Austin, Texas has a high cost of living. Auto insurance in Austin TX is high. Texas is also known as the Lone Star State and here the minimum requirements by the state are low as compared to other states. But it makes sense to take coverage that is much higher than the minimum when you take auto insurance in Austin TX. This is because Austin has a high number of uninsured drivers.
In the event of an accident in Austin, Texas, you will find that 1 every 7 drivers is not insured. And your pockets will get saved only if you have taken the uninsured and underinsured motorist coverage (UIM/UM). Otherwise, the money will go out from your pockets to cover the accident cost even if it is not your fault. Because there are many uninsured drivers, car insurance in Austin Texas is high. Apart from these two, the comprehensive coverage is also an important one as it covers you in times of natural disasters like hurricanes and hail storms. Austin, Texas is prone to such catastrophes and the minimum requirement of this place doesn’t include it.
The Minimum Liability Coverage for Auto Insurance in Austin Texas
When in Austin, Texas, you are required to insure for any bodily injury and damage to property that could be caused by a car accident. Therefore it is up to you to apply for additional coverage for you, your passengers and your car. Below is the minimum liability coverage below:
- $30,000 bodily injury coverage per person
- $60,000 bodily injury coverage per accident
- $25,000 property damage coverage per accident
Though these coverages may seem on the higher side, these may fall short sometimes to cover all the accident expenses. For instance, if you own a luxury car and you accidentally crash it, the replacement cost of this car of yours would definitely cross the property damage coverage of $25,000. In both these situations, the difference or the balance amount will have to be paid by you from your wallet. We can help you in choosing the best car insurance companies to meet your requirements.
Factors Determining Premium Rates of Car Insurance in Austin Texas
Apart from the location you live in, many other factors also play a vital role in Austin, Texas in determining your car insurance rates. Your age and your personal driving history are important just like your car’s safety features and model.
By now you must have realized that in Austin, Texas you will need more add-on coverages as compared to other states. Your car insurance rates will increase substantially hence. Here in Austin, Texas your insurance company has to provide you with a PIP or Personal Injury Protection coverage worth $25,000 on applying for auto insurance. It is mandatory to have this PIP coverage in a ‘no-fault’ state.
But in Austin, Texas this coverage is optional provided you confirm in writing that you do not want to have the Personal Injury Protection coverage. But, if you do go in for the PIP coverage, then the entire coverage amount will be paid to clear the medical bills if and when an accident occurs irrespective of who was at fault.
Health insurances do take care of medical bills. But having PIP coverage is an advantage. This coverage covers 80% of income when lost by you due to an accident. This may sound too good, but don’t forget that in the long run this $2,500 may not help much. Few insurance companies help you raise this limit, but doing so will only make your premium higher.
During the last seven years, Austin, Texas has witnessed a huge increase in auto insurance premium rates. This is because the cost of repair of technologically advanced new cars has gone up. Plus, the weather conditions of this place are extreme which increases the premiums further. The famous Hurricane Harvey is a recent example where 500,000 and above vehicles in Texas were flooded. Insurance companies had to pay for a huge number of vehicles and suffer huge losses as a result. And then because of this the next year, premiums were increased by 8%. Texas ranks 1st when it comes to losses incurred due to hailstorms.
In Austin, Texas when one gets caught driving a car without being insured, they could be asked to pay $1,000. To avoid such situations, have car insurance in Austin Texas. Additional coverage could be optional. Comprehensive coverage lets you replace your stolen car by paying for it. And this cover also covers damages to your vehicle because of vandalism, flooding, fire, animal strikes, and hail. And when you meet with an accident and damage your car, the collision coverage comes in handy as it pays for such damages.
Lastly, always check the NAIC (National Association of Insurance Commissioners) ratings for any insurance company before you take insurance with a company. Choosing the right insurance company means being in safe hands and having any claims paid properly and hassle-free. The ratio of happy customers writing an online review is very less and next to rare in comparison to unhappy customers.