Why do we need Auto Insurance?
Auto insurance is the financial support you receive when your vehicle meets any mishap or collision. A car auto insurance policy gets you the lump-sum amount for fixing the damage or for replacing a new car. It also pays money towards medical expenses in case of bodily injury. Besides, you are also required to insure your vehicle as per the state laws.

Driving in Texas
With the increase of 28% accidents across Texas, the rates driving trends can be easily sensed. There have been consistent cases of road mishaps and collisions causing huge injuries in the recent time. As per the estimates, the cases of on-road fatalities increased from 4572 cases to 5870 in 2008. Besides, drunk and drugged driving cases have also been reported. These pose a huge threat to the vehicle and the driver as well. Teen drivers need to have valid Graduated Driver License. The applicant must be 15 years of age when applying for GDL.
Factors which effect auto insurance in Texas
Purchasing an auto insurance policy depends upon several factors. These factors are taken into consideration by the insurance company while allocating an insurance policy to the applicant. It is noteworthy to consider as to why different companies offer the insurance policy at different rates to the same auto driver. It is after considering various aspects that you are placed in the designated “Risk-Pool” which specifies as to how easily it would be for making claims.
Generally the level of risk plays a vital role in determining the rates of insurance. Some of the other factors which affect auto insurance in Texas have been explained herein;
Driving History:
The premium rate is reduced considerably if the auto driver has maintained a consistent clean record. However, if you have been ever involved in any accidental or mishap cases it may drastically put you into the “High-Risk” zone where you would be required to pay a larger premium.
Type of Vehicle You Have Purchased
If you have gone in for a highly expensive vehicle, you need to dole out greater amount towards paying insurance premium. Apart from that, if your car runs at faster speed than any other brands then too you would be required to cough up more. If the car is capable to perform dangerous actions it is more likely to be involved in an accident.
Area of Stay:
If you have been staying in the area where car thefts are a common occurrence then it may raise interest rates significantly. Similarly if you are an inhabitant of a highly populated area, your insurance rates may go up drastically as you are more likely to meet an accident.
Age is also one of the most vital factors which determines insurance policy premium. Teenage drivers are generally considered to be highly vulnerable to the accidental cases and they are put in high risk slabs. Under-25 drivers generally pay more insurance than their older age counterparts. Young drivers have been found to be involved in greater number of cases.
Women are considered to be safer than their male drivers. They are less aggressive while driving a vehicle on road. That is why women can get auto insurance policy at a lower cost as compared to that of their male counterparts. It is due to lack of wider driving experience and less knowledge of roads that they are likely to get involved in more accidental cases.
Safety Features
If you have safety features in your vehicle like anti-theft devices, occupancy siren etc. your insurance premium rate may be cut down to the certain extent. Besides, age of the model also determines rate of insurance.

Companies which offer auto insurance in Texas
If you have living in the amenable state of Texas you would be certainly welcomed by a number of award winning top rated insurance companies. They offer a wide range of customized insurance products which are in tandem with your expectations and in compliance with various state laws. From the oldest to the largest, there are insurance companies of every type offering you customized insurance policies. Some of these companies are listed herein;
Travelers: This is the reputed company offering cheap auto insurance in texas to the car-owners. You can avail up to 15% discount on insurance premium.
Geico: It is the most sought after insurance company. You can get free quotations instantly using online facilities.
Besides these, some other companies offering auto insurance in the stats of Texas include the following companies:
• State Farm
• Texas Farmers Insurance-Company
• United Services Automobile-Association
• USAA Texas Company
• All State Insurance
• 21st Century
• Nationwide
• Amica Lloyd’s
• Texas-Fair Plan-Association
• Property and Casualty Insurance-Company
• Universal North Insurance Company
With its auto insurance market share of 29%, State Farm Insurance Company enjoys deeper trust. State Farm is the largest auto insurance company.
While each insurance company may have its own distinct features but all of them have some common features. You could avail
• Online Policies
• Faster Claim Process
• Free Online Quotes
• Flexible Payment options
• Attractive Discounts
• 24×7 Customer Care Services
• Free Insurance advice
Criteria/Minimum Requirements for getting auto insurance in Texas
There are many parameters you can judge a policy on. Analyzing the lump-sum amount is the foremost pre-requisite. Another important fact is that what amount you are required to pay. Further you also need to furnish certain documents for getting cheap car insurance in texas like
• Address and Identity documents
• Certificate of your Health
• Documents regarding Car ownership
• Permission of driving from State Transport Department
• Valid Driving License
Average Premium for auto insurance in Texas
The figures of Average premium in the state of Texas are released by the National-Association-of-Insurance-Commissioners (NAIC in short). As per the estimates for the current year, the average cost of insurance is pegged at $1479.13 for car insurance policy.
Laws related to auto insurance in Texas
There are many state laws governing auto insurance premium in Texas. As per these regulations you are required to have an insurance cover of $30000 for a single person, $60000 for two persons (for one accident) towards body related injuries. This limit of insurance is $25000 for damages to another individual, say passerby. This system is referred to as 30/60/25 insurance system.
Texas Distracted Drivers Laws
It is the law which is related to the regulation of cell phones or texting laws. Under the Texas-House-Bill 2730, the drivers under the age of 18 years are prohibited from operating any motor vehicle.
Texas Teen Drivers Laws
Under Teen Laws the teenage driver must have GDL that is Graduated-Driving-Licensing for operating a motor vehicle. However for getting this license, the applicant should have attained the age of 15 years.
As per the State Laws, it is the liability of the driver who has caused the accident to pay for the damages which have occurred to another individual.
How to Reduce auto insurance in Texas
There are many factors which determine the rates of insurance premium. These include factors like age, gender, security devices, brand, age of the vehicle etc.
• If you commit to the insurance company that you will be driving the vehicle when needed and avoid unnecessary driving, you can avail a certain percentage of discounts.
• If you have anti-theft devices in your vehicle you can get relaxation of up to 15% on your premium payment.
• Cleaner past driving record also entitles you for getting attractive discounts on the auto insurance premium.
• If you do not have any driving history you can enhance chances of reduced risk by producing a successful credit record.
• Multiple Insurance Policies: Multiple insurance policies from the same company can also fetch you attractive discounts on further new policy.
• Higher Deductibles: You can avail good discounts when you choose to pay from your pocket during any accident.
How to get auto insurance in Texas online
Choosing among a large number of insurance policies being offered by various auto insurance can be a complex task. Visiting the office of each individual company requires a long time and it may take a few days to weeks. Each of the insurance company has its own website. Therefore you can get quotes for various insurance policies using online platform. Here you get an excellent opportunity to compare various policies on different parameters. Besides, you can apply for the insurance policy by filling designated application forms. As soon as you submit your form, a financial planner at the company carries out further proceedings for allocating a policy to your vehicle.
Penalty for not paying auto insurance in Texas
Getting the vehicle insured with sufficient financial liability is mandatory by different state laws. Non-compliance to these laws leads you to be debarred from operating your vehicle on the Texas Roads. If you don’t pay your premium on time, you may be penalized by imposing a fine up to $350. Still, if you do not pay the required taxes on time, your license may be suspended and in certain specific cases it may also lead to impoundment of your vehicle. The authorities keep a close watch on insurance payments through a software known as TexasSure.
Main cities where most people opt for auto insurance in Texas
Auto insurance policies can be availed across all cities in the state of Texas. Multinational companies often set up their representative offices in major cities. Some of the cities where you can easily get auto insurance policy easily include;
• Houston
• Dallas
• San Antonio
• Austin
• Abilene
• Amarillo
• Port Arthur
• Corpus Christi
• Harlingen
• Irving
• Fort Hood
• Laredo
You can compare quotes for various cities irrespective of the fact that which city you have been residing in. You just need to enter the zip code of your area and find the suitable choice for your vehicle. However, if you don’t find the office of any auto insurance company you can call for an insurance advisor at your doorstep.
Frequently Asked Questions Regarding auto insurance in Texas
When you go in for shopping for the best auto insurance, a number of questions pop-up in your mind. Some commonly asked questions have been answered here:
Why should one have auto insurance?
Well, first it is a financial liability by the state laws. Second, you get financial support when your vehicle is damaged.
What is covered in a standard insurance policy?
Damage of vehicle due to mishaps, collisions, personal injuries, injuries to another person is covered. Besides, loss of vehicle due to theft, hell or any unforeseen injuries fire etc. is also covered in several cases.
What if the auto insurance policy is not availed?
You are not allowed to take your vehicle on the streets without appropriate insurance cover. Non-adherence to the state laws may lead to suspension of driving license and in certain rare cases your vehicle may be seized.
How can one choose the best auto insurance policy?
Well this is one of the most complex questions indeed. But it is good to ask. Comparison of various policies will make it clear which policy is available at the cheapest cost.
If the car has been given to a friend he is covered under the policy or not?
Yes, if you have given you car for driving to the friend, your friend is covered under the auto insurance policy.
Texas Department of Insurance
All of the auto insurance related guidelines, rules and orders are passed by the Texas Department of Insurance. It issues ordinances and notifications frequently for regulating various insurance companies and policies. They frame the rules in fostering the harmonious relations between the customers and the company so that interests of both the stakeholders are secured. It also forces for easier claim settlements in case of accidents or damages of vehicles.
The department publishes a wide range of research reports based on the insurance trends prevailing in the state. The findings of these reports are helpful for both consumers as well as companies. They help the companies to design the appropriate polices and customers benefit in choosing the best deal for their vehicle.
TDI: How it can help you
You can approach to the Texas-Department-of-Insurance in case your company has provided you with misleading information or it has not paid you what it promised. You can mail, e-mail, fax or send your complaint through registered post.
You can rate guides or Price comparison notes from TDI which makes it easier for you to compare rates of various policies.
The department has set up separate consumer helplines for the consumers. It is open on each working day from 8.00 AM to 5.00 PM. You can report any fraud, cheating or any such other matter.
News Highlights

Texas Auto Insurance Limit Raised:
Under-Texas-Financial-Responsibility Law, the minimum liability insurance of vehicle has been raised up to $30000, $60000 and $25000 for one, two and property damages respectively. This is the 30-60-25 rule.
Tips on Saving $100 in Just One Hour
• Buy insurance only from licensed company
• Compare quotes from several companies
• Choose only the coverage you need
• Opt for higher deductibles
• Avail benefits of TAIPA Take-Out Plan
News Related To Auto Insurance in Texas
Schedule of Enforcement Actions Announced (March 23rd)
TDI has recently announced its enforcement actions. Its copies can be obtained from the Public Information office.
Division of Workers’-Compensation Announced (March 28th)
The division has recently the course of disciplinary action taken. Some of the violations under which the actions are taken include that of failure to pay medical bills, failure of timely payment of income bills etc. The copies of the same can also be obtained from the Public-Information-Department of TDI.

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