You must have liability auto insurance to drive legally in nearly all states to cover the other driver, including Texas. Liability insurance is usually all you need, but it does not cover your vehicle, so you may prefer extra coverage.
Collision insurance in Austin,Texas covers the damage to your vehicle in an accident, but it does not cover theft or disaster damage. Comprehensive insurance covers you for theft, natural disasters, and accidents in which you are found at fault. This information will help you determine whether or not you should purchase comprehensive insurance.
The age and value of the vehicle
Is the vehicle less than five years old? The cost of comprehensive auto insurance in Austin,Texas to replace or repair older vehicles is commonly more than the market value. Vehicles depreciate as they age, so check the Kelly Blue Book for your vehicles market value, and apply the 10% rule. If the vehicle is only valued at several thousand, or the coverage exceeds 10% of the value, you may consider removing this coverage.
Leasing a vehicle
If your vehicle is under a loan or lease, you may be required to get full coverage auto insurance in Austin, Texas, which helps to protect the lender or dealer. You can drop the coverage after the lease period is up or once the title transfers completely to you. Study the terms of the contract before you sign with a dealer or lender, and do not be attempted to drop comprehensive insurance too fast. Also, be certain to list the lender or dealer as a loss payee on the insurance contract to avoid issues later.
Claim level risk
Does your area have high theft rates? If your neighborhood has high crime rates, high deer populations, severe storms, or tornadoes, it may be wise to get comprehensive auto insurance in Austin, Texas. Otherwise, the extra cost may not be necessary.
However, do not depend on insurance alone to protect your vehicle. Install alarms to protect your vehicle, and park the vehicle in a garage and not under rotten trees which could get you a discount on premiums. If you decide comprehensive auto insurance in Austin, Texas is for you, EZ Insurance Agency will be happy to answer your questions.