New Texas Auto Insurance Rules

Getting auto insurance everywhere is pricey, and sometimes rules change. For example, in Texas. Here is an article by Humayun Altaf about these changing rules.

Texas Auto Insurance - New Texas Auto Insurance Minimums and Their Implications

Statistics in Austin and other Texas cities show that even though the number of car accidents is not changing dramatically, medical costs, resulting from collision are going up. This has forced the introduction of new Texas auto insurance minimums from January 1st 2011. It is worth learning more about the new requirements, irrespective of whether you plan to buy another car or you are looking to buy your first vehicle. This will help you find the most affordable deal for your needs on the market.

Drivers and vehicle owners in the state are now required to purchase bodily injury liability coverage with minimum amount of $30,000 for an injured person and with a minimum amount of $60,000 per accident. The increase in the minimum amount of liability coverage per person is $5,000 or 20%. The increase in the minimum liability coverage per accident is $10,000, which is also 20%.

The minimum amount of property damage liability coverage has not been changed. The amount you have to have is $25,000. According to state regulations, you are not required to purchase personal injury protection (PIP) coverage and uninsured motorist and underinsured motorist (UM/UIM) bodily injury coverage.

Insurance analysts have calculated that these new Texas auto insurance regulations have resulted in a 2% to 3% increase in the car insurance premiums. This is not a large rise in prices, but it further increases the need for shopping around for affordable packages and comparing multiple quotes. Furthermore, it has been estimated that drivers and vehicle owners who have many tickets and/or have been involved in a car accident and found responsible will have to pay an insurance price that is on average 7.6% higher that the one before January 1st 2011.

The good news is that the Texas car insurance prices fell by 16% in 2010. This means that even with the new increase of up to 3% or 7.6% respectively, drivers and vehicles owners will still be paying less for a policy than in 2009 and 2008.

It has been estimated that with the introduction of the new minimums, the lowest premium that a driver and a car owner in Austin, for instance, has to pay is now $450. With such a policy, you will be able to meet the Texas car insurance regulations and register your vehicle. Even though the lowest premium price is affordable, most drivers and car owners in the state are expected to pay over three times more than the lowest possible amount. Since the average amount of insurance residents of the state buy is $1,518, not it can go up to $1,556. This will be slightly higher than the average for the country, which is $1,538.

Thankfully, you can save on Texas car insurance by comparing as many quotes as possible to find the most affordable policy. Furthermore, you can take advantage of various available discounts. These include safe vehicle discounts, safe driver discounts and even senior citizens discounts. It should be pointed out that even though the new premium prices are higher, it may not be wise to raise your deductible to lower the monthly insurance costs, unless you are able to cover for this higher financial risk.

Consider the new Texas auto insurance regulations as well as your personal circumstances as a driver and car owner to choose the best possible policy.

Looking for cheap Austin Auto Insurance? Get and compare multiple absolutely free Austin Car Insurance quotes now!

Source: EzineArticles.com.

Thank you, Humayun! That cleared up some questions.

Nadav

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