A Brief Overview Of Texas Auto Insurance
Texas law requires that anyone operating a motor vehicle establish financial responsibility
. This is normally handled by the purchase of a Texas auto insurance policy. New programs have been implemented to increase compliance with the law, and the state is taking the issue of uninsured motorists seriously.A new verification program allows police and other users approved by the state to verify compliance immediately. In the past, forged insurance cards were sometimes presented. Some motorists would obtain their proof of insurance and then drop the coverage. Now, officers will be able to have access in real time to the insurance status of any vehicle. The database will be based primarily on the VIN, or vehicle identification number, which is unique to every vehicle.
Currently, the minimum liability requirements in Texas are $25,000 per person injured, $50,000 total for all injuries, and $25,000 coverage for property damage. The first two of these amounts will be increased in January, 2011. The new limits will be $30,000 per person injured and $60,000 for all injuries. Even with the increased limits, these amounts may not be sufficient for all people. You might want to consider increasing your coverage or checking into an umbrella policy to help protect your assets.
There are several ways you can save money on your car insurance. The most common method is to increase your deductible. This is the amount of money you must pay yourself before the insurance company will make any payments. Therefore, if you have a $500 deductible and it will cost $2,000 to fix your car, you will pay $500 and the insurance company will pay $1,500. Because they are assuming the risk of a higher liability, the company will charge more for a policy with a lower deductible. If you have the means to meet a higher deductible, it may be worth considering.
You may be able to save money on your auto insurance if you bundle it with other coverage, such as your homeowner coverage. However, this is not always the case, so when checking for quotes, do not assume that your current company will provide the lowest rate. Get quotes from several different sources, but be sure you are comparing identical coverage limits.
Texas law does not require you to carry collision and comprehensive. These are the insurances that pay if your car is stolen or damaged. Liability, which is required by law, pays for damages or injury to others. If you still owe on your auto loan, the lender will normally require that you keep this coverage until the loan is paid off. If your car is paid for, you have the option to carry only liability. The age and value of the auto should guide you in this determination.
Those who have been free of tickets or accidents for at least three years should ask their agents about TAIPA removal. TAIPA, or the Texas Automobile Insurance Plan Association, carries higher rates. By law, the insurer must remove you if your record for the last three years reflects no accidents or tickets. This will result in a lower rate for you.
by: Lena Shattuck