In 2008, the Lone Star State increased the minimum liability requirements and a new increase is set to come into effect by the beginning of the year; with premiums likely to increase with more extensive policies being required by motorists, proper management of automobile policies can help keep rates affordable.
Beginning January 1, 2011 the minimum liability requirements for Texas auto insurance policies will increase from $25,000 for bodily injury per person to $30,000 and $50,000 for bodily injury per accident to $60,000. Needless to say, a driver’s premiums are expected to increase with the necessity to obtain more coverage; by reviewing current policies, Texans may be able to reduce rates.
Many individuals purchase a policy and rarely take the time to take a look if the coverage initially obtained is still beneficial; although state law requires motorists to maintain liability protection for bodily injury and/or property damage, consumers often pay for unnecessary protection for far too long than needed. One such coverage option is comprehensive and collision; according to the Texas Department of Insurance, “you can consider dropping your collision and comprehensive coverage if your car is older, paid for, and of relatively low value.”
Source: http://www.tdi.state.tx.us/pubs/consumer/cb060.html
Individuals who do need comprehensive and collision to cover automobiles for physical damage may be able to reduce premiums by switching to a higher deductible; generally the higher the deductible the lower the premium, but before a consumer chooses to do so they should be aware that the amount chosen would need to be paid in the event of a claim. Opting for a deductible that cannot be paid following a loss would probably not be beneficial.
Texans have many ways to reduce their rates, for more information residents can visit http://www.onlineautoinsurance.com/texas/ for additional tips on finding cheaper insurance in Texas.
