Texas State Low Cost Insurance

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Texas State Low Cost Insurance

If you’re a proud resident of Texas, you are required by law to have auto insurance if you operate a motor vehicle. From Houston to Austin and everywhere in between, coverage is necessary. If you need the cheapest possible rates, then check out Texas state low cost insurance. You don’t need to go broke getting your car or truck covered.

Rates start as low as $20 per month for qualified drivers. Apply now for a free, no-obligation Texas state low-cost insurance quote. Start by entering your zip code. 

Texas State Low Cost Insurance

Texas State Car Insurance Laws

State law requires that Texas drivers are required to pay for damages if they cause an auto accident. It means securing minimum Texas liability insurance in the least. Liability is a type of coverage that pays to fix or replace the no-fault driver’s vehicle. It can also pay medical expenses if that driver was injured during the accident. 

Keep in mind that liability coverage only pays for accidents in which you were at fault, and the coverage itself is limited. In most cases, to protect yourself financially, you should look into getting collision or comprehensive coverage.  

How Much Auto Insurance Coverage is Required by Texas Law?

All drivers who are licensed in the state of Texas are required to hold liability insurance that covers both bodily injury and property damage. They must have, at the least, the following limits:

  • $30,000 bodily injury per person
  • $60,000 bodily injury per incident
  • $25,000 property damage per incident

Optional Coverage

There are a few optional coverage choices available in the state of Texas. While the law does not require them, they are worth considering to give you better protection and peace of mind. These include:

  • Collision Coverage
  • Comprehensive Coverage
  • Customized parts Coverage
  • PIP (Personal Injury Protection)
  • Uninsured Drivers Coverage
  • Gap Insurance

How Much is Auto Insurance in Texas?

Auto insurance can vary greatly depending on how much coverage you purchase, what company you go through, and what kind of car you have, among other factors. On average, Texas state low cost insurance rates average about $1,330 per year.

The average costs differ depending on multiple factors, and each insurer weighs the overall factors uniquely. For example, the average cost of insurance in Dallas for men is $1,329 per year, while it costs $1,383 for female drivers. People in Dallas pay much more for the same coverage than drivers in the rest of Texas. Overall, annual state average insurance costs are $934, which is below the national average.

The national average is $889, making the Texas state’s car insurance costs 5% cheaper. Premiums in Texas have been steadily increasing over the past few years. This phenomenon can be attributed to an increase in population, higher claim costs, and more stolen vehicles.

Your specific Texas rates may vary depending on your current driving record, credit history, and how many claims you have filed in the past, and the zip code where you reside.

Factors Behind Texas State Low Cost Insurance

By law, it is required that Texas auto insurance rates are fair and not at all discriminatory. They also cannot be too excessive. People of all income levels and situations should afford the most basic Texas liability auto insurance coverage.

Texas Department of Insurance (TDI) 

Most insurance companies in Texas use their own rates, then file them with TDI, the Texas Department of Insurance. TDI can then ask insurance companies to refund the money to policyholders if they deem the policy to be unfair or the rates too high.

TDI Address: 333 Guadalupe, Austin, Texas 78701

Phone: 800-252-3439

Factors that Affect Your Texas State Low Cost Insurance Premiums

Underwriting is nothing but the process used by insurance companies to determine whether they can sell insurance to you and how much they should charge. They consider many different factors in assessing premiums.

These factors will, for the most part, set your premiums. All underwriting guidelines have to be approved by TDI. The factors most commonly used to determine rates include:

  • Age and marital status: Unmarried men under 25 and unmarried women under 21 are known to have the highest premium rates. On the opposite end of the scale, those married and over the age of 45 get hefty discounts.
  • Driving record and history of claims: You’ll save a lot of money if you have a clean driving record with no claims filed. If you have had recent accidents or tickets filed under your name, your premiums may rise in cost. Companies will charge more money if you have been recently convicted of a violation. There may even be a surcharge that can affect your premium for up to three years.
  • Where you live: Did you know that insurance rates are higher for those who live in cities than those who live in more rural areas? That is because there is more traffic in the city, meaning a higher risk of accidents.
  • Your specific car: If you have a luxury sports car, you will be paying more for insurance than someone who has a basic Toyota Corolla. The make, model, and manufacture of your vehicle, as well as included amenities and features, can determine your insurance rates.
  • What you use your car for: What is the primary function of your vehicle? Do you use it to drive to and from work? If you only drive it now and then, you likely won’t have to pay as much for your insurance policy.
  • Your credit report: It’s an unfortunate truth that your credit score can make or break almost any kind of policy or loan you may want to get. You can bet that any insurance company in Texas will take a look at your credit to determine if you are financially responsible enough for insurance.
  • If you were previously uninsured, did you drive uninsured for over 30 days in the past year before applying for Texas state low-cost insurance? If so, companies will charge you more.

Getting Texas State Low Cost Insurance Discounts

There are many different types of discounts that will help you get Texas state low cost insurance. While each insurance company has different ones, you can often qualify for several. These include:

  • Driver education courses
  • Young driver education courses
  • Defensive driving courses
  • Students with good grades
  • Active Military or Veteran 
  • Multiple cars on one policy
  • Good Driver
  • Low Mileage Discount
  • Senior Citizen Discount
  • Bundling auto and home insurance 

Additionally, you can qualify for a discount if your car includes:

  • Airbags
  • Automatic daytime running lights
  • Automatic seat belts
  • Anti-theft devices (alarm, LoJack, etc.)
  • Anti-lock brakes

Proving Your Financial Responsibility

You’ll get a proof of Texas auto insurance card when you buy your Texas state low cost insurance policy. You need to keep this card in your vehicle at all times. This is because you may be asked to show it when:

  • A police officer asks for it upon being pulled over.
  • You have an accident.
  • You renew your car’s registration (or register a new vehicle)
  • You get a new driver’s license.
  • You are undergoing a car inspection.

Different Texas State Low Cost Insurance Coverage Types

Your Texas state low cost insurance can cover various factors depending on which kind of coverage you have. For example, Texas state low cost insurance Temple TX or Austin Texas can typically pay for the repair or replacement of your vehicle, as well as medical expenses that you may suffer during an accident. Other costs include towing, rental car expenses, court fees, and more.

As well as what’s included, you should pay special attention to what is not included in your policy. You should know about special exclusions, so you aren’t caught unaware when something isn’t covered. Common exclusions include:

  • Unnamed drivers: The policy will only cover the drivers whose names are listed on the policy.
  • Racing: If someone used your car for racing, your insurer would not cover your damage or fees.
  • Intentional acts: If you proved that you intentionally caused damage to your property or person, you would not be covered.
  • Ride-booking: Using your car for Lyft or Uber ride-sharing will exclude coverage.

A review of the different types of insurance policies available in Texas and what they cover can help you better understand what kind of plan would work best for you. Here is a breakdown of the insurance types you can consider buying:

1. Liability Coverage

This is the type of insurance policy that meets the state’s requirements in its most basic form.

It pays for the following expenses:

  • Car replacement or repair costs
  • Medical costs
  • Funeral costs
  • Lost wages
  • Pain and suffering costs
  • Car rental for the other driver
  • Costs of your defense, attorney fees, and up to $250 for bail

Who it covers:

  • Yourself and your family members (residents and blood-related or adopted individuals listed on the policy)
  • Others who drive your car with your permission
  • Family members are going to school away from home.
  • Spouses living elsewhere

Depending on the type of policy you have, you may also be covered when you drive someone else’s car. You are not covered for a company car, though. Speak with your agent about what kinds of vehicles are and aren’t covered by Texas liability only insurance. Some policies may not even cover others who live with you, not even family members. It’s essential to declare the names of those who you want to be covered by your policy. As previously states, liability car insurance is the cheapest but provides “bare bones” coverage. If you are in a severe accident, it likely won’t pay for the medical costs and vehicular damage that results.  

2. Collision Coverage

It is the type of insurance that covers damage done to your own property. If you owe money on your car, you need to have collision coverage. Also, if you lease a vehicle, you will need to get it.   

What it pays for:

  • Cost of repairs (as long as the company decides your car can be fixed)
  • Cash value of your vehicle (If your car cannot be fixed)

Who it covers:

  • Your family members
  • Others are insured explicitly under your own policy.

3. Comprehensive Coverage

It is another type of insurance policy that does not include collision coverage. Your lender may require you to have it if you’re looking to get a loan for the money you owe on your car. Comprehensive will be required if you lease a vehicle. 

What it pays for:

  • Replacing or repairing your car if stolen or damaged due to vandalism, falling objects, or anything other than a collision
  • Rental car (possibly)
  • Cash value of your car (minus your deductible)

4. Medical Payments Coverage

It is the correct type of policy to have if you are ever seriously injured in an auto accident.

What it pays for:

  • Medical bills
  • Funeral bills from an accident

Who it covers:

  • You
  • Family members
  • Passengers in your car
  • Other injured parties (regardless of who is at fault for the accident)

5. Personal Injury Protection (PIP)

Many states require PIP as part of your insurance policy. It’s essential to have if you suffer from lost income or wages due to an accident.

What it pays for:

  • Same as medical coverage.
  • Plus, 80% of your lost income.
  • Cost of caregiver for a medically injured person.

Who it covers:

  • You
  • Family members
  • Passengers in your car
  • Other injured parties (regardless of who is at fault for the accident)

Most insurance policies do include PIP automatically. However, you can choose to opt-out of it in writing. Companies are legally obligated to offer up to $2,500 in PIP coverage.

6. Uninsured and Under-insured Motorist Protection (UM – UIM)

This is an excellent policy to have if you suffer an accident at the hands of someone who is not carrying any auto insurance. It can save you financially and is not that expensive to add to your existing policy.  

What it pays for:

  • Costs related to an accident that an uninsured driver caused
  • Expenses from a hit and run driver
  • Personal property damage

You do have a $250 deductible for property damage with this policy. While you have to pay this initial $250 for your damage, the insurance company will pay the rest.

There are two different types of UM/UIM coverage:

  • Bodily Injury UM/UIM – covers medical bills, pain and suffering expenses, lost wages, permanent disability, and more. There is no deductible.
  • Property Damage UM/UIM – pays for car repairs, rental car needs, and the damage done to property inside your car.

7. Towing and Labor Coverage

What it pays for:

  • Towing charges when your car is damaged beyond repair
  • Labor charges
  • Flat rates for repairs 

8. Rental Reimbursement Coverage

What it pays for:

  • A set amount of money each day for a rental car if your vehicle is damaged or stolen. This policy only works if your car was damaged by something covered in your policy, such as vandalism or theft.

Getting Texas State Low Cost Insurance for Younger Drivers

Parents can add their children to their Texas state low cost insurance plan as long as they meet their financial responsibility requirements set out by the state of Texas. This can bring down a lot the cost of insuring a young driver under the age of 25. While younger drivers can add a costly expense to the bill, it is still overall cheaper than putting them on a different plan.

Some auto insurance policies require that all drivers are named on the policy. If you are unsure whether or not you need to name all drivers, get in touch with your insurance company right away and confirm all of the drivers that should be on the policy.

If a teenager mainly drives one of your vehicles, their rate will be based on the type of car it is. You can expect the teenager’s rate to be the highest in the household due to the teen being a high-risk driver.

It’s a smart move to put a teen driver in a certified driver’s education course to save money. It can help lower Texas car insurance rates by 10% or more. Also, make sure the young motorist has an old, cheap car. Stay away from sports cars and newer vehicles that can be more than 50% more costly to insure. 

Texas High-Risk Auto Insurance

All insurance companies will try to determine whether you are worth the risk before deciding to renew your auto insurance policy. They will look for things such as driving records, claims filed, credit reports, and more. 

If you have an accident or a claim on file, it can increase your premiums’ cost a lot. If you have recently been convicted of a DUI, your insurer may cancel your policy, and it could be challenging to find a Texas insurer that offers you future coverage.  

If you’re deemed to be a high-risk driver, you may see some added surcharges on your plan. You can be charged much more for coverage if you have any of these violations:

  • Accidents
  • Moving violations
  • DUI/DWIs 
  • Negligent or Reckless Driving
  • Driving without a license
  • Driving with a suspended license

Most surcharges remain on your policy for three years. An insurance company may also decide to cancel or end your policy before its renewal date. Some companies like Good to Go Insurance can help you get cheap Texas high-risk coverage. Apply online for a free quote and compare cheap side-by-side rates.

Canceling Your Texas State Low Cost Insurance Policy

If you have an auto-renewal policy, your insurance company may not decide to let you cancel it. If it has been in effect for over two months, they will not cancel it unless you can give one of the following reasons:

  • You did not pay your premiums.
  • You have a fraudulent claim.
  • Your driver’s license was revoked.

If you or the company cancels your Texas state low cost insurance policy, they will refund your unearned premiums. This amount will correspond to the money you paid in advance but was never used during coverage. It will go into effect the day after cancellation. 

Choosing Not to Renew a Policy

By law, insurance companies cannot refuse to renew your policy unless it has been in effect for over a year. If you have a 6-month policy, they must give you a full 12 months for it. Additionally, companies have to give notice at least 30 days in advance if they refuse to renew your policy.

Any insurance company in Texas cannot refuse your policy based on:

  • Weather-based claims
  • Damage from hitting animals
  • Towing and labor
  • Damage from gravel or falling objects
  • Other claims that are not your fault
  • No-fault accidents

If you do end up receiving a non-renewal notice, your best bet is to start searching for a new insurance policy right away. Suffering from a gap in auto insurance coverage can cause your premiums to go way up the next time you purchase insurance.

Shopping Around for Texas State Low Cost Insurance

It would be best if you shopped around for Texas state low cost insurance. Rates can vary quite a bit with each insurer, so you must get multiple quotes. Here are a few extra tips:

  • Decide what kind of coverage you want before you begin your search.
  • Get a higher deductible, which will lower your premiums.
  • Get at least ten different quotes across different companies for comparison.
  • Answer questions truthfully and give honest information about yourself.
  • Take advantage of available discounts.

Between comparing quotes and finding appropriate discounts, you can decide on a Texas state low cost insurance policy that works best for you without breaking the bank. Get a free quote and compare rates in about five minutes. Get the cheapest low cost Texas auto insurance you need and save more.