Cheap Auto Insurance Policies in Texas

Reader’s Question:

Among the various auto insurance policies available in Texas, what’s the cheapest I can get without compromising on quality of the company or lack of coverage?

Lisa

Dallas, TX

Residents of Texas spent an average of eight hundred twenty dollars on auto insurance in year 2006, and an estimate of .5 % to 1% decrease in rates has happened since then. Compared to other states, auto insurance policies in this state are not exactly the cheapest, but they are not in the top ten most expensive, either. There are around 127 auto insurance companies across the state of Texas. Each one of them probably has various low-cost packages that they offer to residents who are thinking of tightening their budget. If you are looking for the cheapest one you can find, it would most likely help to simply look for a policy that only has the state’s minimum auto insurance requirements.

Texas financial accountability laws mandate that its drivers have liability coverage. Auto insurance liability in this state works in the following manner. For the bodily injuries of a single driver, twenty thousand dollars worth of medical expenses is owed by the insured driver found guilty of causing the accident. If there was more than one occupant in the injured party’s vehicle, a combined expense of forty thousand dollars in medical treatment is due. For any damages to property, and this includes the victims automobile, the driver found guilty must recompense a minimum of fifteen thousand dollars. Collision, comprehensive and uninsured auto insurance is also available. Since these are supplemental and not required by the state, adding these to your policy would definitely raise your auto insurance premiums. If you want the cheapest it would be best to stick to the minimum requirements.

Raising your deductible amount is the fastest way to lower your annual premiums!

Should I Buy a Policy From an Auto Insurance Broker?

Reader’s Question:

I’ve been wondering sometime now if the best way to buy car insurance is through a broker. What are my other options aside from brokers or agents?

Sylvanna

Dallas, TX

A truly good auto insurance broker can definitely help you find a reliable insurance policy for your automobile. The problem though is that truly good brokers are usually few and far-between. You have to understand that most brokers work for commissions so it would only be natural for them to promote the kind of policy or insurer that gives them the biggest profit. This may not always be to your advantage.

As a consumer, however, you do have a few options. You can do the legwork yourself and call-up every insurer you can find for their rates. Or if you have Internet access, you can go to their websites to see what they can offer. The latter will obviously be the faster and more convenient approach.

An even better alternative is to use one of the many auto insurance web comparison websites (like this one right here.) auto insurance comparison websites brings the best of both worlds and a little bit more. Like any broker, you get instant access to a wide selection of insurers and plans to choose from. Since it’s online you don’t have to schedule a meeting or go to an office. In fact, it would just take a few minutes to see which insurers have the most competitive rate to offer you. On top of that, you can get access to these rate quotes absolutely free.

Many people prefer to have a human face in every transaction, and that is definitely ok. However, one cannot ignore the advantages offered by auto insurance comparison websites. In the end, if you want to save time and effort than I highly recommend searching for your auto insurance online instead.

Types Of Vehicles That Affect Auto Insurance Cost

Reader’s Question:

I haven’t decided yet on what type of vehicle I am going to buy, can the type of vehicle affect my vehicle insurance cost?

Ronald

Dallas, TX

Most vehicle insurance company nowadays categorize vehicles depending on their class or type which will determine how much will it cost to insure. Vehicles which are expensive, powerful or speedy will be charged at a higher rate. Most of the high priced vehicles today can get costly to repair and insurance company puts a high insurance cost on them because they know that in an occurrence of an accident, insurance claims will also be higher.

Vehicle insurance can also get costly if you choose to buy the attractive or the sporty type of vehicles, specially the two door types. These types of vehicles are known to be the favorites of car thieves. In most cases, vehicle owners of these types of cars are always pressured to purchase the expensive comprehensive coverage to protect not only themselves but their vehicle. If you have enough savings and if you like sporty type of cars, purchasing a comprehensive coverage may actually be worth it even though it might cost expensive.

But to make things unbiased, vehicle insurance cost is not only based on the model or types of the vehicle, there will also be other factors. However, finding a vehicle insurance that will suit your budget requires time and effort, always make sure you compare quotes from different companies and look for the best deal.

Senior Citizen Auto Insurance

Reader’s Question:

My grandfather is getting his own car insurance. What considerations should we remember in helping him get a good insurance policy?

Efren

Dallas, TX

Senior car insurance is important since it can be very expensive as elderly people are known to be high risk individuals. Seniors are more likely to be involved in accidents because they do not pay enough attention on traffic rules.

Before you get your grandfather a senior auto insurance, you should determine first if he still has the driving skills. Your grandfather may not be suited to go on his own, especially if his health does not permit it. Conditions such as poor eyesight can impede him from getting auto insurance policy.

When shopping for a senior auto insurance, your grandfather should consider getting higher deductibles since it can mean more discounts. He should also forego collision and comprehensive insurance coverage especially if he is driving an older car.

You should also get your grandfather with a car that is least likely to be stolen. Cars that have the lowest repair expenses are also ideal vehicles to give to elderly drivers. His car should also be installed with security devices like antilock brakes, immobilizers, and similar safety features.

Tips For Getting Cheap Car Insurance in Dallas

Reader’s Question:

What do I need to know about getting car insurance in Dallas?

Bill

Dallas, TX

The amount of coverage for car insurance in Dallas, as well as in any other city in Texas, naturally follows the state’s minimum requirements. All drivers in Dallas ought to have liability coverage with at least $25,000 for bodily injury for a single person for one accident, $50,000 bodily injury for more than two people in one accident, and $25,000 for any property damage in a single accident.

This city has a population of over 1.2 million and is considered the largest metropolitan area in the state of Texas. That being the case, you can expect car insurance in Dallas to be quite high. Companies that provide car insurance in Dallas expect a large amount of claims because of the city’s dense population. In fact, the National Highway Traffic and Safety Administration (NHTSA) ranks Dallas as the 6th deadliest city in terms of car accidents. In year 2004, there were actually around 148 fatal crashes in this city. Dallas drivers really need to drive safely and get good coverage.

Car theft is another thing that keeps car insurance in Dallas at such a high rate. There were around 23,537 reported cases of car theft in this city in 2005. Although comprehensive car insurance is not required in the state of Texas, if you live in Dallas, you might want to greatly consider getting one.

Cheap Car Insurance Company

Reader’s Question:

My brother got a speeding ticket last month and when his car insurance called to talk about his premium he went ballistic for his insurers told him about the increase. He thinks that speeding in Texas is not a crime, is he right about this? If he is, then how can he make his car insurance for high risk lower?

Paige

Dallas, TX

Honestly, speeding is a crime, you may not have caused an accident yet but most likely you will, especially like Texas which is a big and crowded state too. Getting a speeding ticket usually makes people proud of themselves for being the fastest driver but when accident happens, you are called a monster if you have caused a lot of deaths. Another thing is, you are classified as a high risk driver therefore you have to get a car insurance for high risk drivers which is very different from your previous one for it is way more expensive.

If you cannot afford the car insurance for high risk premiums and you know that the reason of your high premiums is your driving record then what you should do is change your behavior on the road. If you get a speeding ticket then drive slower the next time you hit the road. If you have been convicted of DUI then make yourself sober whenever you are going to take the wheel. Doing these things does not make your premium easily go down, it takes time. And if you still cannot afford the car insurance for high risk then you can go to a more remote place, go to a quite neighborhood with few cars pass by the road every day. When you move out from the crowded city with lower risk, you will surely have a lower premium.