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.

The Freeman Auto Report found that new car sales in the greater Austin area increased 10% in 2010 compared to 2009.  This is still far off pace from new car sales in 2007, when over 100,000 new cars were sold in Austin according to the article “Texas New Car Sales Increase in 2010″ on USInsuranceonline.com.

General Manager of Jaguar Land Rover Austin said in an interview with the Austin American-Statesman that this is a good sign and that 2011 will be a good year for everyone.  The economy is slowly picking up and this is definitely affecting new car sales as well as car insurance quotes in Texas.

The Texas Department of Insurance says the market has recently added 9 new providers which could make prices more competitive for Texas auto insurance rates.  This is just in time since minimum liability rates just increased causing overall premiums to increase.  With more providers in the market, hopefully they will compete for consumer business making rates stay flat or even decrease.

Texas is not the only state to feel the economy creep back through car sales and car insurance policies.  At this point there may be a light at the end of the tunnel for the economic slump that’s been keeping us down for the past few years.

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.

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.

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.

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.