Thursday, November 17, 2011

Texas Auto Insurance - What Is The Right Policy For You?

Auto insurance can be confusing anywhere in the country and Texas is no exception. Finding the right Texas auto insurance can seem like a daunting task. Many people have had the same coverage and insurance company since they bought their first car. That is not always the best decision. Taking a step back and looking at your options may save you money and get you better coverage. Ask yourself a few questions: What kind of policy do I have? What is my deductible? What is my premium? Does my policy offer any benefits? If you know the answer to all of those questions then at least you have some sense of your coverage. Now it’s time to analyze your answers.

There are two extremely different types of policies: full coverage and liability (minimum coverage). Most people can distinguish between the two but not know exactly what is right for them. Full coverage protects you and your car from damages even if the accident is your fault. Liability only insures the other vehicle or person involved in the incident. Determining what is right for you comes down to your budget and the type of vehicle you are driving. If you can afford the higher premium and your car holds a decent amount of value, than full coverage would be the option for you. If your car holds very little value and you have a tight budget, than minimum coverage is all you need. Determining your deductible is the next logical question to ask. Basically the lower your deductible is, the higher your premium will be. A good way to determine what you want to do here is base it off your previous driving history. If you are prone to accidents than a lower deductible will save you some up-front costs at the time of an incident. If you are a safe or less frequent driver you may want to consider carrying a higher deductible. This will lower your premium and only affect you in the case of an accident. So what else can your Texas auto insurance cover? Some add-ons include incidental damage like vandalism or incidental accidents. Typically the only reason to carry this coverage is if you have a very valuable car or you are a stickler with keeping it pristine.
Answering all of these questions and researching your current policy can prove to be beneficial in the end. It may be a hassle to dig up all of this information, but it could end up saving you hundreds of dollars on your Texas auto insurance.

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