car insurance texas

Texas car insurance

Texas has relatively inexpensive auto insurance rates as compared to the rest of the United States. This is because of its large rural areas, relatively low vehicle theft and lower than average traffic congestion. Insurance prices are affected by the types of coverage people purchase as well as other factors. Texas is a state with a healthy economy so people are more likely to purchase new cars. Statistically new car owners are more likely to purchase physical damage coverage for their new vehicles. The combined affect of this is to increase auto insurance expenditures. Thus areas with a higher per capita income will have higher auto insurance prices. Texas is a tort liability state and that means there are no restrictions on lawsuits between drivers. This means that drivers in Texas can sue each other for out of pocket medical expenses and secondary damages such as emotional distress. Despite this Texas has fairly cheap auto insurance prices as compared to other more urban areas.