The cost of living in Texas is high and so are the car insurance rates in Texas. Though the Lone Star State compared to other states has low minimum requirements, accident covers are expensive. When an accident occurs in Texas, one out of seven drivers is not insured. Only if you have bought underinsured and uninsured motorist (UM/UIM) coverage, the money will not go from your pocket. This automatically increases the car insurance rates in Texas. When we talk to Texas’s minimum requirements, it doesn’t consider comprehensive coverage. This coverage is a must for you as Texas ranks first when it comes to monetary losses from hail storms and hurricanes. It is prone to catastrophes.
The Minimum Liability Coverage for Car Insurance in Texas
In Texas, you have to insure against any injury of the body and any property damage that you may cause in a car accident. Hence applying for add-on coverage for yourself, your car and your passengers, is a choice left to you. You can check 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
These coverages are on a higher side. But, in some instances, these will not be sufficient to cover you fully. Like for instance, if you crash into a luxury car accidentally, its replacement cost would definitely exceed the $25,000 property damage coverage. And if the driver in that luxury car gets injured, their medical expenses may easily cross the $30,000 bodily injury coverage. So here in both situations, you will have to make up for the difference by paying from your pocket.
However, since the minimum requirements are standard, you can choose your auto insurance in Texas from a wide range of car insurance providers. We can help you to choose the best car insurance companies to suit your needs.
Factors that Determine Car Insurance Rates in Texas
Along with the state, there are other factors that impact your auto insurance rates in Texas. Your own history of driving and your age is important. So is your car’s model and its safety features.
As we saw, you will need more coverage options in Texas that you would it other states. This can increase your auto insurance rates in Texas substantially. Insurance providers in Texas have to give you $2,500 in Personal Injury Protection coverage (PIP) when you apply for a car or auto insurance. The PIP coverage is mandatory in “no-fault” states. However, in Texas it is optional. But you will have to mention this in writing that you do not wish to have the PIP coverage. And, if you opt for it, then the entire PIP coverage amount will be provided in the event of an accident to cover the medical bills. This will be paid irrespective of whose fault it was.
Though your health insurance may be able to take care of your medical bills alone, there is an added advantage of having a PIP cover. It nearly covers 80% of your income that you could lose if you don’t work because of the accident. However good this may sound, please note that $2,500 for lost income will not help you for a longer period of time. There are few companies that will allow you to have the limit raised, but this add-on option gets costlier.
In the last 7 years, Texas has seen a tremendous increase in the premiums for auto insurance. The premium costs have gone up because the repair costs for new cars that have added technology has gone high. Also, extreme weather conditions add to it. Hurricane Harvey is one such recent example. More than 500,000 vehicles got flooded in Texas. This was a huge loss for the insurers as they had to pay for so many vehicles. The following year the premiums shot up by 8%. Texas is anyway at the number one position in the entire nation for losses caused by hailstorms.
In Texas, if you get caught for driving without insurance, you may land up paying up to $1,000 along with surcharges that go towards the yearly driver’s license fee. Hence to avoid such a situation make sure to at least have auto insurance.
Types of Coverage for Auto Insurance Rates in Texas
You can choose additional coverage options. Comprehensive coverage helps you to replace stolen cars by paying for it. It also covers damages caused by flooding, vandalism, hail, animal strokes, and fire. If you cause an accident and your car gets damaged, collision coverage pays for these damages. In case your car is below:
- Has not completed 10 years, you have to think of buying comprehensive and collision coverages.
- Has completed 10 years, buy the comprehensive and collision coverage only if the worth of your car is $3,000 and above, if your car is wrecked and you are unable to afford its replacement, and if you just want added protection.
Finally, make sure that you check the ratings of the insurance company you finalize on, on NAIC (national association of insurance commissioners). This ensures that you get your claims paid on time. You can ignore online reviews as they mostly are from disgruntled customers.