They say that “everything is big in Texas.” Fortunately for Texas drivers, this isn’t necessarily case with insurance premiums. The amount of money Texas drivers pay for car insurance is pretty much in the middle of the pack when compared to the rest of the states in the union. That said finding cheap car insurance in Texas is a matter of knowing where to look and what it is you’re looking for. If you know exactly the type of coverage you need, what your budget is, and what you’re willing to pay per month, you can find a car insurance policy that is fairly affordable.

Cheap Car Insurance in Texas

Knowing What’s Required

Every state requires some sort of liability protection; be it in the form of an insurance policy from a licensed company or proof of self-insurance. In Texas, drivers are required to carry a minimum amount of liability insurance from a company licensed to do business in that state. The amount of coverage required by law as expressed in the following three-number format: 30/60/25.

Each of the three numbers represents tens of thousands of dollars. The first is a total of $30,000 to cover injuries you cause another person in an accident. $60,000 represents the total amount the insurance company will pay for injuries to multiple persons. The last number represents a total of $25,000 in coverage to pay for property damage you might cause. While these amounts may seem rather sizable, they actually are very small when you realize the cost of today’s medical care and the potential for very steep lawsuits.

Deciding on Higher Coverage Limits

If you don’t owe any money on your vehicle, finding cheap car insurance in Texas might mean settling for a policy which offers just the state minimums. But keep in mind that when you get this policy you are assuming a fairly big risk yourself. If you’re ever in an accident which is deemed to be your fault, and the total amount of damages exceeds the limits of your policy, you will be required by law to pay the remainder out of pocket.

If you do still owe money on your car you will be required by your bank to provide collision and comprehensive coverage as well. Both of these types of insurance cover the bank against loss if you should ever total your vehicle. Along the same lines is something known as gap insurance. Gap insurance pays the difference between what you owe on your loan and what your car insurance company will pay you in the event the car is totaled.

Looking at Payment Plans

Lastly, finding cheap car insurance in Texas sometimes means finding the right payment plan. As a general rule, the more you’re willing to pay up front the less your overall costs will be. But if your income is limited you might have to settle for a policy with quarterly or monthly installments. Keep in mind that all payment plans come with some measure of finance charges.

When the effort that goes into finding cheap auto insurance in considered, it makes sense to do everything possible to maintain the low rates found. Most drivers take the wealth of tips available on board when choosing their policy, resulting in many hours of research in order to find the right company.

Maintaining Cheap Auto Insurance in Texas

Keeping prices low can almost be a science in itself. Some things are out of the driver’s control, especially if they received a heavy discount exclusively reserved for new customers. However, there are numerous things that can be done to keep prices low in the future. Some are common sense, while others may require a little more effort.

• Keep an eye on named drivers. Many older drivers add other members of their family to their policy. This may be a partner, which can positively affect the price or could be a teenage family member who is adding a significant amount to the policy. If such a driver is no longer going to make use of the car or requires cover, then it makes sense to take them off the policy before renewing.
• Monitor the car’s value. Unless the insured party drives a classic car, they will find that the car loses value almost daily. A point will come where it can make sense to drop collision insurance because the additional cost outweighs what could be received from the insurer. In such cases, the increased risk of personal outlay can be negated by ongoing savings.
• Make quick decisions when making claims. If a claim needs to be made, it should be done so as quickly as possible while all of the details are fresh in the mind. However, quick thinking can also help the driver to decide whether making a claim is worthwhile. Many small claims fall within the deductible, and others may be worth paying for without involving the insurance company, particularly when no other parties are involved. More than three claims in a certain period can make a driver difficult to insure, with most companies considering them to be high risk.
• Drive safely. While it goes without saying, all drivers should always do their utmost to avoid incidents that could increase their premium. As well as claims, any driving offences count towards higher premiums. Again, some may be unavoidable but general care and attention is often enough to keep the driver in the same situation as they were when the policy was taken out.
• Continue to improve driving skills. There are numerous courses available that prove driving competence, and they are almost always viewed favorably by insurers. Should the worst happen, and a driving offence is added to a license, it can make sense to redress the balance somewhat through the addition of new qualifications.

Overall, cheap auto insurance can be hard to find. It can be even harder to maintain with prices constantly changing and everyday occurrences driving prices up. However, the effort put into finding the best quote can often pay off for longer than the duration of the original policy.

What You Need To Know About the SR-22

The SR-22 is one of those things many people have heard about but have little knowledge of. If that’s you, you’re in luck; because we’re going to explain all about it in this article. Suffice it to say that if you’re required to file an SR-22 you’ve probably gotten yourself in trouble with the law or your state motor vehicle department. The good news is that it will only be temporary as long as you correct whatever the issues are.

Simply put, an SR-22 is a document filed by your insurance company on your behalf, demonstrating that you have legitimate car insurance and the financial means to keep your policy in force. It is an instrument which essentially vouches for you to say that you’re driving with an insurance policy recognized in your state. If you’ve been required to file an SR-22, and you fail to do so, you are putting your license and registration in jeopardy. You could also be facing stiff fines and points added to your license if you’re caught.

Reasons for Requiring an SR-22

By far, the most common reason an individual is required to file an SR-22 stems from car insurance policies that are routinely allowed to lapse. Needless to say, it is required in every state of the union to provide some sort of insurance coverage, whether that is through a licensed car insurance company or self-insurance. So individuals who choose to purchase their insurance through a licensed provider, and then routinely let it lapse for lack of payment, need to go the extra mile to prove to their state that they have legitimate insurance; thus the SR-22.

Other candidates for the SR-22 are individuals who have a history of DWI/DUI. Such individuals are automatically on the trustworthy list because of their behavior behind the wheel. Someone who’s been convicted of DWI/DUI will most likely need to file an SR-22 before his license and registration are returned to him. Likewise, individuals with excessive amounts of speeding tickets, accidents, and serious violations – like leaving the scene of an accident – are sometimes required by their state to file an SR-22.

Regulations Differ by State

What we’ve outlined above are general rules surrounding the SR-22. Keep in mind that the various states administer this certificate according to their own regulations. If you’re required in Texas to file an SR-22, how long you are required to keep it depends upon the reason you are forced to file it. If you move to another state, you may have to continue the SR-22 through its expiration if you’re new state requires it. Otherwise you might be able to drop it altogether.

If a court has required you to file an SR-22 you should notify your insurance company as soon as possible. They will fill out the paperwork submit it on your behalf. They’ll also let you know if there will be any changes to your policy as a result of the filing.

Comparison shopping is always a good idea no matter what you’re purchasing; it’s even good idea for car insurance. No two insurance companies are going to give you the exact same policy at the exact same price, so it’s in your best interests to compare several different companies before deciding on one. In order to effectively compare insurance companies however, there are some things you need to know.

Comparing Texas Car Insurance

First of all, the state of Texas requires all drivers to carry a minimum amount of coverage for bodily injury and property damage. Since every policy written in the state will have that minimum coverage, there will be little difference in what one company charges compared to another. The price differences come in to play only when you start talking about extra coverage items.

Collision and Fire & Theft

Collision and fire & theft coverage are two areas where rates differ sharply. These differences depend on several factors, including how your insurance company determines the value of your vehicle. For example, does a policy pay “cash value” or “replacement value”? This is an important distinction which you need to know before deciding on an insurance policy.

A cash value policy pays out an amount equal to what it would cost to replace the vehicle with a similar one, less depreciation. A good way to think of it is by considering the Kelly Blue Book value of a car. The Kelly Blue Book determines car values based on normal depreciation standards from one year to the next. Although the comparison is not totally accurate, it’s close enough to give you a good idea what cash value means to an insurance company.

Replacement value on the other hand, pays out exactly what it would cost to replace your car in the condition it was in when it was lost or damaged. That means if you’ve purchased customize parts, restored a vehicle to near factory condition, or increased its value through any sort of modifications, you’ll be covered for that amount under a replacement cost policy. This is the more attractive option for people with highly valuable vehicles.

Accidents and Violations

In the state of Texas accidents and violations are treated differently than in other states. So if you’re using a national insurance company like Progressive or Geico, you want to know how they treat accidents and violations. Some companies use a practice known as “stacking”, which mean violations and accidents are “stacked” one on top of another in the order they occur. As time passes, the ones at the bottom of the stack are forgiven and taken off your record, resulting in lower insurance rates.

Deductibles

The last thing you need to know when comparing Texas car insurance is the fact that deductibles play an important role in determining your monthly premiums. The higher deductible amount you choose the lower you pay per month. The opposite is also true.

Let’s face it, finding car insurance is not the most pleasant task in the world. But it’s also not rocket science. And since it’s required by law, we might as well learn how to get a policy that’s right for us and that we can afford. To that end, here are five simple steps you can use to find car insurance in Texas.

Texas Car Insurance

Before we get started you need to know the minimum requirements according to Texas law, represented in the following three numbers: 30/60/25. The first number represents (in thousands of dollars) how much the policy will pay an individual for bodily injury; the second number represents the total amount the policy will pay for bodily injury; the third number represents the maximum amount the policy will pay to cover property damage. In order to be legal in Texas you must carry at least this amount of coverage.

Step 1 – Assess Your Needs

Knowing the state minimums, will they be adequate for you? If you’re a relatively safe driver with many years behind the wheel and no accidents, you might be able to leave them alone. If you’re accident prone you might want to raise the minimums somewhat. From there move on to extra coverage such as collision, glass, fire and theft, and comprehensive. Whether or not you carry extra coverage is determined by how valuable your car is. Just keep in mind that collision will probably be required if you have a car loan.

Step 2 – Make Initial Contacts

The next step is to begin contacting both insurance companies and local agents to obtain quotes. The initial quotes you get will just be a starting point based on preliminary information. Understand that quoted prices are likely to go up at least slightly once the insurance company does all its calculations.

Step 3 – Create a Shortlist

With half a dozen estimates in hand create a shortlist of three, based on the initial quotes. You’d be wise to make at least one of those a national company and another one a state or regional company in Texas. Having both kinds gives you a little more leverage in negotiating.

Step 4 – Negotiate

Most people don’t realize that even car insurance is negotiable. The reason you obtained multiple quotes to begin with is so that you could compare, so don’t be afraid to use those quotes to negotiate the best possible price. If it’s the difference between losing your business and charging slightly less, many insurance companies prefer the latter.

Step 5 – Sign the Papers

Once you’ve chosen a policy all that’s left is to sign the papers. If collision is part of your coverage an agent may need to come take pictures of your vehicle. Just make sure you get valid Texas insurance ID cards you can carry in the vehicle when you drive. You’ll also need the cards to renew your Texas registration.