Texas Auto Insurance

The state of Texas does not have a general cell phone law but they do allow municipalities to enact laws regarding cell phones and there is a law in place for cell phone usage in school crossing zones.  Austin has a law in place banning the use of any wireless communication device while operating a motorized vehicle.  In June of 2009 a bill was passed and signed by the governor which prohibits the use of wireless communication devices in school crossing zones unless they are hands free.  However, drivers under age 18 are not allowed to use wireless communications devices during the first 6 months of their original license.  The exceptions to all of these laws are cases of emergency.  Check with your city government to see if they have laws concerning wireless communications while operating a motorized vehicle to be on the safe side.

Under Texas law, insurance companies may exclude a driver in your household from inclusion on your auto insurance policy for legal reasons.  If a driver is excluded from the policy, they have no liability coverage but you still have the liability exposure if they drive one of your vehicles and get in an accident. Any exclusion will be listed in the exclusions section of your policy with all other conditions which release the insurance company from paying claims.

The state of Texas has put a new program in place which notifies the state if your policy has lapsed.  Law enforcement officers and other state officials have access to this information.  A lapsed policy is the same as not being insured at all.  Failure to provide proof of insurance required by any communication from the state according to the conditions set by that correspondence will result in the loss of your driver’s license. 

Using your credit history to determine rates and renewals in the state of Texas is an accepted policy.  Your credit history cannot be used to raise your premiums or canceling or refusing to renew a policy which is already in force.  They have to show that the credit history is used only for evaluation purposes and is used in connection with other factors which have a direct effect on insurance claims.  Keep in mind that insurance companies use several factors to make insurance decisions such as age, gender, marital status, driving record, and make, model, and year of vehicle to be insured.

Texas is a tort state which means you can be personally sued for injuries, deaths, and damages beyond the amounts your insurance policy covers.  The individual found to be at fault will be responsible for the damages and injuries which result from that accident.  Most insurance companies will encourage you to carry more than the minimum liability insurance limits.  As of 2006, the average insurance premium in Texas was about $820.00 and had the 20th most expensive auto insurance premiums in the nation as of 2006. 

There are 35 state licensed insurance companies in Texas.  They are AAA Texas Country Mutual Insurance Company, AIG Casualty Company, AIG Centennial Insurance Company, AIG MGA, Incorporated, Allstate County Mutual Insurance Company, Allstate Fire and Casualty Insurance Company, Charter General Agency, Criterion Insurance Company, Encompass Indemnity Company, Esurance Insurance Company, Farm Bureau County Mutual Insurance Company of Texas, Farmers Texas County Mutual Insurance Company, GEICO Indemnity Company,  Government Employees Insurance Company, Hartford Casualty General Agency Program, Hartford Fire General Agency Program, Liberty County Mutual Insurance Company, Nationwide Insurance Company, Loya Insurance Company, Merastar Insurance Company, Mercury County Mutual Insurance Company, Metropolitan Lloyds Insurance Company of Texas, National General Insurance Company, Progressive County Mutual Direct Rates, Progressive County Mutual Insurance Company, Safeco General Agency Insurance Company, State Farm Mutual Automobile Insurance Company, State Farm Mutual Insurance Company of Texas, Texas Automobile Insurance Plan Association, Texas Farm Bureau Mutual Insurance Company, Titan Insurance Services Incorporated – Nationwide, Trinity Universal Insurance Company, United Services Automobile Association, United Direct Insurance Company, USAA County Mutual Insurance Company, and Wright – Titus Agency – Travelers Insurance Company.

Some things you can do to reduce your premiums are to maintain a clean driving record, and drive a vehicle with a good safety rating.  Other things that can affect your insurance are the area where you live and work and the traffic volume in that area.  If you have a teenage driver, it may be less expensive to include them on the family policy.  Stress with them the importance of maintaining good grades and a clean driving record as these will help to defray the cost of premiums.  Your age, the age of your car as well as its condition and the type of vehicle you drive, your gender, and your marital status will play a factor in the cost of your auto insurance premiums.  Another thing to be aware of is the most frequently stolen cars in the state of Texas.  The list below is from 2006

1. 1994 Chevrolet C/K Pickup (Full Size)
2. 1997 Ford F150
3. 1996 Honda Accord
4. 2003 Dodge Ram Pickup
5. 2000 Honda Civic
6. 1994 Chevrolet Suburban
7. 1990 Toyota Camry
8. 1994 GMC C/K Pickup (Full Size)
9. 1997 Ford Taurus
10. 2002 Ford Explorer