Texas Insurance Rates to Rise with New Year

As people begin thinking ahead to 2011, one important change will be implemented for drivers with auto insurance. With the passage of increased liability limits in 2007, Texans will notice an increased insurance rate of two or three percent to cover the additional insurance protection in 2011.

While the two to three percent rate increase that is expected to come from the increased coverage limits is minimal, many consumers question the reason for the rising costs. According to CBS, the increase in auto insurance minimum requirements is meant to address rising medical costs associated with car accident claims. Rising medical costs, meaning the cost for post-accident medical care and treatment, have increased in recent years and in 2007, the Texas Legislature took action in an effort to ensure that car accident victims have the proper insurance coverage.

CBS reported that approximately 7 million Texans will be affected by the coverage and rate increases. Approximately half of insured drivers opt for the least expensive insurance option, which is just liability coverage, not collision coverage.

Increasing Liability Insurance Coverage

Under the current minimum limits, a driver must have at least $25,000 in injury coverage, $50,000 in accident coverage and $25,000 in property damage coverage per accident. Now, the new minimum liability limits will increase to $30,000 for each injured person, $60,000 for each accident, while the property damage minimum limits will remain the same.

The new rate and coverage increase will not occur automatically on January 1; instead, the increase will be activated when the auto insurance policy is renewed in 2011.

After a Car Accident, Contact a Texas Lawyer

It is important to remember that insurance companies have an obligation to pay rightful claims after a car accident. If the insurance company fails to uphold their obligation to pay a legitimate auto accident claim and denies your claim, then a skilled car accident attorney can help you gain compensation for your injuries.