Re: [a/s] Insurance in Texas

[John Hilty <hilty@xxxxxxxxxxxxx>]

Just some general info about insurance in Texas from a former Texas
insurance agent. Texas insurance policies are different from all other
states even though there are some basic similarities. Texas has what is
called 'standard' policies which are the same from company to company.
The coverage and wording of the policy is mandated by the state
insurance commission. The things that affect the price of coverage fall
into four major areas:

1. Type of company writing the insurance. Companies can be 'standard' or
higher risk, i.e. 'county mutual' companies. A standard company charges
the 'standard' rates set by the state but can apply for a deviation from
that rate based on loss experience and the type of driver, etc. they
insure. A standard company can charge less or more than the standard
rate. The county mutuals usually charge higher and sometimes much higher
than the standard rate because they insure more risky drivers, vehicles,
etc.

2. The county in which you live. Rural counties have lower rates than
the urban counties. Harris (Houston), Dallas, Tarrant (Ft. Worth) and
Bexar (San Antonio) counties have the highest rates. There are more cars
to run into and be run into by.

3. Use of the car and drivers classification. From most expensive to
least: Male under 21; male under 25; female under 21; business use
vehicle; vehicle adult driven to work or school, vehicle not driven to
work or school.

4. Driver experience - bad that is, i.e. accidents and citations. Rates
will not generally be affected in a standard company, but they will
cancel you or move you to a county mutual if you have too many and they
become aware of it. County mutuals can charge an additional 15% or more
of already higher rates for every incident on your record.

Liability rates are not affected by the price of the vehicle, but
comprehensive and collision rates are. Probably because you can kill
someone (liability) with a cheap car or truck as easily as with an
expensive one, but if you wreck your own expensive truck (collision) or
drive it in a hail storm (comprehensive) it will cost more to repair.
The higher the cost of the vehicle new, the higher your comp/collision
rates. The rate declines for the first four years after the car is made
then stays the same. 

So, in Texas anyway, you will have the cheapest auto insurance rates if
you insure with a standard company that discounts its rates, live in a
rural county, are an adult driver who doesn't use the vehicle in
business or to drive to work or school, have a clean driving record, and
drive a 4 year old vehicle that did not have a high cost new.

You will have the highest rates if you are a teenage male living in
Houston driving a new Corvette insured with a county mutual company and
you have several tickets and accidents on your record.

A fulltimer (retired or not working) in Livingston Texas (a rural
county) insured with Allstate (a standard company) and presumably with a
clean record, but driving a new high dollar red truck, should have a
pretty manageable premium.

I hope this has not put you all to sleep. It has me.

John H.