Every driver needs car insurance, but many make the mistake as simply buying the same amount as their parents or friends. Each vehicle and driver are different, and thus you need insurance tailored for you and your vehicle.

State Required Insurance

At the very minimum, you must carry the amount of car insurance required by your state. Each state may have different limits, so check your area below to determine how much minimum car insurance you need.

Most states require bodily injury liability and property damage liability, which covers expenses related to injury and property damage you may cause while operating the insured vehicle. This includes coverage for medical expenses related to an injury another driver or their passengers may sustain.

Requirements are presented as per person/per accident/per accident.

According to Texas law, all drivers within the state must carry at least:

• $30,000 in bodily injury liability per person
• $60,000 in bodily injury liability per accident
• $25,000 in property damage liability

This doesn’t mean you have to purchase only the bare minimum, however. If you believe you need higher liability limits due to the nature of your vehicle (if you drive a sports car, for example) or any other reason, you should ask your insurance agent about possibly purchasing higher limits of liability.

Additional Insurance Options

Aside from state required insurance, you should also invest in enough coverage to compensate for physical damage to your vehicle. This can be calculated depending on your vehicle’s value. Important coverages included in full coverage policies include:

• Comprehensive coverage provides compensation for damages to the insured vehicle due to fire, wind, hail, lightning, smoke, falling objects, theft, vandalism and other incidents not involving collision.
• Collision coverage provides compensation for damages to the insured vehicle due to collision with another vehicle or object.
• Medical payments cover the medical expenses of the driver and their passengers after an accident, no matter who is at fault.
• Uninsured/underinsured motorist coverage provides compensation for accidents involving another driver who is not carrying insurance at the time of the accident.
• Roadside assistance covers expenses related to unexpected trip interruptions, such as a flat tire, running out of gas and towing.
• A full coverage policy is no single policy. It is simply a car insurance policy that contains the most amount of coverage that is available to cover your vehicle. Many drivers have full coverage car insurance without even realizing it.

Do I Need Full Coverage Car Insurance? 

It’s generally recommended that drivers carry full coverage car insurance to protect against any possible incident. If you only have liability and a tree falls on your car, for example, you would be looking to pay for repairs out of pocket without comprehensive coverage.

On the other hand, there are instances where you may not want or need full coverage car insurance. Say you drive a vehicle that is almost fifteen years old. Its parts are no longer replaceable, and the value of the vehicle is depreciated greatly over the years. In this case, it could be more expensive to insure the vehicle with full coverage than it would be to simply replace the vehicle after an accident. You could actually save money by simply choosing minimum auto insurance requirements, especially if you plan on replacing the vehicle if anything happens to it, anyway.

Can I Drop from Full Coverage to Liability?

You should be able to adjust you car insurance coverage at any time, although it’s recommended that you speak with your car insurance agent before making drastic changes. But if the value of your car depreciates and you decide that you’d rather only have liability insurance, you should be able to adjust the coverage on your policy. The opposite is also true. Say you have only liability coverage on your policy, but your teenager is added to your policy. Teenagers are statistically more likely to get into accidents, so you may want to upgrade to full coverage car insurance.

Is Full Coverage Car Insurance More Expensive Than Liability?

As a rule, the more coverage you have the more you will pay in monthly premiums. To compare, the average cost of full coverage car insurance in Texas is around $1,823 a year (about $152 a month) while the average cost of minimum liability requirements in Texas is about $414 a year (about $25 a month). This is a large difference, but keep in mind that less coverage also means that you may be faced with paying for damages and injuries out of pocket after an accident.

There are other factors that can influence the cost of your car insurance premiums as well, such as your age, driving record, credit score and the value of your vehicle. Be sure to speak with our San Angelo car insurance agent if you need assistance deciding how much insurance you need for your vehicle.

If your car is street legal, it’s probably insurable. Insurance companies aren’t going to drop your car only because it’s an older model, whether it’s an 80’s Chevy or an original Model T. If it runs, if it’s safe, if it’s street-legal, you can insure it.

That said, there are some considerations that you need to make when insuring an older car:

• You’re going to pay more in car insurance premiums when your car lacks safety features. A lack of full airbags and anti-lock brakes won’t have your insurer dropping your coverage, but you are going to be paying higher premiums. 
• Older cars might not be worth more than liability insurance. Experts advise that you drop comprehensive and collision coverage if your monthly payment comes out to more than a tenth of the car’s value. At that point, you’re paying enough in insurance each year that you could go ahead and put that cash in your pocket and pay for the damages yourself should you be in an accident. Obviously, exceptions will be made here for classic cars, which, with proper maintenance, tend to appreciate over time rather than depreciate. 

• Make and model may have a bigger impact on your premiums than age alone. An older made with common components is typically going to cost you less when it comes to comprehensive and collision because it will be easier to repair. Older foreign cars are typically more expensive to insure because they have so many parts that need to be special ordered. 
• If you have an old car that doesn’t run anymore, but which you want to keep, you can cancel your insurance on it, but you will also need to cancel your registration. Most states require that any registered vehicle be covered by an auto insurance provider whether it still runs. 

If you just can’t part with that old car, whether it’s a classic or you just happen to have some sentimental attachment to it, there’s no reason you can’t keep driving it for as long as you can keep it running, and keep it street-legal. But you probably don’t want to bother with full coverage if it’s not worth nearly what it used to be worth. Sadly, car insurance generally doesn’t cover sentimental value, but then, you can’t really put a price on that. 

One of the most common causes of high business insurance costs is liability claims. A liability claim occurs when someone suffers a loss you or your business cause. They file a claim with your insurance company for the losses they face. The goal of business insurance is to ensure you have financial protection for these instances. Yet, taking steps to reduce how frequently you file such claims can help save you money. What can you do to make your risks more manageable?

What Are Your Claims? 

 Most companies will have a few liability claims throughout their operating life. For example, trip and fall claims can occur in just about any business. You may suffer claims from defective products sold or from food that makes an individual ill. Your business insurance will cover these claims. However, you should take some time to look for any instances of patterns here.

 

Slip and Fall Claims 

 You may be able to minimize these liability risks with better oversight. Are people slipping on the floor due to poor mopping skills? Is there a lack of wet floor signs? Perhaps the parking lot is a risk because of uneven pavement. Fix these problems if possible. It might save you money in the long term. It also helps you keep employees safe.

Defective Product Claims 

Things like selling a defective product can be hard to prevent. Yet, proper training methods can help. Teach your employees to recognize when something might have damage. Another step is to consider a quality assurance process. Implementing one can help cut the risk your products will cause financial loss to another person. 

Food-related Illness 

If you operate a restaurant or food business, focus on training and safety procedures. It may be possible to reduce these risks with simple improvements of food safety standards. Turn to your local health department for oversight. Some will offer an inspection to determine where risk areas may be. While this may be worrisome to some, it can help you tackle concerns especially if they occur frequently. 

Business insurance can help you cover these risks when they happen. Yet, to keep your costs low, it is best to simply work harder at minimizing liability claims. Your company will often see insurance rates fall over time if you take these steps. Your insurer may even offer some advice on areas of concern. Speak to your agent. Determine where your biggest risks and largest claims are. Find ways to minimize those specific areas. It will save you money as a result.