Austin, Texas has the same car insurance laws as the whole State of Texas. However, if you live in the Austin area, you may pay a much lower rate than someone who lives in a much larger city like Houston that is exposed to higher risks while driving. However, before you purchase car insurance, you want to ensure that you purchase the best insurance at the lowest cost. Of course, if you’re like many people, you may not think that you can afford car insurance, or it’s not important to carry Insurance in Austin. Here are some things that you should consider before you decide to forgo this important coverage.
In Texas, you’re required to maintain liability and property damage coverage on any vehicle you intend on driving on a public road. In this case, your requirements are to maintain a minimum coverage of 30/60/25. These numbers represent liability coverage in the thousands – $30,000/$60,000/$25,000. The first two numbers represent the coverage for injuries caused in the accident individual versus total accident and the last number represents the cost of damages specifically property damage.
If you don’t carry the required minimums on your car you can face penalties from the State of Texas. The first fine is just $175. However, each subsequent fine gets higher until it reaches $1000. Additionally, after the third time, you will also lose your car and your driver’s license, and it can be costly to get those back.
Another thing that you have to consider is that if you don’t carry Insurance in Austin, you are still financially responsible for any accident that you may cause. Since a serious accident can result in serious injuries and a totaled car, you can expect the cost to be quite high. If you can’t pay for the damages, you can be sued, arrested and fined as well.
Lastly, you may be contractually obligated to carry car insurance. If you borrowed money to purchase your vehicle, then it’s very likely that you signed an agreement that you would carry full insurance on your vehicle. If you break your contract, you could lose your vehicle or the bank may require you to pay off your loan all at once.
If you don’t have car insurance then it’s time to get some. Start by getting a Car Insurance Quote today!
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