OAI Quantifies the Cost of Raising Texas Auto Insurance Limits

Share Article

The site looked at insurer-provided data and found that the cost of increasing policy minimums could be relatively low—around 6 percent extra—for the average driver.

An analysis of 144 quotes conducted by OnlineAutoInsurance.com has revealed that, while many objected to raising Texas’ car insurance minimums in 2011 due to cost concerns, the added cost of raising premiums even beyond the new limits can actually be relatively low.

The site looked at sample auto insurance quotes in Texas for a single male motorist who lives in Austin and drives a 2007 Ford F150 to and from work. The analysis included quotes for when the driver had a clean record and when he had one at-fault accident on record. The rates were approximate, as the age range used for the quotes was very wide—between 25 and 65 years old.

The site retrieved quotes for three liability coverage scenarios: $85,000 total (the state minimum), $150,000 total and $400,000 total.* The following are some of the most significant findings:

  •     Increasing policy limits from $85,000 to $150,000 resulted in an average premium increase of only 5.9 percent.
  •     Increasing policy limits from $85,000 to $400,000 resulted in an average premium increase of only 18 percent.
  •     The average percent increase was about the same whether the driver had a clean record or one at-fault accident on record. However, the driver with the one at-fault accident was charged a base rate for coverage that was, on average, about 28 percent higher.

The quotes used in the analysis were retrieved using the Texas Department of Insurance’s HelpInsure tool.

Source: https://apps.tdi.state.tx.us/helpinspublic/Start.do?type=auto

Motorists in Texas are currently required to carry liability coverage that will provide at least $60,000 worth of protection for injuries caused by the policyholder and at least $25,000 for property damage that he or she causes.

While that may sound like a lot of money, it’s not inconceivable that damages could exceed those limits in a serious accident involving multiple vehicles. And if damages do exceed a driver’s policy limits, he or she may have to pay for the remaining costs out of pocket.

In order to see how much it would cost to get expanded protection, Texans may want to get quoted for coverage at different liability limits. As the premium analysis shows, the average driver could get tens of thousands of dollars’ worth of extra coverage for only a couple extra dollars a year.

To learn more about this and other car insurance issues, you can go to http://www.onlineautoinsurance.com/texas/ to find informative resource pages and an easy-to-use quote-comparison generator that can help track down the best rates quickly.

*These coverages are broken down as 30/60/25, 50/100/50 and 100/300/100, respectively.

# # #

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Benjamin Zitney
Visit website