Getting Automobile
Insurance
In Texas you must have auto insurance before
you can drive a car. You must show that you have insurance before you get your driver license. You must also show proof of
insurance when you buy a car, and again each year when you have your car inspected for safety. Your insurance company will
give you a “proof of responsibility” form for this purpose.
Are
there different kinds of car insurance?
There are many companies that sell
automobile insurance. And there are many types of automobile insurance:
Liability insurance pays other people if you hurt them or their property in an auto accident
that is your fault.
Collision insurance
pays for damage to your car, if the accident was your fault.
Comprehensive insurance pays for damage to your car caused by the weather or
by a burglar (if someone breaks into your car).
Uninsured motorist insurance pays for damage to your car caused by someone who
does not have insurance.
All
drivers in Texas are required to have Liability insurance. You may buy the other types of insurance if you wish.
If your car is not worth very much money, you may decide you do not need the other types of insurance. But
if your car cost a lot, or if you borrowed money to buy your car, you may need to have the other types of insurance.
How
much will I pay for car insurance?
The price you pay for insurance is
called the “premium.” The amount of your premium depends on the type of insurance you buy, and the
company you buy it from. Some insurance companies charge higher prices than others, so you should ask two or
three companies for their prices.
If your car is expensive, then your Collision, Comprehensive, and Uninsured Motorist insurance will cost more
than if your car is not worth much.
If
you have had traffic accidents or traffic tickets in the past, your insurance will cost a lot more. Also if you
are a man under 25 years old, your insurance will cost more than for other people.
In general, if you are over 25 years old and don’t have any traffic tickets or accidents,
your Liability insurance may cost about $300-$400 per year in Houston. If you need the other types of
insurance too, the total premium may be $1,000-$2,000 per year for each car your drive. If you have accidents
or traffic tickets, you may have to pay twice this amount. Most insurance companies will allow you to pay part
of your premium every 3 or 6 months.
How can I find
good car insurance?
The state of Texas publishes the Liability
premiums for different insurance companies, for different ages of drivers. The state also keeps records of which
companies receive the most complaints from their customers about bad service. You can check these records on
the Texas Department of Insurance website.
Here are some companies that have
lower-than-average premiums and good customer service, according to 2007 Texas Department of Insurance information for
the city of Houston.
- Allstate Fire and
Casualty Insurance Co., 1-866-621-6900.
- AMICA Mutual Insurance
Co., 1-800-652-6422.
- GEICO, 1-800-861-8380.
- General Insurance Company of America, 1-888-458-2246.
- SAFECO
(enter your ZIP code on their website and you will see a list of agents near you).
- Southern Farm Bureau Casualty Insurance Co., 281-440-8067.
- State Farm Mutual Insurance Co. There is a State Farm office in nearly every shopping center
in Houston, so just walk in and they will talk with you.
You
may want to compare rates from several companies by using www.insweb.com. This website compares rates from several different insurance companies for
your specific cars, age, and driving record.