Most of the major auto insurance providers in the state of Texas are considering increasing the premiums for the car insurance policies. This, they say, is being done due to the losses sustained and the revised liability limits that can into implementation early this year.
Every state in the country has a set of minimum liability that has to be covered by every company that offers auto insurance coverage in the state. These minimums vary across the states and can be revised if deemed necessary. Texas is one of the states that have brought about some new minimum liability rules for every policy. As per the revised rules, the coverage for bodily injury for each person is $30,000 and per accident it is $60,000. The limit for property damage coverage currently stands at $25,000.
Mark Hanna, who works with the Insurance Council of Texas, said that the auto insurance providers in the state were not allowed to increase the price of the premiums before these new rules came into effect earlier this year. However, with these rules now being implemented, the providers are not increasing their prices, but are just adjusting them based on the changes brought about.
Southwestern Insurance Information Services’ spokesperson, Jerry Johns, said that the increasing fees to avail physician services and hospital facilities are also reasons for the increase in the auto insurance premiums. The increase in the premiums, he says, are indeed necessary, but are going to be modest so it does not impact people greatly. The United States Department of Labor’s August Consumer Price Index report clearly reveals that the cost of medical facilities has increased by over 3 percent as compared to the same time last year.
Johns went on to add that many of the auto insurance policy holders in the state, especially the ones who have their insurance with State Farm, are going to be a happy lot since they may see a fall in the premiums they pay. This is evidence to the fact that the auto insurance sector is still highly competitive and customers can benefit from it. Now, it becomes even more important to shop around extensively in Texas and get quotes from multiple providers before making your final choice. Considering the fact that customers may have to stretch themselves thin to pay their coverage cost, a little scouring around at the onset can prove to be a money saving exercise.