The requirement to provide insurance, or proof of financial responsibility, when driving a motor vehicle that you own is not new. The State of Texas passed the Mandatory Automobile Liability Insurance Law in 1991. Louisiana and other states have enacted similar legislation. Many loathe the requirement but many that have fell victim to an uninsured motorist (including myself), laud the requirement and its diligent enforcement by our law enforcement.
While limits of liability are set $30,000 per person, $60,000 per accident, $25,000 for property damage (LA is $15,000 per person, $30,000 per accident and $15,000 for property damage), the amount to repair / replace the average vehicle has increased tremendously and if you only maintain the State Required Limits, YOU ARE UNDERINSURED! Additionally, if multiple people are injured and other property (other than a single vehicle) is damaged, you can expect to be sued.
In Texas, more than 25% of drivers drive without insurance. If you have an accident with an uninsured motorist, your insurance will have to respond. If you do not have uninsured motorist coverage or comprehensive / Collision coverage and you were not at fault, your coverage will not respond. While uninsured motorist was traditionally included on many personal auto policies, we are seeing many traditional insurance carriers remove the coverage to reduce the increasing cost of the coverage.
What does this mean…….. If you are not sufficiently insured, you can expect to pay out of pocket for damages.
Here are some statistics. Based on reportable crashes in 2016(1)
· 1 person was killed every 2 hours 20 minutes
· 1 person was injured every 1 minutes 59 seconds
· 1 reportable crash occurred every 57 seconds
· There were 14,202 serious injury crashes in Texas in 2016 with 17,582 people sustaining a serious injury
· Texas experienced an increase in the number of motor vehicle traffic fatalities. The 2016 death toll of 3,773 was an increase of 5.45% from the 3,578 deaths recorded in 2015.
· 265,076 persons were injured in motor vehicle traffic crashes in 2016.
· The annual vehicle miles traveled in Texas during 2016 reached 261.994 billion, an increase of 1.5% over the 258.122 billion traveled in 2015.
The auto insurance industry is extremely competitive. ALL insurance carriers have reported significant losses in 2017 and we are expecting additional rate increases next year. However, we have witnessed many, WELL KNOWN, insurance companies that are offering and changing their customers coverage to policies that take away coverage and not offering the best protection.
No one expects to be involved in an accident and if you are like me, you do not purchase insurance expecting the insurance company to pay a large claim however, accidents happen and when you, unknowingly, purchase or change to one of these LESSER coverage options, you are exposing yourself and family to financial hardship – Exactly what insurance is designed to protect. Before you change to one of the LESSER Coverage options, please call our team to discuss the coverage options available to you. In most cases, our comprehensive offering cost very little more but provides GREATER COVERAGE. Let us be your dedicated insurance expert and guide you through the options of insurance. Whether you are seeking protection for your HOME, AUTO, COMMERCIAL, HEALTH or LIFE, we can establish a comprehensive plan to protect all that you have worked so hard to create for yourself and Family.
If you have more questions regarding your auto insurance contact ABM Insurance & Services at 800-362-2809 or www.getagreatquote.com/research-center/auto-insurance
1
Texas Motor Vehicle Traffic Crash Facts Calendar Year 2016