This is good for people that live in the state because after 5 years of continuous rising rates there was a break in the rise of insurance rates in 2012. Texas is only one in a few states that have seen costs of automobile insurance slow down, however this doesn't mean that the costs have gone down significantly. Figures in the year 2007 show that the average Texan paid on average $932 in insurance premiums.
In order to understand the reasons behind the automobile insurance rates and to learn how to find the cheap automobile insurance policy that everyone wants; is important to understand the state's minimum requirements for car insurance. These Texas minimum auto insurance requirements are in place so that people have at least some automobile insurance at the time of driving, to prevent legal issues that might arise after an unexpected accident. Texas has a tort system, meaning that a party can be found at fault after an automobile accident. For this reason the state mandates that any person behind the wheel of a motor vehicle has a 20/40/15 coverage. This means that they should have $20,000 of Bodily Injury per person, up to a total of $40,000
Bodily Injury per accident and $15,000 Property Damage Liability. Texas does not require a person to have Personal Injury Protection (PIP) coverage, however insured people should have it because it might prevent some of the costs associated with your own injuries after an accident. People that drive relatively old automobiles (5 years old or older) and want cheap automobile insurance an option would be to just take the Property Damage,
Bodily Injury and Personal Injury part of the coverage. If you do this, then the comprehensive vehicle coverage and the collision coverage will not be present in your policy and your rates will be lower. It is important to highlight however, that if you want to be reimbursed for your vehicle after an accident you must have both of those coverage options.
Also, people that are leasing an automobile or that are still making payments on a car are required by law to have both of those coverages in order for them to be reimbursed after an accident. Another way in which a person in the state of Texas can save some money when it comes to automobile insurance, is to have a high deductible on their policy. The higher the deductible the lower your yearly rates will be. This is because you will have higher out of pocket costs at the time of an accident (when you use the services).
People that want better coverage will have then a lower deductible, meaning that they will have to pay more because their risk is being covered by the company. Even though the car insurance rates in the state of Texas are going down, it doesn't mean that you cannot save some more money on car insurance.
If you do all of the things mentioned above, you will more than likely be successful at finding a good policy that has an excellent price and great service. Ask an agent for discounts offered in the state, because that too can save you money. Whether your car has safety features such as an alarm, air bags or anti-lock brakes, or if you are a good student you can qualify for specific discounts and save money. Also ask for a discount if you have an excellent driving record.