Liability insurance, which is mandatory in Texas, refers to coverage that protects you if you’re involved in an accident in which you were at fault. Finding cheap liability auto insurance in Texas can be challenging, but there are several companies that offer affordable rates. There are also certain steps you can take to help lower your liability coverage rate and decrease your overall insurance premium. Here we explore what liability insurance is, look at factors that affect its cost, and provide liability coverage rates in Texas based on insurance company.
What Is Liability Auto Insurance?
Liability auto insurance is a type of coverage that protects you in the case of an at-fault accident. In other words, if authorities find you responsible for an accident, liability insurance protects you financially. Liability auto insurance covers the medical costs of anybody injured in the accident, including the other driver. It also covers property damage for all parties involved. Researching different insurers’ policies can help you learn what their liability insurance covers and what it costs. Most companies provide these two types of liability coverage:
- Bodily injury liability: This refers to any injuries sustained by all parties involved in the accident.
- Property damage liability: This refers to property damage, such as damage to vehicles, that occurs as the result of an accident in which you were at fault.
What Factors Affect the Cost of Liability Insurance?
Factors that affect the cost of liability insurance are directly related to those that impact your overall coverage policy. There are several factors that can influence what you pay, with some of these including:
- How many other coverage options you include in your insurance plan
- Your credit score
- Previous car insurance claims
- How much your deductible is
- How much mileage you get annually
- Where you live in Texas
Cheapest Liability Auto Insurance for Drivers in Texas
Several auto insurance companies offer affordable liability car insurance rates for those who live and own a car in Texas. The following are the cheapest liability coverage prices by insurance company:
- Clearcover: $49 per month
- State Farm: $70 per month
- USAA: $72 per month
- Geico: $72 per month
- Germania: $76 per month
Cheapest Liability Auto Insurance for Safe Drivers in Texas
Being a safe driver can help save you a significant amount on your liability coverage cost. The following are the cheapest rates offered by companies for good drivers:
- Clearcover: $39 per month
- Farmers: $47 per month
- State Farm: $49 per month
- Geico: $50 per month
- Germania: $51 per month
What Are Other Types of Auto Coverage in Texas?
Auto coverage options refer to add-on insurance that can protect you financially in various situations. There are several types of auto coverage you can opt for as part of your car insurance plan in addition to liability coverage. The most common types of coverage include:
- Collision coverage: Collision coverage protects you financially should you collide with another vehicle or object. For example, if you hit a fence, collision coverage can help pay for the repair or replacement of your car.
- Uninsured and underinsured motorist coverage: This coverage protects you if you’re involved in a crash with a driver who doesn’t have insurance or who is underinsured. Uninsured and underinsured motorist coverage can help pay for medical bills and may even help you with the cost of repairing or replacing your vehicle.
- Comprehensive coverage: This coverage option helps you financially should you experience car damage as the result of various situations other than an accident. Some of these situations include fire, vandalism, and theft. Comprehensive coverage has a deductible, so you’ll have to pay this first before receiving assistance from your insurance provider.
- Medical payments coverage: Another option is medical payments coverage, which offers assistance for injuries sustained by you or your passengers in an accident. It will help pay for any medical expenses associated with the injuries, such as the cost of surgery or an emergency room visit.
- Personal injury protection: Personal injury protection, also referred to as PIP, is mandatory in the state of Texas. This coverage option helps pay for medical costs as well as other expenses you may incur as a result of your injuries. For example, if you can’t work for a period of time due to your injury, PIP may compensate you for lost wages.
What Are the Minimum Liability Auto Insurance Requirements in Texas?
Texas has set in place a minimum for liability coverage that all insurance carriers must abide by. The law in Texas requires insured individuals to have a minimum of $30,000 of coverage for injuries per person, $60,000 of coverage per accident, and $25,000 of coverage for property damage. These minimums are also referred to as a 30/60/25 liability plan.
What Discounts Are There for Liability Auto Insurance?
In most cases, the way to lower your liability auto coverage is to decrease your overall car insurance plan. There are several ways you can help reduce your insurance policy, with some of these including:
- Multi-policy discount: Bundling your car insurance with other insurance plans such as homeowners insurance can help save you money on your auto premium. This is because insurance companies award those who have two or more insurance plans with them.
- Multi-car discount: This type of discount is when you insure two or more cars with the same company. Discounts may range from 8% to 25% depending on the insurance provider.
- Good driver discounts: Car insurance providers prefer to insure individuals who have a history of good driving. Keeping a clean driving record and avoiding accidents and incidents can help qualify you for this discount.
- Pay in full discounts: If you pay your car insurance policy in full upfront, you may be eligible to receive a discount on your coverage.
Several insurance companies offer liability coverage at an affordable rate. You can help reduce your coverage costs through discounts and by maintaining a clean driving record. To learn more about and find cheap liability auto insurance in Texas, consider speaking with representatives at different insurance companies or your car dealership.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.