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.