Texas Teen Auto Insurance

Reader’s Question:

I am 19 years old and will be getting my driver’s license soon. Where can I get free auto insurance quotes in Texas?

Jill

Austin, TX

Surfing the Internet is one way of ensuring that you get free auto insurance quotes with the most competitive rates especially if you are a first time driver.

Firstly, you should know all the insurance requirements of the State of Texas. 20/40/15 coverage is what it is generally called. These numbers represent the maximum that the carrier will pay for damages you have inflicted. $20,000 will be for a person’s treatment of bodily injuries. Meanwhile, if there are two or more passengers in the other party’s vehicle, your insurer will pay up to $40,000 for their bodily injuries. If there were properties ruined, and these may include any public or private property, like the other driver’s vehicle, then your insurer will shoulder up to $15,000 to cover for these damages.

If your vehicle is financed, then your financing company will definitely require you to buy Collision and Comprehensive Coverage. This will assist you financially if repairs are needed following an accident. This insurance also pays for the cash value of the vehicle if it was declared totaled.

As a first time driver, you need to know that buying as much auto insurance as you can afford is the best way to protect yourself. So getting Personal Injury Protection (PIP) would be a very wise thing to do especially now that medical care is getting expensive. This insurance will pay for your hospital care and rehabilitation. It also provides much needed financial assistance if you are unable to get to work because of sustained injuries.

Additionally, Uninsured Motorist Insurance is a safeguard against financial difficulty following accidents where a driver without auto insurance is not able to pay for your medical care and vehicle repairs.

Now, that you know all these, you may obtain comparison rates from websites that offer free auto insurance quotes. This way, you know all your options and get the best auto insurance for your money.

 

Auto Insurance For DUI Drivers in Texas

Reader’s Question:

My auto insurance rates have fairly increased because of a DUI in Texas, so I am looking for other companies that give free auto insurance quotes. Can you advise me on what to look for when researching on auto insurance coverage?

Zach

Dallas, TX

The State of Texas has the highest number of traffic accidents due to drunk driving. In the year 2006 alone, 39% of all traffic mishaps are attributed to driving under the influence and almost four thousand people have fallen victim to this violent and irresponsible act. It is for this alarming increase in DUI statistics that the State of Texas has mandated to punish offenders dearly. With a first time DUI citation comes two cases filed against you:

One is taken action by the Texas Department of Motor Vehicles (DMV) to pursue suspension of your driver’s license. In here, you will get to pay enormous administrative fines and other surcharges and could amount up to $2,000. The DMV court may also rule to jail you for at least three days but not more than three months. And a 90-day suspension of driver’s license will also be ordered.

The second case triggered by the DUI offense is a criminal one especially if there were considerable damages to people and property. In here, your other assets and properties are at risk of government sequestration especially if your auto insurance was not able to pay for all of the damages you caused. Bear in mind that penalties increase with subsequent DUI citations. Your auto insurance will also be greatly affected since you will be deemed as not a favorable risk by your insurer. So you can expect a steady increase in you premiums every year.

However, companies use different rating systems when assessing a client’s premium. So you may want to research on insurance carriers and their prevailing prices. When you do this, get the comparison rates of the same coverage you want. You may obtain free auto insurance quotes from websites of insurance carriers licensed to do business in Dallas.

 

Driving Record and Auto Insurance Rates in Texas

Reader’s Question:

I have a clean driving record for three years now here in Texas, but I’m wondering why my auto insurance rates are steadily increasing. Do I really need to have auto insurance?

Robert

San Antonio, TX

The State of Texas has financial responsibility laws to protect motorists from financial difficulty following an unfortunate car mishap. Motorists comply with this insurance requirement by purchasing auto insurance coverage for their vehicles. Although you have a clean driving record, you must still maintain your auto insurance coverage. If you do not, or do not have adequate coverage, the State of Texas will obligate you to pay as much as $350 as penalty for the first violation. Remember that fines will definitely increase with the next offense. Your third one could also lead to revocation of your driver’s license. And in some cases, not only will the vehicle’s registration be cancelled, but the car can also be confiscated by the state.

There are numerous factors that affect the increase in auto insurance rates. However, knowing how to lower it can prove to be very rewarding financially. Since you have mentioned that your driving record is spotless for three years now, then you will definitely be eligible for lower rates. Most insurers also give discounts to drivers who have successfully completed the defensive driving course. Other insurers give competitive rates to policyholders with cars that have safety features in them such as airbags, automatic locking seatbelts or crash resistant door pillars. Drivers who share a ride or carpool can also avail of discounts from their auto insurance companies. Contact your local auto insurance agent. Do not hesitate to ask for ways to lower your insurance rates.

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!

Drunk Driving and Auto Insurance Cancellation

Reader’s Question:

My 18-year-old sister and I share my car, and she is listed in my auto insurance policy. If she was arrested for drunk driving in Texas, will my policy be canceled?

Cynthia

Fort Worth, TX

The State of Texas has been reported to have the highest number of alcohol-related road accidents. Based on the Texas National Highway Traffic Safety Administration survey, 70 Texans sustain injuries or are killed in accidents every day. A shocking 11% of drunk drivers arrested were minors under the age of 21, the state’s legal age for alcohol. It is for this reason that tough laws have been put in place to apprehend drivers who have been driving while drunk or intoxicated.

First-time offenders are obligated to pay a minimum fine of $1,000 but not more than $2,000. On top of that, administrative fees will be assessed. Texas has also imposed a surcharge fee to first-time DUI offenders of $1,000 annually for three years. Moreover, $2,000 surcharge will be paid yearly for three years if the blood alcohol level (BAC) is 0.16% or double the state’s statutory limits. If convicted, minimum jail time of 6 days will be imposed. Driving privileges will be revoked for a year although the car will be spared from the state’s impound.

Your sister, who you obviously feel may be involved in an alcohol-related arrest, should be restricted to use your car. This will save you and your family from possible financial difficulty. Even if your auto insurance will cover the liability, the statutory fines will be shouldered by the offender. And although your driving record will not include any of her potential demerit points, your auto insurer will still review her record since she is listed in your policy. If she indeed gets into any alcohol-related accident which she caused, then your auto insurer will find her an unfavorable risk. This may cause possible refusal of your auto insurance policy renewal if not complete cancellation.

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.

Are You Looking For Cheap Monthly Car Insurance in Houston?

Reader’s Question:

Hi! I heard that usage-based system is widely encouraged by insurance companies as an alternative insurance policy over the conventional calculated-base premiums. Is there a car insurance in Houston that includes this? What are the possible benefits of this system?

Greg

Houston, TX

Usage-based system calculates the basis for premiums by usage. Calculating for the cost of your premiums on the basis of usage can be done in many ways. One is through odometer-reading, to calculate for the miles coverage. Odometer-based is a type of insurance policy wherein customers get their insurance through buying prepaid miles. Insurance companies sometimes refer to it as Pay-Per-Drive policy. Through this policy, an individual is entitled for insurance protection coverage up to a certain point of specified miles driven. This is how it works – “you buy miles, you buy protection” – per mile coverage. It’s like getting a retail value out of your car insurance. As the term Pay-Per-Drive itself implies; it means that if you are driving, you are consuming your insurance coverage as well. You will get charge of premiums only by the time you use your vehicle. Some people prefer this type of insurance because they find it economical considering you pay less for insurance if you drive less.

The other type, the GPS-based system, is a usage-based insurance policy for which the state of Texas is considered one of the pioneers in utilizing this system. However, due to privacy concerns and policy holders finding it rather costly, they abandoned the system and discontinued it in year 2000.

Concerns are brought up for GPS-based system and suddenly gave rise to another breakthrough, the OBDII-based system (on-board diagnostic/telematic device) which record and transmit information such as speed, time, and miles coverage. It is indeed another breakthrough without the expense of having to invade someone’s privacy. It never brought any information of your whereabouts or locations, it only transmits enough information needed for calculating your premiums, and customers find it rather likable, considering you can avail for discounts as one of its benefits. You can find car insurance in Houston that has this option if you look around.