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Texas Auto Insurance
Texas operates as a tort state with regards to its insurance laws. In The Lone Star State, drivers must carry minimum liability coverage limits to cover personal injury costs and property damage expenses arising from at-fault accidents. In Texas, as in any tort state, blame is placed on one or more drivers who are proven to be negligent when an accident occurs. The victim or victims can then be compensated from the negligible party's liability insurance policy.
If the damages exceed the amount of coverage held by the at-fault party, the victim may then sue them for additional sums of money. This is a very important fact to take note of when determing how much auto insurance to purchase, as a serious accident can prove to be financially devastating for those who don't carry enough coverage.
Texas Auto Insurance Coverage
Although not required by Texas auto insurance laws, uninsured and underinsured motorist protection coverage can safeguard against the large number of motorists who drive without insurance. These typically come in two forms: uninsured motorist bodily injury protection for physical injuries caused in an accident and uninsured motorist property damage coverage for property damage.
Texas auto insurance providers also offer collision and comprehensive coverage options. Although these types of insurance are not requirements for operating a vehicle, they can be valuable tools to help protect your property in the event of an accident. Additionally, these coverage options are required for anyone who finances a vehicle or for those in a lease.
Finally, Texas drivers have multiple options for purchasing medical benefits coverage. These include payouts for wage loss, service loss, funeral expenses, and medical costs. These "first party" benefits assist in every accident—regardless of who is at fault.
How Rates are Determined
Texas auto insurance companies factor rates for coverage differently, but almost all of them use a similar set of formulas. First, they spread out the total cost of providing insurance to the state amongst all insured drivers. This includes such factors as:
- Total operating expenses
- Dollar amount of legal settlements resulting from lawsuits
- Statewide risk factors for traffic accidents
- Corporate tax rates
Once the statewide averages have been assigned to an individual's policy, the company will then add in an extra cost based upon the driver's assessed risk level. This risk level is based partly on factors which the driver cannot control, such as age, gender, and area where they live. However, there is also a large element of this calculation that is based upon the individual's behavior, such as their driving record, their credit score, and the type of car they drive. This is important to note, because Texas motorists can save considerably on their insurance by making good choices when it comes to these items.
Texas Auto Insurance Companies
Texas auto insurance shoppers have one of the largest selections of companies to choose from in the country. Rates and service may be very different depending on the carrier you select, so you should compare multiple car insurance companies side by side to get the combination of price and quality that is right for you.
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