Lewisville Car Insurance
Buying car insurance can be a daunting but necessary task due to the fact that car insurance is required in the state of Texas.
As a resident of Lewisville and an insurance consumer, knowing the auto insurance product and state requirements is essential so that the process is not as stressful and daunting as it would be if you were uninformed.
If you are not a licensed insurance agent and you have little experience with Lewisville car insurance, this consumer guide can help you learn what you need to know to purchase a policy with appropriate coverage from a reputable insurer that you can trust.
Read on, and learn about coverage requirements, the Texas insurance industry, and how to find the best auto insurance plan at a price that you can afford.
What does Texas law require?
All drivers in Lewisville are required to comply with all Texas laws. One of the civil laws that are must comply with is the financial responsibility law.
In general terms, this law states that any driver who has a vehicle that is registered and owned by a resident of the state of Texas must be able to pay for damages that they cause in an accident.
Because driving is a privilege and not a right, failure to comply with the state-mandated insurance laws could result in license suspension or revocation.
If you live in Lewisville, you are required to purchase and then continuously carry motor liability insurance so that state officials know that you can at least afford to pay for a minimum amount of damages if you are at fault in an accident.
Liability coverage will pay for third-party medical expenses and the cost to repair someone else's property. It in no way is designed to provide you with any type of monetary compensation to cover your own damages whether they are to you physically or to your property.
It in no way is designed to provide you with any type of monetary compensation to cover your own damages whether they are to you physically or to your property.
Liability Coverage Requirements
Liability consists of two different coverage components: Bodily Injury and Property Damage.
Bodily Injury Liability, often labeled as BI cover on a policy declarations page, will pay for medical expenses that someone else incurs when you are deemed primarily at fault for a motor vehicle accident.
Property Damage Liability, which is typically labeled PD, will pay to replace or possibly repair a car or other tangible property that you do not own but that you did damage.
Liability coverage will cover you, your household members, your family members and permissive users.
If a listed driver borrows a non-owned vehicle, liability will transfer temporarily to that vehicle so that you have coverage when renting or using a friend's car. In Lewisville, you can have no less than:
- Bodily Injury - $30,000 per injured person, up to a total of $60,000 per motor accident
- Property Damage - $25,000 per accident for damaged property
Many quotes or policies will have these limits written as 30/60/25.
How much insurance do you need to carry in Lewisville?
Carrying the liability coverage requirements does not mean that you will be able to cover all of the damages that you are negligent for if you are in an at-fault accident. It is a dangerous myth and expensive mistake to believe that you only need minimum insurance limits that are required by law.
In the event that you do cause an accident and that the damages exceed the limits on your policy, there is a chance that you could face a lawsuit where your assets and wages could be targeted.
This is why a majority of licensed Texas insurance agents will recommend that all drivers, regardless of the net worth, carry a minimum of $100,000/$300,000/$100,000 in motor liability cover.
Contrary to popular belief, raising the limits from state minimums will not cost a fortune because most insurers offer rating bracket discounts for policyholders who choose to protect themselves with more liability cover.
If you are not sure how much coverage you should purchase, price the cost of higher liability limits and options type of cover that you have a need for and make an educated choice based on not just price but also need.
Are there additional forms of protection to pay you?
Insurance does not only pay a third party. If you carry a more comprehensive plan, you can receive payments for your own losses from your insurer. To get the added protection, you must buy the optional coverage types for an added premium.
Some of the optional coverage types that should be on your list to price include:
- Medical Payments - Pays you and your passengers for immediate medical expenses if you are injured in an accident no matter who is found at fault.
- Uninsured Motorist (UM) - Optional coverage that will act like Bodily Injury if someone who has no BI hits you. It also covers if the party does not have enough liability cover to pay for all of your medical expenses. Considering the fact that the rate of drivers in Texas without insurance is 13.3 percent, it is in your interest to buy UM.
- Comprehensive & Collision - Both forms of physical damage cover that will pay for damages to your own vehicle listed on the policy. Collision pays for damages in an accident, and comprehensive pays for other than collision losses.
- Rental Car - You do not automatically get a rental car if you are in an accident and your car is in the shop. To avoid being stuck with the expense, you can purchase rental car and you will be reimbursed for daily rental rates.
Understanding the Texas Insurance Industry and Why to Shop Around
If you want to find the most competitive premiums, you will need to understand how the insurance industry works. In the state of Texas, all insurers that have active licensure to sell motor vehicle insurance to consumers must answer to the Texas Department of Insurance.
This regulatory body, which operates under the National Association of Insurance Commissioners, will review all rate filings and approve or deny them. Rates must be approved before they are charged to consumers to prevent predatory practices.
While rates are regulated, the company has the right to decide what type of rate class that they want to target.
To target a specific niche, the company will price themselves the best in that demographic and then offer less than appealing rates to other rating classes.
One company might prefer to do business with experienced drivers with clean records, and another might be willing to take on risk for higher premiums and target young drivers.
By understanding this, you can understand why it is so important to compare the premiums offered by different brokerages and agencies in Lewisville before you assume you are getting a good deal.
How to Save Money On Your Lewisville Car Insurance
If saving money is your priority, there are plenty of ways to do this without automatically lowering your liability limits or rejecting optional coverages.
Knowing how you can save money is important so that you are not vulnerable on the road for the sake of saving a few dollars each month.
Here are some of the tips from auto insurance experts that you should keep in mind as you start the quoting process:
Price the cost of insurance before buying a car if possible. A vehicle's safety record significantly affect your rates.
- Consider the vehicle's age and value before purchasing full coverage. If the values of the car is worth less than 10 times the premium, full coverage may not be advisable.
- Raise low deductibles on cars with full coverage. Most agents recommend increasing a $100 or $200 deductible to $500 for the cost savings.
- Take advantage of multi-car discounts if you own more than one car. Rate the extra vehicle as a pleasure vehicle for lower rates.
- Buy another line of insurance with the same company for a multi-line discount applied to both types of insurance. The savings on these discounts add up and make servicing the policies more convenient.
- Maintain good credit. In Texas, your credit is considered when calculating your likelihood to file a claim.
- Remove risky drivers from your policy who do not have access to your policy or who have their own insurance.
- Comparison shop so that you can find the lowest premiums.
Comparison shopping does not have to be difficult when you want to find the best Lewisville car insurance prices. To make the process less stressful and much less daunting, use an online rate comparison tool and compare the premiums with reputable Texas insurers.
These tools give you an advantage as a consumer because the companies must fight for your business by being competitive. Gather your documentation, enter the data, and see how much you can save.
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