What Factors Affect My Auto Insurance Rates?

Texas drivers are required to carry auto insurance. Additionally, every driver must have proof of coverage to show upon request by a law enforcement officer. The minimum amount of required coverage is often listed as 30/60/25 to protect you in the event of a car accident. This means you must have:

  • $30,000 in bodily injury coverage per person, the maximum amount an insurer will pay for a single person that you injure in an accident
  • $60,000 in bodily injury coverage per accident, the maximum amount your insurer will cover for all injuries in an accident you cause
  • $25,000 in property damage per accident, the maximum amount for damage to cars or other property you cause

You can purchase more than this minimum coverage, but whatever coverage level you purchase, the insurance company will look at many different factors to determine how expensive your monthly premium will be.

How Do Insurers Decide How Much to Charge for a Policy?

Every insurance company has its own methods for calculating risk and costs, but the following list includes some of the factors that are very likely included:

  1. Where you live: Insurance companies consider some urban areas to have a higher risk of vandalism and theft, making insurance more expensive. There may be a higher rate of accidents in certain areas. Insurance companies consider these factors when determining cost.
  2. Your driving history: If you have DUIs, previous crashes, tickets or other infractions on your record, your insurance costs can be significantly higher.
  3. Type of car: Minivans are often the least expensive to insure, while sports cars are the most expensive. New cars also cost more to insure, as do luxury cars and other cars with high repair costs.
  4. Your gender: Men pay more for insurance coverage in Texas than women, according to independent insurance evaluation site AutoInsurance.org. Not all insurance companies consider gender, but many do.
  5. Your age: Typically, drivers under 25 have to pay more for insurance because they don’t have as many years of experience. Senior drivers may also see rate increases, as statistics show older drivers get involved in more fender-benders that require insurers to cover repair costs.
  6. The deductible: Liability coverage doesn’t have any deductible, but full coverage does. The higher the deductible you choose, generally the lower your monthly premium will be.

What Cannot Be Considered by Insurers?

Insurance companies by law are not allowed to consider your race or religion when calculating your premium.

How Our Dallas Personal Injury Lawyers Help After Car Accidents

No matter what insurance coverage you have, if someone gets injured it is in your best interest to contact a personal injury attorney. Insurance companies are notorious for treating people unfairly, and you should be ready to fight for your rights.

The Dallas car accident lawyers of Ted B. Lyon & Associates know all the ins and outs of Texas car insurance and can help you in the event of a crash. Give us a call at 866-503-4864 or send us a message.

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