Reader’s Question:
I’m planning to move to Texas a few months from now. I’ll also be renewing my automobile insurance by that time. Will the automotive insurance quote that I will get be affected by the fact that I’m in a new state?
Cherry
Tucson AZ
Each state has its own requirements that will affect any automotive insurance quote that you will ask. In Texas for example, they have a law that if you drive, then you should have the capacity to pay for accidents that you cause. It is because of this law that most Texans acquire insurance, specifically liability insurance. Although this type of insurance can pay for any damage done to another party’s person or car, it does not pay for whatever injuries you get or damages your car has.
Strict if you think about it but it only means that you have to get another insurance. Under Texas’ financial responsibility law, the minimum is $25,000 per person injured per accident up to a maximum of $50,000. For damage done to properties, the minimum is set at $25,000. In Texas they call this the “25/50/25″ policy. If you do not meet these standards, then you will be liable to pay for penalties. For the first violation, you will pay a fine of around $175 to $350. Your next violations could net you between a $350 and a whooping $1,000 penalty. Your license could be suspended and worse, your car impounded.
Don’t give up though. Because of the mere fact that you know the minimum, then you will be able to estimate how much you will need and get the right automotive insurance quote. Keep in mind that if the limit you chose is low, then the other driver could sue you in order to collect the cost difference. Thus you can either go for a higher coverage or get a second insurance.
Aside from the financial responsibility law, Texas also has a Bill of Rights for automobile insurance holders. Under this law, the insurance company is required to send a copy of your policy to you. When they send you that copy, read it to be sure that it complies with state laws. Good luck on your move to Texas and don’t forget to get automotive insurance quotes before everything else.
