Is Car Insurance Cheaper in Texas or
Car insurance rates vary among states, just
like how insurance companies have also varying insurance premiums. Here we look at two states and compare
which one of them offers cheaper car insurance.
Car Insurance in Texas (TX)
In the state of Texas you’ll find many
car insurance agencies offering cheap insurance premiums. If you want to find the best
quote that will suit your standards, it is advised to search within you area or state
Car insurance in Texas requires the following:
· The law requires that every car owner or driver
must be able to carry an insurance that covers Bodily Injury Liability of up to $50.00 for every accident and
$25,000 for every person.
· From April 2008, 25/50/25 coverage was implemented,
which meant that Property Damage Liability must be purchased at $25,000 minimum. However, by January 2011, the
rates went up to 30/60/25.
· According to the Texas state Tort system, in order
to claim insurance, the person involved in an accident must be found “at fault”; otherwise, the insurance company
will not be responsible for the damages.
· Uninsured or Underinsured Motorist Bodily Injury
insurance coverage is not required in the state of Texas but it is recommended by the insurance
In 2010, research showed that the state of Texas has annual rates
slightly above the average. They have been generating an annual amount of $1,571 compared to the national
average which only comes at about $1,566. A common misconception among many people is how insurance companies
collaborate to set rates. As a result, they don’t look for other options and settle for the first one they
come across. Insurance companies don’t have a fixed rate, and their offers may vary from one another as also
their marketing strategies. In Texas you can search for possible money saving deals at CheapCarInsurance.net
where you can also find rate comparisons.
Car Insurance in Colorado (CO)
In the state of Colorado, offered car insurances are considered
unique. They are among those who rank in the higher 1/3 of the country when it comes to insurance premiums
averaging at about $850 annually. But although this is the case, you can still find cheap insurance rates
offered within the state.
If you are planning to get your car insurance in the state of
Colorado, you must first learn about the amount of coverage that is required, since both coverage and
liability amounts significantly varies. Car insurance is governed by the state and the laws are different
from all other states.
Car insurance in Colorado requires the
In other states, insurance companies
provide a minimum amount of $100,000 as coverage for bodily injury, and $300, 00 for every accident. However, in
Colorado, the state only requires car drivers to carry $25,000 for bodily injury and $50,000 for every
The law states that for property damages,
the amount required will be $15,000.
Coverage for uninsured drivers, collision
or comprehensive insurance is not mandatory. However, the state requires every insurance company to provide it
Medical policy is not mandatory, but if
in any case the policy holder does not decline the offer, it will be directly added to the insurance policy
amounting up to $5,000.
Colorado is a state with large open spaces and low population,
which is why driving styles in that area, differs from any other places in the country. Record shows that
their accident rate is very low compared to others. Many companies provide sufficient coverage at cheap
rates. You should also search for discounts and offers that are best for your limited budget especially if
you are a first time driver. Common offered discounts include coverage for multiple vehicles, low mileage and
Texas Vs Colorado
According to the National Association of
Insurance Commissioners, statistics showed that car owners or drivers in the state of Texas have higher rates of
car insurance premium compared to the state of Colorado. Since 2007, Texas car insurance premiums had an average of
$808, while Colorado car insurance had an average rate of $738
That answers the question of which among the two states offer
cheaper car insurance rates. If you want real savings, you should shop for more car insurance quotes in your
area or online. Comparing more than four insurance deals will help you in knowing which of them will be able
to provide you with sufficient coverage and greater benefits in the long run. Others may seem to be very
attractive at first glance but if you add all the extras, you’ll find that the service you get is not
adequate compared to what you pay for, so be wise and thorough.