With the New Year just around the corner and many Texans more occupied with holiday shopping and getting ready to raise a glass and toast the upcoming year and the things to come, not many have auto insurance on their minds. Texas’ motorists should be aware that beginning January 1, 2011, not only will there be a reason to celebrate the aspirations of a prosperous year to come, but there will also be an increase in the minimum liability coverage requirements in the Lone Star State. As most set to New Year’s resolutions, many include saving money as a common resolution and keeping automobile policies affordable may be a place to start.
Motorists who may not necessarily feel the effect of the new legal requirements are those who have already purchased limits above and beyond what is currently required, however; a large number of TX drivers currently contain the minimum coverage allowed by the state and the bump to higher limits may see rates increase as more extensive policies will need to be obtained. The most effective way to make sure that cheap liability car insurance in Texas is obtained is by preparing for the rate increase that is likely to come with the new year, and although many may be more concerned with the hectic holiday season, one should not wait until an unexpected premium hike is experienced in the near future.
Being prepared for the upcoming changes in Texas auto insurance law is one of the best methods of preparing for a rate increase and even keeping the cost of coverage as close to the current premium being paid as possible. Any policy issued or renewed after January 1, 2011 will have to contain minimum liability limits of $30,000 for bodily injury per person, $60,000 for bodily injury to two or more people and $25,000 for property damage; this is commonly seen in an abbreviation of 30/60/25. This is an increase from the previous requirements of $25,000 and $50,000 for bodily injury, but the $25,000 in property damage will continue to remain the same.
While the increased requirements may not seem to be much, only consisting of $10,000 more, it may impact rates; with more coverage generally comes higher premiums, especially for higher risk drivers. With this in mind, whether a motorist with a flawless driving record or some mishaps, it may be a good idea to see what a policy will cost with these new required limits. Motorists that are currently insured may want to see what their current company may be increasing premiums to and compare quotes of other insurers to see if a more affordable option is available. Depending on the policyholder, the number and types of drivers and vehicle, a premium can be raised a few dollars or a few hundred. It may be a good idea to find out beforehand and not when a renewal notice is received; this can help avoid surprises and also help keep policies as inexpensive as possible. Residents may also want to visit the Texas Department of Insurance website to get a full understanding of the state’s new financial responsibility laws.