good discounts for being an experienced driver
- Your driving record and claims history. A good driving record makes you a lesser risk, hence lower premiums
- Your address and car type. Where the car is parked overnight (accident or auto theft prone areas mean higher premiums) and what is your vehicle type is also makes a difference. Collision and comprehensive rates are high for luxury, high-performance, and sports cars. High repair costs also increase premiums
- Your credit score. If you have a respectable credit, the companies will be reassured that you will pay regularly and hence you’ll receive lower monthly premiums.
These are some factors that affect the rates of your Auto Insurance. TX has many providers and you must choose one very carefully.
SR22Texas.org provides a leading insurance comparison portal serving the residents of TX. Auto insurance quotes from top insurers are available here and can be completed in less than 3 minutes.
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