It is true when they say that everything is bigger in Texas, especially when it comes to car insurance premiums. Residents of this state have some of the highest insurance premiums in the nation.
Knowing what insurance providers consider when adjusting your rates can help you to find cheap auto insurance Texas.
The Average Premiums for Texas Car Insurance
There are five specific insurance providers that are the most popular in Texas. These providers include Texas Farm Bureau, State Farm, Encompass, Allstate, and Mercury. The least expensive of the five is Texas Farm Bureau with monthly premiums of approximately $113.
The most expensive is Mercury, as their average premiums are $145 per month. State Farm’s monthly premiums are approximately $130, Encompass is $132, and Allstate offers an average of $138 per month. Overall, the annual average of insurance premiums paid in Texas is $1,044, which is 11% higher than the national average.
The main concern for insurance providers in Texas is the safety and reliability of their drivers. The three main factors that affect insurance premiums are the population of cities, the commute time residents need to make, and driving trends.
In order to get the highest benefits out of your insurance for the lowest cost, you’ll need to refine certain criteria. By monitoring your credit score, maintaining a clean driving record, and reconsidering the insurance you want, you can greatly decrease your annual premiums.
Individuals who have poor credit scores find themselves paying the most for car insurance. As with any company, the liability of customers can negatively influence their bottom line. The higher your credit score is, the more responsible you are with money, and therefore, the less risk you are for the provider.
The less you drive, the less likely you will be to get into an accident. As such, it’s important to consider the amount of mileage you are putting on your vehicle. High mileage cars are prone to substantially higher rates.
You will find that most drivers will consider moving closer to work so that they can reduce their insurance premiums. The best way to reduce your premiums is to prove to insurance providers that you are not a risk.
Creating the Right Package
Insurance coverage is quite customizable, especially as each driver has certain types of coverage they want and need. It’s important to consider bundling your homeowner’s insurance and driving insurance for discounts. Also, consider increasing your deductible to lower your costs.
Important Texas Auto Insurance Requirements and Laws
Every driver in Texas is required, by law, to have liability coverage. This type of insurance ensures that you are able to pay for lost wages and injuries caused to other drivers if you are found at fault in an accident. It also gives you the finances to cover vehicle damages because of an accident.
The minimum legal requirements are 30/60/25. This includes:
- $30,000 minimum for bodily injury per person in an accident
- $60,000 minimum bodily injury per accident for more than one person
- $25,000 minimum property damage per accident
Even though these are the legal requirements, they are the minimums. If you are found at fault, it is likely that the amount you will need to pay will be much more than what you are covered for. This is why it is highly recommended that drivers consider increasing their liability coverage to protect them in all situations.
It is also important to know that liability coverage doesn’t cover any damages that you or your vehicle experience. You will want to explore two other options for this—MedPay and PIP.
MedPay and PIP are two options available to Texas residents as add-ons to their existing insurance policy. Both of these additions will assist with paying for injuries that you experience from an accident. It also gives you coverage if you are the passenger in a vehicle and in other situations when you aren’t driving.
Other Important Texas Driving Laws
Your driving record has a large effect on the cost of your insurance. It’s your responsibility to maintain a clean driving record and keep yourself in good standing. This makes it easier to find cheap auto insurance in Texas as well as the best possible package.
Knowing the most commonly broken driving laws in Texas can help you to prepare for your future as a licensed driver. Here are some of them:
There aren’t statewide restrictions to distracted driving. However, there are municipal laws and regulations.
In Texas, most cities either have a complete ban on using transmitting devices while driving, a ban on texting while driving, or a ban on manual use of cellphones. You can face up to $500 worth of fines and jail time if you do not abide by local distracted driving laws.
Drivers with a blood alcohol level of 0.08 or higher are banned from operating a motor vehicle. For commercial drivers, the limit is 0.04, and for those under the age of 21, the limit is 0.02.
In order to avoid facing fines amounting to $2,000 or more and up to 180 days in jail, it is best to avoid driving while under the influence.
Driving Without Insurance
Even though you are legally obligated to have insurance, there are drivers who still use a vehicle without coverage. If you are found to be driving without insurance, your first offense incurs fines as high as $350, and you will be responsible for paying surcharges for three years. Subsequent offenses include jail time and substantially higher fines.
First-time speeding violators will have to pay fines between $1 and $200. For more serious speeding offenses, your license may be suspended or revoked. Additionally, you may be required to attend defensive driving courses and serve time in jail.
Cheap Auto Insurance Texas
There are plenty of ways for you to find the cheapest car insurance in Texas. Aside from focusing on your credit score, the mileage on your vehicle, and choosing the right packages, you should also consider:
Maintaining a Claims-Free History
Drivers with the cleanest records are those who pay the least for their insurance. Maintaining a claims-free history as well as a letter of experience can significantly decrease your insurance premiums.
By investing in defensive driving courses, you are immediately boosting the confidence an insurance company will have in your ability to drive. You will gain the skills needed to avoid most accidents, which will decrease the cost of your insurance.
As you are able to claim stolen vehicles against your insurance, taking steps to prevent this from happening can lower your premium. Either ensure that your vehicle has factory anti-theft devices or install third-party deterrents on your own.
With the ability to have cheap auto insurance Texas, you can spend less money on being a licensed driver. By using these tips and knowing the minimum insurance requirements, you’ll be able to find the ideal provider for your needs.