As of December 2013, the state auto insurance premium stands at an average $1545 in Texas. Being mandatory in Texas, as in most other states, auto insurance is a significant expense in owning and operating a vehicle. While the minimum requirement is to have liability coverage, there are other forms of coverage such as uninsured motorist coverage, comprehensive coverage, etc. that you may consider buying.
When buying insurance, your previous driving record has a big impact on the premium rate that you will end up paying. For instance, even though the average premium rate in Dallas is $1527, you may end up paying $2840 if you have been caught drunk driving. Similarly, accidents will lead to higher premiums. Most insurance companies will raise your premiums when it comes to time to renew your policy if you have had accidents.
The National Highway Traffic Safety Administration (NHTSA) estimates that there were 2.36 million people injured in motor vehicle accidents in 2012. The corresponding number for 2011 was 2.22 million. In 2012, 3398 people lost their lives in motor vehicle accidents in Texas. All these factors contribute to a higher premium rates.
In terms of insurance premiums, accidents can be an expensive affair. For instance, if you live in Fort Worth the average insurance premium you can expect to pay is $1318. However, one accident will drive up your premium to $1623. A second accident will drive it up further to $2422. Not only that, you’ll end up paying higher rates for up to three years following accidents. However, if you cause an accident that leads to major property damage or serious injury your premium may double. In Fort Worth, that would mean a rise to $2636 in one shot. A defensive driving course will help you reduce your premiums a little. More importantly, it will educate the drivers making them better equipped to drive in adverse conditions and help minimize accidents as well as insurance premiums.