Importance of Auto insurance in Texas:
Why Auto insurance is so expensive in Texas if you’re living in Texas, you must get your car insured. The minimum car insurance you must get in Texas is 30/60/25. Once you get your vehicle insured you must carry the proof of insurance with you whenever you drive. If you are caught without having the proof of car insurance you can be fined.
Types of auto insurance in Texas:
In Texas you must have the following auto insurance as mandated by the law:
• $30,000 bodily injury liability for every person;
• $60,000 bodily injury liability for the whole accident;
• $25,000 for property damage caused by the accident.
In most cases, this much of auto insurance is not enough. You must get additional auto insurance or greater coverage for these types of coverage. Other types of insurance coverage include personal injury protection, collision coverage, comprehensive coverage and uninsured/underinsured motorist coverage.
Reasons as to why is car insurance expensive in Texas:
Texas is climbing fast when it comes to the rising cost of insurance. Following are some of the reasons as to why is auto insurance so expensive in Texas.
- Expensive cars:
With rising numbers and variety of cars the need of car insurance is getting very high. Moreover, the high tech and fast cars are more expensive to buy and maintain. They also drive up the cost of car insurance.
- Number of accidents:
Number of accidents has also increased a lot. This is because of the rising number of cars on the road and fast traffic. Texas is a fast growing state where people are rushing to and from work. So the rising number of accidents makes it expensive to insure cars.
- Rate of uninsured and under insured motorists in Texas:
There is a high rate of uninsured and underinsured motorists in Texas. As a result the companies find it risky to insure motorists. So this is also why auto insurance is so expensive in Texas.
- Expensive car repair:
The cost of repair is getting very high in Texas due to the rising cost of parts. Especially in the metropolitan areas of Dallas and Houston the costs of repair are going very high.
- Increased competition in Texas:
In Texas there are about 200 companies that sell auto insurance. This competition drives the market and hence the prices up.
Factors that impact auto insurance rates:
- Driving history:
A good driving history leads to lower premiums. A history characterized by no at-fault insurance claims also leads to low premiums.
Generally young and old age drivers are riskier hence charged high premiums. On the other hand, middle aged drivers are considered safe to are charged low premiums.
Male drivers are safe compared to female drivers so are charged lower premiums.
- Type of car:
New and expensive cars are expensive to insure while old and second hand cars are cheaper to insure.