OnlineAutoInsurance.com has performed an analysis based on the proposed increase in the minimum limit on auto insurance in Texas, and has found that the actual rise that will be seen by the average policyholder will be relatively low, at approximately 6 percent more than what is currently being paid.
The site conducted their analysis on 144 different quotes and has discovered that though many people were opposed to the increases in the auto insurance minimums in the state in 2011 because of concerns about cost, the actual increase in expense to the premiums may actually be quite minimal.
The website examined a sample of various car insurance quotes in the state, based on the profile of a male driver who is single, who drives a 2007 Ford F150, who lives in Austin, and who drives to work. There were quotes performed for this profile with a spotless driving record as well as with a single at-fault accident. The rates quoted were approximate as there was a wide range of different ages used for the quotes, from 25 to 65 years old.
The site obtained quotes for liability coverage in three different scenarios:
• $85,000 total (the current minimum in the state)
• $150,000 total
• $400,000 total
Among the more notable findings were the following:
• An increase in the minimum policy limit from $85,000 to $150,000 would lead to a 5.9 percent average increase in premiums.
• An increase in the minimum policy limit from $85,000 to $400,000 would lead to an 18 percent average increase in premiums.
