The minimum levels of auto insurance coverage that are mandated by Texas law are: •$30,000 in bodily injury coverage per person •$60,000 in bodily injury coverage total per incident •$25,000 in property damage coverage per incident State law does not require you to purchase additional coverage, how ever the financing institution will require Comprehensive and Collision coverage.
The type of vehicle and vehicle value that you drive can have a big impact on your rate. ◾There are discounts for Anti-Theft Devices. ◾How much you drive can have an impact on your rates, because if you drive 40 miles to work then there is a higher risk that you could get into a collision. ◾The fewer accidents and tickets you have on your record, the lower your rate. ◾A & B Grades in school give teens lower rates. ◾When you bundle auto and home coverage you could save on both your auto and home insurance. Our agents have experience in finding discounts for which you may qualify, and offer other money-saving tips to help you save even more.
◾If you’re making car payments, chances are the lender will require the vehicle to have comprehensive and collision coverage. ◾The deductible determines how much you pay out-of-pocket after a covered loss. So, if you’re looking to save money, consider increasing your deductible, which will lower your auto insurance rate. ◾The age of your vehicle is another factor. If you have an older vehicle with a lower value, it might not make sense to pay for more expensive coverage like comprehensive and collision. ◾You should also consider how much liability coverage you need. Remember, if you only have $30,000 in liability coverage and you cause an accident that generates $100,000 in damages then you could be liable for the amount above your coverage limit.
Why Minimum Coverage is a Bad Idea Auto insurance is one of those things that you can never really have too much of. If you don’t have it, or don’t have enough, a significant accident could leave you with thousands of dollars worth of bills to pay. That type of calamity could bankrupt just about anyone. Minimum coverage, while satisfying state laws for auto insurance, is a bad idea for many financial reasons. If you opt to get minimum automobile insurance coverage, you are probably worried about the monthly bill. The problem with minimum coverage however, is that while you may be saving a more money each month, if you get into a major accident and are at fault, the money your insurance company pays will be capped at $20,000 for property damage to the vehicle or property that you hit and $30,000 to the person you injure. All costs above will be your responsibility to pay. If the person you’ve injured has huge medical bills, you’ll be responsible for them after your insurance coverage has been exhausted. Minimum coverage is a bad idea not just for financial reasons, but for ethical reasons as well. If you have minimal coverage, and you’re responsible for an accident that costs thousands of dollars to another person and can’t pay for any of it, you’ve burdened another person with huge debt.