Swift Cover Car Insurance

In an increasing effort to help ensure that Texans have more protection while occupying the roadways, the Lone Star State has gradually raised the minimum requirements for the liability portion of a car insurance policy over the course of the past few years. While many may not like the idea of higher limits of coverage being required, since it will likely cause the price of current policies to increase, it can help motorists in the event that they cause a traffic accident which would have exceeded the previous state mandated requirements.

The first change in Texas’ coverage required went into effect on April 1, 2008 and mandated that any liability policy purchased or renewed following that date must consist of no less than $ 25,000 for bodily injury or death to one person, $ 50,000 for bodily injury or death to two or more people and $ 25,000 for property damage per accident. These limits were increased from the previous amounts of $ 20,000, $ 40,000 and $ 15,000, respectively. The newest change to the Texas car insurance laws will mandate that automobile policies purchased or renewed after January 1, 2011 must have a limit of $ 30,000 for bodily injury or death to one person and $ 60,000 for more than one person. However, there will be no change to mandated limit of property damage liability.

Possible Effects of New TX Required Insurance Limits

Although it may not seem to be much of an increase from the previously mandated auto insurance coverage, the fact of the matter is that more extensive protection will be needed, the more it will cost. While a small increase in liability limits may have a small affect, if any, on particular drivers, some motorists may see a more substantial rate hike. Policyholder who have clean driving histories are usually offered significantly lower premiums than those whose driver’s record shows a few mishaps. Therefore, raising coverage can have a minimum impact on their current premium, maybe only a few extra dollars per year. However, motorists that are considered a high risk and are already paying inflated rates for coverage may not be so fortunate and could experience a larger increase in premiums.

With the date of the new law taking effect being just around the corner, consumers may want to ensure that the best pricing will be obtained when it comes time to raise liability limits; this is true whether a motorist is considered a “good drive” or “high-risk”. Policyholders can simply call their current carrier and ask what their premium will be once the new law takes effect and gather a few quotes from other companies to see if a more affordable option may be available. An insured should keep in mind that it may not be worth it to switch insurers to save a few bucks and may be a hassle than having to cancel a policy and begin a new one, but individuals who see a sharp rate increase from their current provider may benefit from shopping around. The Texas Department of Insurance provides helpful information about the new changes, penalties for non-compliance and how to shop for coverage.

Source: http://www.onlineautoinsurance.com/texas/