Auto Insurance
Auto insurance protects drivers from potentially catastrophic expenses, providing financial assistance in case of an accident or theft. It is required by law in most states and may be customized according to your requirements.
How Does Auto Insurance Work? 
Car insurance is an agreement between a policyholder and an insurance company to provide financial cover in case of an accident. After a policyholder pays the premium, the insurer agrees to pay for certain damages, injuries or losses up to the policy’s limit.
The specific benefits a car insurance policy provides depend on the coverage you choose. In Texas, drivers must have two types of liability coverage in their policy:
- Bodily injury liability—This protects you financially if you are found legally responsible for injuring others in a car accident. It helps pay for lost wages, medical bills and legal expenses.
- Property damage liability—This coverage can reimburse repair or replacement costs if you were at fault for another party’s damaged vehicle or property.
How Much Is Auto Insurance in Texas?
The cost of auto insurance in Texas varies widely depending on several factors, including:
- Location—Insurance premiums tend to be more expensive in urban areas like Dallas or Houston compared to rural parts of the state.
- Driving record—Drivers who have been involved in an accident or have traffic violations may face higher insurance premiums.
- Age—Young drivers and seniors over 65 usually have to pay more in insurance premiums due to the high risk they pose on the road.
- Credit score—Texas is one of the states that allows insurers to use credit-based insurance scores to set rates. Drivers with lower credit scores may see increased rates, as insurers often correlate credit history with the likelihood of filing claims.
- Vehicle type—More expensive or high-performance vehicles typically carry higher premiums due to the increased cost of repairs or replacement.
- Coverage limits—Rates are affected by the extent of coverage you choose. A policy with more comprehensive coverage normally costs more than basic liability coverage.
Insurers weigh these factors differently, so it is essential to assess your needs and discuss them with an insurance agent.
How Much Auto Insurance Do I Need in Texas?
There is a wide variety of auto insurance coverage to consider when creating a policy that fits your budget. Experts recommend purchasing more than the minimum requirement, as higher limits ensure you are covered for major accidents. Opting for lower liability limits or higher deductibles may reduce your premium but provide less protection.
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Giles Insurance Agency is here to assist you in finding optimal insurance solutions. Contact us today.