If you are looking for auto insurance in texas, you might want to check out golden rule insurance company who offers cheap auto insurance online. Of course there are plenty of other companies that also offer affordable rates, but first you should understand Texas auto insurance requirements.
Texas is a tort state, which means that the driver is financially responsible for any damage and injury they cause in an accident. Purchasing Texas Auto Insurance will fulfill this legal requirement.
Texas auto liability minimums are 20/40/15 which translates to $20,000 per person for injuries you cause to the other party to a total of $40,000 for all claims and up to $15,000 for damage you cause another persons property. These are the minimum requirements and it is recommended that you carry much higher levels of liability insurance.
In addition to required liability coverage, Texas drivers may choose to purchase coverage for some “first party benefits”. These include compensation for medical expenses, loss of income, and loss of services. These benefits apply to every accident regardless of fault.
Uninsured and underinsured motorist policies also cover your expenses, but these apply in the event that you are struck by a driver with inadequate liability insurance. These policies are not required, but they’re relatively inexpensive, and can provide a lot of protection.
Texas auto insurance companies will also offer optional policies such as collision and comprehensive coverages.
Be warned the mandatory requirements are way too low for the average cost of serious injuries and financial loss from an automobile accident. All insurance agents recommend you purchase much higher levels of liability insurance.
Auto insurance companies also offer optional coverage such as medical payments, collision, comprehensive, and uninsured and underinsured motorist’s bodily injury coverage.
How your insurance rates are set in Texas is different than many other states. The rates are determined by the behavior and accident rates of all Texasn drivers. The cost of insuring Texas drivers’ including settlements and legal fees is totaled for the entire state and divide it up between everyone.
Of course these costs are not spread around evenly. The percentage of these costs that you are going to pay is determined by things like your driving record, your age, where you live, and the kind of car you drive.
Not all insurance companies compute their figures the same way so a driver with the same profile can land up with different rates depending on the insurance company. That’s why it is so important to get several quotes before purchasing insurance.
As mentioned previously liability is the most important element of your entire insurance policy. Make sure you purchase adequate liability insurance to protect your assets, because within a split second, the time it takes for an accident to occur, your life could be left in financial ruin if you are not adequately covered.
There are also other coverages you can buy such as collision, comprehensive, rental, and even towing and road side assistance. You will need to determine what your personal needs are.
When comparing insurance make sure you compare equal policies. Make sure the deductibles are the same, that the exemptions or fine print reads the same and that the liability is for the same amount. It is important to compare policies of equal quality to make sure your cheapest quote truly is your cheapest quote.
In less than a half hour you can have all the quotes you need and be on your way to buying cheap Texas auto insurance. Why waste time? Get busy!
By: Sher Matsen
Posts Tagged ‘Liability Insurance’
Auto Insurance In Texas
January 24th, 2010Common Auto Insurance Terms – Car Insurance Terms That You Need to Know
November 28th, 2009
Before you start shopping around for auto insurance, you should get a handle on some of the common car insurance terms. In all reality, the more you know about car insurance, the better chance you’ll have at finding the perfect coverage for your vehicle. Sure, you’d love to think that all companies would be upfront and honest with you about what you need and what you don’t need. But come on, what company doesn’t want to make some profit? This is why having the basic knowledge when it comes to car insurance can make all the difference when it comes to your auto coverage. Read on to learn some common auto insurance terms and then see how much money you can save!
Absolute Liability
This is liability without fault, also known as liability without regard to fault or strict liability. You may see this pop up when something considered contrary to public policy happens, even though the event wasn’t intentional.
Liability Insurance
In a nutshell, liability insurance is risk transference. Not only does give you protection against loss that arise from third parties, it covers your legal liability from injures to other people or their property.
Collision Insurance
This type of insurance is optional. Collision insurance provides coverage for the insured’s vehicle, subject to a deductible, that is involved in an accident. Basically, this covers you whether the accident was your fault or not.
Deductible
Also known as excess, this is the amount you agree to pay toward the total amount of an insured loss, whether it is per claim or per accident. Usually a fixed rate, the deductible must be paid before the policy benefits can be applied to a claim.
Uninsured and/or Underinsured Coverage
This type of insurance is great protection for you and your family if you happen to be hit by someone without insurance coverage. Having uninsured or underinsured coverage allows you and your family’s bodily injury to be paid for.
Comprehensive Coverage
Comprehensive insurance covers your vehicle in case of non-collision related incidents such as fire, theft, weather, impact with animals and vandalism.
Gap Insurance
This insurance is good for people who have just purchased a new vehicle. In a nutshell, new cars depreciate right after leaving the dealership lot. Gap insurance covers the difference between what an insurance company says your car’s worth and what you would actually owe on the vehicle.
Gap insurance usually only covers theft and accidents, but that can vary depending on the insurance policy. You can also purchase gap insurance from the dealership. However, you can expect to pay even higher premiums.
Property Damage Coverage
This covers any damage you may cause to another’s vehicle. Basically, if you cause it, you’re covered.
Claim
This is your request for reimbursement concerning a loss covered by your auto insurance policy.
Full Coverage
Actually, full coverage isn’t really what it sounds like. Technically, full coverage is a combination of collision and comprehensive coverage, meaning that your car’s physical damage is covered.
Secondary Driver
Also known as an occasional driver, this person is covered for driving the insured vehicle. However, this coverage does not mean that they’re the primary driver.
Shop Around To Find Cheap Auto Insurance
Familiarizing yourself with the above common car insurance terms will result in you making a wise decision when it comes to your auto coverage. Take your time and shop around before committing to a provider and you will be find the cheapest auto insurance company that will still meet your coverage needs.
The above terms are just the ones most frequently talked about or that affect the majority of drivers on the road. There are more common car insurance terms, but they are mainly state specific. The best way to find out what’s required in your state is by visiting your local DMV’s website.
By: James J. Robinson
Auto Insurance For Your Kids
November 18th, 2009
Auto insurance can be very expensive for young drivers. Parents are often worried (with good reason) when a young adult reaches driving age. Here are some things that can help manage the risk and cost.
My opinion is that a young driver should generally not be given a car and insurance without cost or obligation. If the young adult has to work or make a significant household contribution they may have more respect for the privilege being granted. It could also be helpful to have a written agreement about your rules for granting driving privileges. In most states a parent can withdraw permission for the young adult’s driver’s license. This should be considered if the young driver shows recklessness. Many insurance companies have a young driver’s safety program. Your agent may have information on this. Your insurance agent may also be willing to consult with the new driver about how the family’s policy will be affected by an accident or ticket for the new driver. To help keep costs down it is very important for the new driver to avoid tickets or accidents. A couple tickets or accidents could result in the entire family’s auto policy costs to be extremely high!
The largest factor to holding down a young drivers insurance cost is to have liability insurance only on the new driver’s vehicle. That would only be advisable if the cash value of the young persons vehicle is low and you can afford the cost of losing it. The type of vehicle driven can also make a significant difference. (In general the type of car the young adult doesn’t want will have the lowest insurance cost, for example a station wagon vs. a high performance sports car.) Most insurance companies give a discount if the new driver completes an approved safety course. There may also be a good student discount. Check with your insurance agent about available young driver discounts. If the rate for adding the new driver doesn’t seem reasonable you may want to shop rates from different companies. One item that you should not skimp on is the amount of liability coverage. THE STATE MINIMUM IS NOT ENOUGH PROTECTION! Consult with your agent and be sure you and the new driver have enough coverage.
By: Glenn Lamb