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!

Liability Auto Insurance Requirements in North Carolina

Reader’s Question:

Does the State of North Carolina have any law regarding auto insurance liability requirements?

Caitlin

Charlotte, NC

Any auto insurance company registered to do business in a state is obliged to follow that state’s financial responsibility laws. These laws are the basis for the minimum requirements auto insurance companies will offer to sell to prospective policyholders.

Following North Carolina’s financial responsibility laws, it is then mandatory for every motorist residing in that state to have minimum liability. Liability insurance pays for the damages the other motorist sustained due to an accident you caused. In North Carolina, minimum liability has coverage expressed in these numbers: 30/60/25. This translates to $30,000 for the other motorist’s medical and/or hospital expenses, a ceiling of $60,000 for medical and/or hospital expenses for all passengers in the other motorist’s vehicle (including the driver), and $25,000 repair or replacement costs for the other motorist’s vehicle and other property damages. This includes public property wrecked by the accident.

Not required by highly recommended is collision and comprehensive insurance. This will pay for damages to your own vehicle and sometimes, depending on the limits of the coverage, extends to personal property. Another type of insurance worth considering is Personal Injury Protection. This takes care of your medical expenses and automatically kicks in no matter who was declared responsible for the accident. It’s a quick and convenient way to receive benefits without having to wait for litigation proceedings. Finally, there’s uninsured motorist insurance. Although it’s also non-compulsory, this type of coverage acts as a safety net in case you get into an accident with a driver who doesn’t have any auto insurance at all.