Marion Car Insurance
Marion, Texas was originally a camp for railroad workers that turned into a small town complete with businesses, a school, and a church.
Today, this small settlement that was home to only a modest 250 residents has a population of 1095. While that's substantial growth, Marion is one of the smallest cities that exists in Texas today.
Marion might be small in size but it is big in presence. As a historic commercial conduit for railway transport, Marion is given a lot of credit for economic development in the Lone Star State.
If you live in this wonderful place, you're required to follow the laws passed in Guadalupe County and Texas state law as well. This includes the auto insurance law mandated in TX.
Read this article to find out everything you need to know about Texas auto insurance, and then use our FREE tool above to find the best car insurance rates in Marion today!
Is auto insurance required in Marion, Texas?
When Marion became a city in the 1800's, it was the Federal government's job to set insurance laws and to enforce these laws.
When the government realizes how difficult it would be to regulate insurance nationwide, the responsibility was passed on to state officials. That's why every state has different requirements and different insurance systems.
Since insurance rules are written under state vehicle code, any resident in the state with a registered vehicle is required to comply with the law. This includes residents in large metropolitan cities like Dallas and Houston and smaller cities like Marion.
Since the law says that auto insurance is mandatory in Texas, you must have insurance in Marion.
Is Texas a no-fault state or a tort state?
There are two types of states in the country-- no fault states and tort states. Texas operates under a tort auto insurance system where fault is used to determine who pays for damages.
In a no-fault state, vehicle owners are required to buy their own protection on their policy that pays for their medical bills regardless of who's to blame for the loss.
Since Texas is a tort state you're required to purchase third-party coverage options that'll pay to treat drivers and passengers that you injure in an at-fault collision. It'll also help you pay to repair property that you damage without any deductible.
These require coverages are called Bodily Injury and Property Damage.
How much auto insurance is required?
The purpose of auto insurance requirements is to make it so that a majority of drivers have the ability to pay for damages that they cause in their vehicles.
While there's no guaranteeing that the requirements will be enough, they are a start and provide some consumer protection for every driver that complies.
Here's a breakdown of the minimum limit requirements:
- Bodily Injury: $25,000 per person, $50,000 per accident
- Property Damage: $15,000 per occurrence
- Limits are written 25/50/15
Why is no-fault coverage offered in Texas?
One thing that can be a bit perplexing is that you have the option to buy no-fault coverage in a state that doesn't have a no-fault system.
In Texas, all consumers are free to buy optional first-party Personal Injury Protection (PIP) benefits at a cost.
PIP is a lot like Medical Payments, which is traditionally offered in tort states, but there are a few differences. Instead of only paying for your immediate medical bills that you incur after an accident, it'll pay for medical costs, lost income and rehabilitation costs.
Texas companies can't offer you less than a $2500 optional PIP benefit.
Is physical damage coverage required by law?
Physical damage coverage is very different than property damage coverage.
Instead of paying for someone else's property, your physical damage coverage will pay for your own vehicle repairs. This type of first-party coverage isn't required under state law.
Even though it's not a legal requirement, it's something you must have if you have a loan.
Should you buy physical damage coverage on a vehicle that is paid off?
Comprehensive and collision can both save the day when you have an eligible claim to file.
While they're two important components that make a full coverage plan whole, it can be expensive to carry both when you have a luxury car or when you're a high risk to the insurer.
The best thing to do is to look at the costs and the value of your car to build a reasonable policy with the right amount of coverage. There's no rule of thumb that'll work in every situation, but one to consider is the 10% rule. Under this rule, you should keep full coverage if premiums are 10% or less of your car's value.
Can you buy comprehensive without collision?
Comprehensive coverage is often called "Other Than Collision" or OTC because it covers a long list of risks that don't involve crashing into an object.
If collision insurance is too expensive, you should still consider buying OTC on your car to help you pay non-fault claims that are unavoidable.
A comprehensive loss can happen anywhere, but some areas are more susceptible than others.
It can help to look at crime rates in Marion to see if your car is vulnerable to vandals and thieves that have set the trends in the past. It's nice to know that only 48 vehicle thefts and 262 burglaries have been reported, which means that theft and vandalism aren't huge risks.
Are there a lot of uninsured drivers in Marion?
No one wants to get into an accident, but getting into an accident with an uninsured driver is a worst case scenario.
Out of all of the drivers in Texas, 20% of them don't have insurance. While there's not exact data on the number of uninsured drivers in Marion, if you use the statistics it would mean that about 100 drivers don't have coverage based on the number of adults in the city.
The exposure to loss isn't huge, but it's still present.
How can you protect yourself against these uninsured residents?
If you want to protect yourself against your irresponsible neighbors and people passing through Marion who might be uninsured, you have the option to buy Uninsured Motorist Protection.
This coverage, which often goes by UM, isn't required but it's one that's worth the extra cost.
All Texas insurers that are free to sell personal insurance to applicants must offer you the option to buy uninsured and underinsured motorist coverage.
It will replace an uninsured driver's liability coverage to provide you with benefits that pay for your medical treatment and lost wages. To reject coverage, you'll need to sign a rejection form.
What happens if you choose to drive without insurance?
Driving without auto insurance is a crime. If you're caught driving or can't verify your coverage with the Department of Motor Vehicles, there's no doubt that you'll be penalized.
Since uninsured drivers are a problem all around Texas, the penalties are stiffer than you might think. Here are some of those penalties:
- A fine of $175 to $350 for first offense
- A surcharge on license fee of $250 for a period of 3 years
- A fine of $350 to $1000 for second offense
- License and registration suspension
- Impound of your vehicle for up to 180 days
- A fee of up to $15 per day when vehicle is impounded
How much does insurance cost in Texas?
If you're concerned with the cost of auto insurance, it's a good idea to look at when the average expenditures are for insurance and how they compare to the national average.
In the state of Texas as a whole, the average person pays$895.44 per year for a comprehensive policy. Compared to other states, Texas is the 13th most expensive.
How to keep your premiums for coverage low?
Even though the average premiums are high in comparison to premiums in other states, there are ways to keep premiums down and manageable. Insurance companies rate you based on how likely you are to file a claim, but there are ways to reduce your likelihood.
Here are some of the ways to keep the rates down no matter who you buy from:
- Raise your physical damage deductibles
- Carpool or take the bus to keep your commute miles down
- Try to manage your annual mileage for a low-rated mileage band
- Students should get good grades to receive good student discounts
- Install an anti-theft device in your car
- Take driver training to get a 3 credit
If you'd like to see how much you'll pay for insurance in Marion, you need to get personalized insurance quotes. To do this, use an online insurance quote comparison tool that connects you with several insurance carriers in an instant. After you do the comparison, you can choose a policy.