Best Auto Insurance in Texas Overview
E-Boutcar.co – Everything’s bigger in Texas, at least that’s what they say. And if you live here, you’ll probably agree with this statement, especially when it comes to your Best Auto Insurance in Texas.
Surpassing the national monthly average by a few dollars might not sound that bad, but compared to North Carolina (the cheapest state in the south and the nation), Texas is paying an average $70 more per month. Don’t be discouraged though, when I went on the hunt for coverage in the Lone Star State I found $388 in savings.
I checked yearly premiums for the minimum coverage required in Texas.
GEICO was my best quote at $401, and State Farm was close behind at $452. Texas Farm Bureau and Progressive topped the chart both breaking $700.
I cannot generalize that these companies will give you your lowest of highest quotes; auto insurance premiums are based on a wide variety of information that will change, possibly drastically, per person.
Each company calculates the same information in different ways. One company may place more emphasis on your sex and age, while another may be more concerned with your employment status and profession. This is why you should make an effort to check as many companies as possible. With every new quote comes the possibility of hundreds in savings.
All of my quotes were completed using each company’s personal online quote tool. Each one took approximately 5-10 minutes to complete.
The process could stretch a bit longer if you have any claims or traffic violations to report, so it’s safe to budget 15 minutes per quote. If for any reason you need to, or would prefer, to contact agencies by phone to secure a quote, be prepared for a longer process.
In my experience, calls can extend 15-20 minutes. Even still, if you find over $300 in savings like I did, that’s time well spent.
It’s Best to Shop for a New Policy Every Couple of Years
In a study produced by Earnix, 68 percent of all Best Auto Insurance in Texas companies polled made strategic pricing changes within a year in order to produce greater profitability. In order to maximize profits, insurance companies have begun using a tool which analyzes information outside of the traditional risk-profile. Complex algorithms analyze your personal data like shopping habits and social media interactions (which is gathered through data mining of big data) to determine how likely you are to look for better prices over time. The process is called price optimization. If you are found to be undeterred by price changes or don’t seem to be concerned with finding your best deal, insurance companies will starting pushing the boundaries of your premium to see how much you’re really willing to lay down.
The act of shopping and gathering quotes from multiple providers will produce a win-win scenario. First, you might find grand savings, the likes of which you couldn’t have imagined! Especially if it has been awhile since you’ve shopped around. Second, even if you find that the policy you currently hold is still your best deal, you’ll also be showing the insurance companies that you aren’t afraid of leaving for a better price. This could save you from incremental price hikes with the purpose of simply stretching your wallet as far as it will open.
Automobile Insurance Made Easy
Texas law requires people who drive in Texas to pay for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other driver’s car and pays other people’s medical expenses when you’re at fault in an accident.
If you buy insurance to meet the state’s financial responsibility law, you must buy at least the minimum amount. The current minimum liability limits are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25 coverage.
Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the other driver’s costs if you’re in an accident. Other drivers could sue you to collect the difference. Consider buying more than the basic limits to protect yourself financially.
Liability Best Auto Insurance in Texas doesn’t pay to repair or replace your car or to treat your injuries. Other types of coverages such as personal injury protection, uninsured or underinsured motorist, medical payments, collision, and comprehensive – can help you pay for these expenses.
Beat the Average Premium: 9 Ways to Snag Cheap Car Insurance Rates
As the second largest state in the country, Texas is a widely diverse place, and a ton of factors come into play when insurers calculate your rates. Some of them are uncontrollable, but a few are quite simple to take advantage of! Take a look below to see what I mean
Why are Texas’ rates so expensive?
Generally speaking, rural states have lower average Best Auto Insurance in Texas premiums. And with a 96 percent rural landmass, you might think Texas would be a leader of cheap rates. But when this state goes big, it really goes all out. Back in 2012, Jerry Johns, president of Southwestern Insurance Information Service, said, “Texas is a fast-growing state, and in cities like Dallas, Houston, and San Antonio, the population density is contributing to more accidents, particularly where texting, speed, or alcohol are involved.”
Mr. Johns was quite correct in his assertion of these fast growing cities. Three of the top ten largest cities in the entire country are in Texas; more than any other state. The Texas Tribune noted that between 2010 and 2014 the city of Austin had the largest population increase of any city in the United States, growing by 15.5 percent from 790,390 residents to 912,791. Fort Worth and San Antonio also made the list, both increasing by almost 10 percent in total.
New or Additional Cars
If you buy another car, your policy will automatically cover it with limitations.
Best Auto Insurance in Texas companies must give additional cars the same amount of coverage as your car with the most coverage. For example, let’s say you have two cars – one with liability coverage only and one with liability, collision, and comprehensive coverages. If you buy a third car, it will automatically have liability, collision, and comprehensive coverage.
Insurance companies must give replacement cars the same coverage as the car it replaced. For example, if you trade in an older car that had only liability coverage, the new car will automatically have only liability coverage.
Be sure to tell your insurance company within 20 days if you buy a new car. You could lose coverage on an additional or replacement car if you wait longer to tell your insurance company.
Rental car agencies offer collision damage waivers and liability policies. The collision damage waiver isn’t insurance. It’s an agreement that the rental company won’t, with some exceptions, make you pay for any damage to a car you rent.
If you have Best Auto Insurance in Texas, your policy might already cover damage to a rental car, but the coverage might be less than the value of a rental car. Read your policy to know what’s covered and the coverage limits. If your coverage limit is too low, consider increasing it. You’ll pay more in premium, but it might be cheaper than buying additional coverage through the rental agency, especially if you rent cars often. If you aren’t sure if your policy covers damage to a rental car, ask your agent before you rent the car.
If you don’t own a car, but borrow a car often, you can buy a nonowner liability policy. A nonowner policy pays for damages and injuries you cause to others when driving a borrowed car, but it doesn’t pay for your injuries or damage to the car you’re driving. Some policies provide only liability coverage on a rental car.
Affordable auto insurance coverage in Texas
Since 1978, Texas State Low Cost has helped thousands of Texans with their Best Auto Insurance in Texas needs. Our friendly specialists will help you find the right coverage at the right price. We offer low rates and excellent service, even for hard to insure drivers. If you have had a ticket, an accident, or DUI – that’s no problem! We can help.
Beyond our deep industry expertise and friendly, dependable service, Texas State Low Cost customers choose us again and again because we offer:
Affordability. We work with many carriers, and as a result, we can shop our customers’ policies with a variety of competing insurers. This means that, typically, we offer lower rates than the big, direct insurers.
Quality. All of our brokers are licensed professionals – not just sales representatives. They are dedicated to their profession and are committed to being a trusted resource for you and your family.
Convenience. We know you are busy, and your time is valuable. That’s why at Texas State Low Cost, we’ve made it easy to get the service you need, when you need it. Our customers enjoy extended hours (we’re open on Saturdays!) and a 24 hour claim service.
Local. Though we’re backed by the 19th largest Best Auto Insurance in Texas provider globally, all of our brokers are local Texans: They understand where you’re coming from and can help you find what you’re looking for.