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UPDATED: Mar 13, 2020
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Living in Texas comes with its perks and its burdens. One of the biggest burdens you must deal with if you own a vehicle is being financially responsible.
Officials in the Lone Star State have drafted a Texas Financial Responsibility law that states that all drivers who have a driving privilege must be financially responsible enough to pay for the damages that they are negligent for.
While there are several ways a driver can prove their have the funds to pay for a loss, most drivers will purchase and maintain a Texas car insurance policy that pays for medical expenses and repair bills for them.
Buying insurance is the most popular choice because the average person does not have thousands of dollars to deposit with the Department of Transportation.
Others realize that it is better to pay for a lot of coverage than to put your money at risk of being spent if you ever do need to file a claim.
If this is the route you would like to go to meet financial responsibility requirements, it is best to find the most affordable policy possible.
If you are on a mission to find cheap car insurance quotes in Texas, you will need to do your homework first.
You cannot just expect to receive the best bargain from the first insurer that you contact.
Being a smart consumer of the insurance marketplace means that you are resourceful and that you compare coverage options and pricing.
Before you look for “cheap” insurance, you should understand what the consequences of buying coverage from the wrong provider are.
There are quality reputable insurers that offer coverage in the wonderful state of Texas.
Read on, and learn why it is important to do business with a trusted insurer, how to find trusted insurers, and how to compare rates as quickly and efficiently as possible in Texas. And always compare car insurance using our FREE quote tool above.
Why Cheap Insurance Is Not Always Good Insurance
There is a major difference between cheap insurance and value-priced insurance.
Many people confuse the two because consumers want to find the best pricing without really considering how the wrong low-priced plan can affect them. Texas car insurance is not like consumer goods that you can find in the state.
If you are buying a name brand television, you might do your homework to find the retailer that offers the model that you want at the cheapest price. This is because the product will have the same specs and features no matter what retailer you patronize.
If you are buying car insurance, you are not just going to find a company with the lowest price.
The features of the policy can differ from company to company, and some companies have much better reputations than others.
It is important that you remember that car insurance is a product, but it is also a service that you do not want to use.
For the months and years that you go without filing a claim, you want to be sure that the company stays in business and offers you the customer care that you deserve. This is why value-priced plans are much better than cheap ones.
Cheap Policies Can Put You At-Risk of Having Claims Issues
When you think of cheap insurance, you think of a plan that costs you not much more than buying a few coffees a month. Some can buy very basic coverage by skipping the convenience store for a few days, but this may not be the most practical way to approach insurance.
To understand why you should not automatically buy coverage from a company with very cheap rates, you need to learn how the marketplace works.
How are rates calculated in Texas?
Auto insurance companies set their rates by assigning weight to risk factors.
These factors might include age, gender, driving record, vehicle type, occupation, vehicle usage, annual mileage, prior insurance and driving experience.
When the company takes your information, they use this information to determine just how risky you are.
If the statistics show that you will likely file a claim in the near future, you will pay more than a person who is deemed to be low-risk.
The company will have their own unique formula that will assess risk and then assign rates based on the factors.
What happens when a company does not charge for risk?
Now that you have a basic understanding of how Texas rates are calculated, you can dive a bit deeper to understand why it can be dangerous to choose an insurer that charges you extremely low rates when each other company wants to charge you more.
Companies must collect premiums based on risk to cover projected claims.
It is not possible for companies that charge very cheap rates to high-risk drivers to stay in business in the long term based on how claims payments are made.
If you do business with a newer insurer that has no footing in the industry and that is claiming to offer the cheapest rates regardless of your driving history or risk factors, there is a good chance the provider will go out of business or disappear when it is time to pay claims.
This is because a company that does not assess risk properly or charge the right rates will never be financially stable in the long run. If you want your insurer to hold your hand when you need them, you should look past price first and then find a policy with value.
How Basic Policies Put You At-risk
Even if you buy insurance from a trusted insurer, you have to consider the type of coverage you are paying for when you get cheap Texas rate quotes. If you do not take the time to review the quote, you may not even be aware that you are purchasing the bare minimum liability insurance requirements.
Minimum insurance requirements will help you comply with the with law, but they do not really provide you with much protection if you are in a serious accident.
If the damages exceed your limits, you can be taken to court where you will be ordered to pay.
Questions to Ask Yourself About Your Cheap Quote
Not only are low liability limits dangerous, rejecting optional coverage can be as well. Do you need coverage to protect your own vehicle? Is your vehicle leased or financed? Will you need money for medical treatment if you are in an at-fault accident?
Will you be able to cover the cost of a rental replacement by yourself? What will happen if someone hits you with no insurance? These are all questions you need to consider when you are selecting supplemental coverage options.
How to Find the Most Affordable Texas Car Insurance Quotes
Now that you understand that there is a difference between cheap and affordable, it is time to start shopping. There are plenty of ways that consumers can get quotes for auto insurance in the state. You can pick up the phone and call an agent. Dial a 1-800 number and call a call center.
Take a drive to a local agent’s office. Visit a brokerage and pay a fee for multiple quotes. Visit the website of an official insurer. Visit a broker-style website and get quotes from multiple companies.
How you choose to compare rates depends on your preference and also on how important your time is.
A majority of Texans who live busy lives prefer to get quotes in the most convenient manner possible. If you fall into this category, the best way to find affordable insurance from a leading insurer is to use an online rate comparison tool that is affiliated with several companies.
By doing this, you can see which companies charge fair rates to people in your risk group but you do not have to provide all of your personal information multiple times or speak to multiple people.
What information do you need?
Getting quotes quickly is possible if you have all of the information that you need on hand. Here is some of the information that the quoting system will ask for:
- Name, date of birth, license number of all drivers
- Vehicle information and features
- Accident and driver history (dates of violations)
- Coverage limits
- Annual mileage
- Vehicle usage
- Garaging address
- Finance information
- Student information for young drivers
- Prior insurance information
Finding cheap car insurance quotes in Texas is not difficult if you use the Internet to your advantage. As long as you know that not all cheap insurance quotes are good insurance quotes then you can start to look for a value.
Be sure to research potential Texas providers before you trust that they will fight for you and protect you. After you find financially stable companies without complaint histories, you can start to see how their rates compare to others in the marketplace.
Use our FREE quote tool below to start comparing car insurance instantly!