Because Texas law requires all drivers to carry minimum of 25/50/25 coverage liability coverage, many people on tight budgets assume that the cheapest option required by law is the best route to go. It is understandable for them to do so. Today's society requires all of us to seek the most cost effective solutions in every point of lifestyle. Your Texas auto insurance agency should understand this and seek to provide you with the most affordable coverage that will truly protect our clients in event of an accident.
Cheap auto insurance in Texas is only cheap if it prevents additional expenses in medical claims and vehicle damages that can far exceed the total value of a policy, and possibly result in legal action against the insured. A bit more examination reveals that no matter how tight your budget, cheap auto insurance in Texas can fully protect you at only a fraction more of the cost than the bare minimum requirements of state law.
The State Legislature in Austin, Texas requires all drivers to carry car insurance that will pay upon claim $25,000 bodily injury per person, $50,000 bodily injury for all victims of the accident, and $125,000 for property damage. This level of Texas auto insurance coverage is cheap for a reason. It only covers medical costs for the victims of an accident in the other vehicle; and medical costs for injuries most often go far beyond these amounts.
In such an event, you may be held responsible for these in a civil suit. The bills that may accrue from a judgment in such a suit will be anything but cheap!
Consider as well that many high performance automobiles, SUV's, Trucks, and sports cars on the road are often worth much more than $25,000. This seldom covers the full costs of repairs on these vehicles.
However, this is only one side of the coin.
If you purchase the Texas minimum liability alone only because you have to, and you decide to go with the cheapest auto insurance you can find, what happens when you get into an accident that is not your fault and the other driver has no insurance at all? What if your loved ones are in the car with you? As previously noted, the cheapest car insurance in Texas covers only the driver and passengers of another car--not your own.
This could result in you and your family or friends all going to the hospital together without any means of covering the costs.
An agency like TAHI, or Texas Auto Home can offer you a better solution through any number of superior policies that is almost as cheap as the minimum car insurance required by Austin. Your agent can take the time to show you how to obtain affordable, much more substantial coverage options that will fully cover expenses should an accident occur.
Additional coverages such as Personal Injury Protection (PIP) or Uninsured/Underinsured Motorist Protection (UIM) can often be added to your policy at little additional cost per month. These types of coverages will give you peace of mind that you or your family members will be protected should an accident occur.
If you are still making payments on your car, and the title is held by a leinholder, you are most likely going to need to purchase full coverage. Cheap Texas auto insurance may be available on every television channel and every strip center on your block, but you better make certain that the quote you are getting addresses all of your needs--an will stand by you as well if you ever file a claim.
It helps as well to work with a statewide, multi-line insurance provider such as Texas Auto Home Insurance who will make every effort to individually rate the person, family, or commercial entity seeking cheap car insurance. By looking at individual factors, your personal agent can look for ways to apply discounts to full coverage policies that fully indemnify the insured against all perils and potential mitigating factors much better than the bare bones, cheap Texas auto insurance that the law mandates for everyone to carry.
It is all a matter of short-term investment versus long term gain that protects against catastrophic loss.
