About Car Insurance in Texas
The Lone Star state makes it mandatory for individuals to maintain liability coverage at all times while operating a motor vehicle. This same law is implemented by the majority of the states in the nation and is commonly referred to as the Financial Responsibility law. These laws have been developed in order to help keep uninsured motorists from utilizing the roadways and help protect residents who use the roads legally.
Additionally, as of 2008, TX implemented a system which requires insurers to notify and provide electronic proof of auto insurance to the Department of Motor Vehicles and notify of any cancellations. This allows law enforcement officers to run the license plates of automobiles and determine whether the vehicle being operated is insured or not.
In addition to the the verification system, the state also raised the minimum limits of liability in April of 2008. Previously the car insurance in Texas required was a liability policy consisting of $20,000 for bodily injury to one person, $40,000 for bodily injury per accident and $15,000 for property damage and commonly abbreviated as 20/40/15. The current requirements are now 25/50/15 and are expected to increase further to 30/60/25 which may cause an increase in premiums. Fortunately, with some smart shopping individuals can keep the cost of coverage affordable.
Keeping Texas Auto Insurance Affordable
Just like most any consumer product, Texans have the best chance of finding the best deal by shopping around. Taking the time to compare multiple quotes from several companies can not only find a cheap rate, but also an insurer with good customer service, quality products and is financially stable. Although most individuals set out for the cheapest price, these other factors should not be overlooked. Fortunately, researching companies is free and only takes a little time. Finding cheaper rates can be done easily by obtaining and comparing the prices of various carriers and can be done quickly online.There are a few valuable tips that can be taken into consideration that can cut the cost of premiums when looking for a policy. One such tip would be to consider not purchasing physical damage coverage on older vehicles; the cost of the premium combined with the deductible may not make sense financially if one were to file a claim. If an individual does need protection for physical damage, they can consider raising deductibles. In most cases the higher the deductible, the lower the premium. Also, ask for discounts when comparing. Some companies will offer a discount that others won’t and may end up providing significant savings.
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