Texas requires all drivers to carry car insurance, and Austin drivers are no exception. However, the average cost of coverage in Austin is $1,200 - $1,300 per year, which is a rate that's higher than the statewide average of $930 per year. That's why most Austin drivers probably want to save as much as they can on their coverage. To do so, some might be tempted to only buy the state's minimum required policy limits. However, is this the best step for you?
Sure, it might be cheaper to buy the lowest amount of coverage you can to save on your rates. But, is cheaper always better? In the insurance world, that might be the wrong assumption. Most drivers can benefit from buying more coverage, and the good news is, most insurance agents know how to help you maximize your savings.
Texas Required Coverage
Every driver faces risks themselves, and poses risks to others, when they drive. This is why the State of Texas requires all registered drivers (yes, Austin drivers included) to carry auto liability insurance. The state's mandatory limits are:
- $30,000 bodily injury liability coverage per person
- $60,000 bodily injury liability coverage per accident
- $25,000 property damage liability coverage per accident
If you cause a wreck, and the accident is deemed your fault, then liability insurance can help you compensate third parties harmed as a result of the accident. So, your liability coverage might pay another driver you hit from behind for their injuries and vehicle repair costs.
However, this coverage alone won't cover damage to your own car in the event of an accident. Other coverage, such as collision insurance, is supposed to do that. But what if you don't have that coverage? You won't be able to pay for your vehicle's repairs if you don't have the money to do so out-of-pocket.
Increasing Your Coverage
Yes, carrying only the Texas 30/60/25 coverage might be the cheapest policy out there. However, it might not be the most financially-responsible investment.
Usually, you'll only pay a few more dollars per month if you add expanded coverage to your car insurance. Collision, comprehensive, uninsured/underinsured and medical payments coverage might all come in handy in the event you're in a wreck. What's more, it probably costs a lot less money to pay on premiums, rather than facing a collision repair bill that suddenly pops up.
The good news is, your Cheapest Auto Insurance agent can help you tap into various incentives that can help you save on your rates, even if you buy more coverage. Your agent can help you adjust your deductibles, compare policies and qualify for discounts — all of which might increase your savings potential. Don't hesitate to let them be your trusted guide in getting the right balance of coverage and affordability.