Smart Auto Insurance Blog

Texas auto insurance quotes and rates are expected to increase over the next few weeks due to a recent regulation change.  There was recently a mandatory minimum liability coverage requirement increase according to the article found on Digital Journal detailing the new regulation.

The Texas Department of Insurance states that liability coverage was much too low and an increase was necessary.  The coverages were barely covering the cost of accidents and this was hurting other drivers involved.  Department of Insurance spokesperson, Jerry Hagins, believes Texas drivers can expect to see an approximate increase of 2%-3% in their current rate.  Charles Law, a local auto insurance agent, estimates this to be around $40 per year on average across the board.  This is a small increase for most people, but it gives us some foreshadowing of where the rates are headed.

Apparently, this minimum liability coverage increase was long overdue.  There hadn’t been an adjustment since 1983 which is simply shocking since medical costs and auto repair costs have skyrocketed since then.  The new rate increase was called for in 2007 law, but it did not take effect until January 2011 and by now consumers are seeing the difference on their statements.  As much as no one wants to pay more for their auto insurance this is a necessary evil to ensure our coverage actually protects us in case we hurt someone or something out on the road.  If it’s too small of an amount we could end up paying out of pocket and no one wants that.

According to the article “New Year Brings New Insurance Requirements for Texas Drivers” by Spencer Lubitz on KRISTV.com, car insurance quotes are increasing in 2011 in the state of Texas.  Bodily injury and property damage limits are increasing minimum requirements according to Michael Morgan, an agent with State Farm Auto Insurance.

Under Texas’s current minimum liability limits each policy must cover at least $25,000 worth of damages for each individual injured in an accident, $50,000 for everyone hurt in the accident, and $25,000 for property damage for each accident.  After January 1st, 2011, each policy will need to cover $30,000, $60,000 and $25,000 respectively.  The change will only affect policies which currently carry the minimum requirement.  This equates to approximately 50% of Texas drivers.

It’s hard to say exactly how much policyholders will have to pay extra, but any increase in cost is not welcome.  Factors will include car type, age of the driver, and the individual’s driving record.  Although increases aren’t expected to be drastic, insurers recognize in these times every dollar counts with customers and they will be doing their best to ensure competitive prices remain for policyholders.

Auto insurance premiums for high risk drivers through the Texas Automobile Insurance Plan Association (TIAPA) will drop by about 7.6% starting January 1, 2011.  This is according to the article “Rates for High Risk Drivers in Texas Falling; Coverage Minimums to Rise” posted on InsuranceJournal.com.

Texas Insurance Commissioner, Mike Geeslin, has ordered overall auto insurance rates to drop for TIAPA personal auto insurance policies in the state.  In addition to this, the minimum amounts of motor vehicle liability insurance required by law to establish financial responsibility in Texas will increase starting January 1st.

This is important news for Texas auto insurance carriers as they shop around for coverage.  Knowing what coverage is required is important to ensure protection is adequate in case of an accident.  According to OnlineAutoInsurance.com, TIAPA saw a 2.2% increase from 2009 to 2010 in auto insurance rates and with many consumers struggling financially, Texans want to see this trend stop.

According to the press release “Expect to See Increase in Auto Insurance Rates” found on emailwire.com, Texas auto insurance quotes will be seeing an increase in the near future.  States such as Texas and Maryland are raising minimum coverage requirements and there are more states expected to follow.

This increase in minimum coverage requirements increases the chance of higher premiums.  This is in addition to the increasing costs of health care coverage for those injured in car accidents, and higher premiums.  The cost of health care increasing is likely to affect drivers’ auto insurance policies over time, and consumers should be prepared.

Because of the potential for increased costs, it’s a good time to compare auto insurance.  It’s a good idea to get multiple quotes from numerous companies to ensure you receive a competitive price.  Another way to counteract the potential increases is to adjust deductibles and policy offerings.  In general, the higher the deductible, the lower the cost of a policy.  If you take the highest deductible you can afford you may see a dramatic change in your auto insurance rates.

Government research shows that both women and men have the same accident rates per million miles driven.  But men do have more accidents overall according to the press release from MileMeter on businesswire “Men vs Women: Who Pays Less for Auto Insurance”.  This is because men drive more miles than women on average.

Even though men drive more, many auto insurance companies such as Acceptance Insurance, are charging the same yearly premiums to adult men and women.  This means that women are paying more per mile driven than men.  Insurance discrimination occurs against all people whose cars are driven less than average.  The main way to end the group discrimination against women and other lower mileage groups and individuals is to charge by the mile, which more and more companies are turning to.

MileMeter is a company that specializes in per mile auto insurance.  This Texas based company is the first to apply per mile prices to the miles recorded on odometers.  This helps to ensure equal treatment towards men and women drivers.  They offer this benefit without installing vehicle tracking devices which many view as an invasion of privacy.  The miles are bought in advance, and more miles are purchased as needed to ensure full coverage.

Allstate Auto Insurance recently gathered data that showed an increase in Texas auto insurance claims for hit pedestrians during the week of Halloween.  This is according to the article “Texas Pedestrian Accidents Jump 23% During Halloween” by Kristen Beaman for Allstate found on reuters.com. 

Allstate looked at claims in Texas over the last 5 years and found a large jump in accidents around trick or treating.  Last year, Allstate claims more than doubled over the Halloween week compared with the rest of 2008.  Their data matches up with a report from the Insurance Institute for Highway Safety which showed that October 31 is the 2nd highest day of the year for pedestrian deaths.  The first is Fourth of July.  With Halloween falling on a weekend this year, there may be more people out than normal so it’s crucial that drivers are extra careful. 

The article offers some important tips to follow while out on the road, especially at night when pedestrians are out.  Never drink and drive.  A designated driver should always be assigned before heading out for the evening.  Texting while driving can be very dangerous so keep your phone in your pocket until you can pull over to text or make a call.  As a pedestrian, it’s a good idea to avoid texting while walking.  Anything that takes your eyes off the road can be very dangerous.  Not only will following these steps make you a safer driver but it may eventually lower your car insurance quotes.

The average auto insurance rate in Texas has decreased by more than 14% since the beginning of 2009 according to insurancerates.com.  This was found on the press release “Texas Auto Insurance Rates Decline 14.2 Percent in 2009″ on marketwire. 

This is good news for Texans as all Americans are trying to save money.  Texas auto insurance quotes are lower and by shopping around you can find competitive rates.  Some other statistics to keep in mind while shopping around are that men in Texas have an average auto insurance rate which is 7% higher than women according to the press release.  Drivers in Texas who are 19 years old or younger pay an average of 140% higher than drivers over the age of 75. 

The press release also points out that Texas is currently the 18th most expensive state for auto insurance so the decreasing rates are helpful.  Massachusetts auto insurance is the most affordable and Louisiana is the most expensive.  The best thing that you can do to ensure you are getting a good deal on your auto insurance is to shop around and compare rates.  You may be surprised how much money you end up saving.

According to the article “State auto insurance program plans to raise rates” by Purva Patel from the Houston Chronicle, Texas drivers covered through The Texas Automobile Insurance Plan Association will experience higher auto insurance quotes and premiums starting November 1. 

The insurer, often known as the last resort auto insurance company, assigns auto insurance coverage for those who cannot get insurance through private insurers in Texas.  They are also known as the “assigned auto insurance market”.  They issue policies which offer basic liability insurance required by Texas state law.  They also offer limited collision and personal injury protection.

The Association plans to increase auto insurance rates statewide by an average of 2.2%.  Jerry Johns, a spokesman for the company says the increases come because of the need to cover damaged vehicles and doctor and hospital fees.  They assigned 12,000 policies in ‘08 and plan on assigning 10,000 for the current year.

Texas auto insurance rates are on the rise.  According to the article “Auto Insurance Rates Jump 10% In Dallas-Fort Worth” by Terrence Stutz from DallasNews.com, Dallas drivers have seen rates jump by double digits in the last year.  Homeowners insurance has also increased, but only by about 5%.

The mandatory rate filing by the top 25 insurance companies in Texas showed that auto insurance rates for liability coverage jumped 10% in most areas of Dallas County.  In 6 Dallas County areas including North Dallas, South Dallas, Duncanville, Garland, Irving, and Richardson rates ranged from $556 to $574 for a married male driver with average credit and no violations, age 25-65. 

According to insurance industry experts, the higher rates are because of medical costs that have spiked during a slow economy, in additon to low inflation.  Consumer groups believe the increase is excessive and not justified.  In some cases, they believe the high rates resulted from poor returns on their investments.

According to the article “Auto Body Shop in Plano, Texas Provides Environmentally Safe Auto Paint Repair” found on emailwire.com, there is a company called Collision On Wheels in Texas which is a mobile auto repair shop which focuses on using green materials and efficient energy to fix autos. 

Collison on Wheels carries everything in their van needed to fix minor repairs in the owner’s driveway.  This lets them save on power in addition to the environmentally friendly products they use.  They typically finish work in one day and keep prices down.  In severe cases they will work with Texas auto insurance companies to cover the costs. 

Since Collision on Wheels does not have the typical expenses of other auto repair shops they can pass the savings onto their customers which is a much needed relief in today’s economy.