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Cost of Parked Car Insurance in Texas

Parked insurance is sometimes referred to as comprehensive insurance coverage only. In Texas, the average cost of parked car insurance is in the range of $200-$325 annually.

How much you will pay for parked car insurance in Texas depends on your insurance needs and the current condition of your parked car at the point of insurance. As an optional add-on insurance coverage, the insurer will determine how much you will pay based on:

  • The actual cash value of the insured car

  • The amount of deductible agreed upon

  • Your age and location

The cost of Texas parked car insurance policy is computed based on the actual cash value of your vehicle. This is done by taking into account the replacement cost minus the depreciation. For instance, if your vehicle was valued at $8,000 at the time of purchase, but at the time of an accident it was valued at $5,000. The insurer, in this case, will pay you the actual cash value minus your deductible ($5,000 - ded.). Generally, less valuable vehicles tend to be cheaper to insure than expensive cars.

The next thing that influences how much you pay is the amount of deductible. Whenever a claim is filed, the deductible is “deducted” from the total claim payout. The deductible is the portion of the claim the insured agrees to pay out-of-pocket during every claim. If the insured wants to lower their monthly or annual premiums, they can increase their portion of the risk by raising the deductible. Higher deductibles result in lower premiums but higher risk for the insured. Lower deductible increases the potential financial burden placed on the insurer, which results in higher premiums and lower risk exposure for the insured.

Several other factors influence how much you pay as your parked car insurance premium. If the area is prone to natural disasters like flooding, earthquake, or hail, your insurer, credit score, and other personal factors - you will likely pay a higher premium.

How Much Parked Coverage Do I Need?

The amount of coverage you need depends on how long your car will be parked, the location where your car will be parked, and the most recent state of your car. For example, if you just purchased a new car but cannot use it for a long time, you will need to get as much coverage as possible to protect it from covered perils. Likewise, if your location sees higher crime levels, you may need to get theft coverage to insure your car against any criminal activities.

What Raises and Lowers your Parked Car Insurance?

What usually raises parked car insurance includes the following:

  • The type of vehicle the insured drives

  • Area prone to severe weather

  • Where the insured lives and parks their vehicle

  • Chosen limits of coverage and deductible amount

You can take the following steps to lower your parked car insurance premium:

  • Change your locality to a safer location if your vehicle is susceptible to theft or vandalism in the current location

  • Shop around for multiple quotes from different insurance providers

  • Raise your deductible to lower the premium cost

Speak with a knowledgeable state-licensed insurance agent, who can help you assess your needs and identify the most optimalWEParked insurance coverage to suit your budget.