Feel like you’re a prisoner to high-priced auto insurance? Trust us when we tell you you’re not alone.
Popular companies such as State Farm, Allstate, GEICO and Progressive promote their brand names with advertising and it is difficult to see through the cute green geckos and mayhem and do the work needed to find the best deal.
It is always a good idea to compare prices occasionally because prices change quite often. Just because you found the best rates a couple years back you will most likely find a better rate today. You’ll find quite a bit of inaccurate information about auto insurance on the internet, so with this article, you’re going to get some good information on how to stop overpaying for insurance.
Cut your premium with these eight discounts
Properly insuring your vehicles can get expensive, but you can get discounts to reduce the price significantly. Some discounts apply automatically at the time you complete a quote, but some must be specially asked for before being credited.
- Payment Method – If paying your policy premium upfront instead of making monthly payments you could save up to 5%.
- Life Insurance Discount – Select insurance companies reward you with better rates if you take out life insurance.
- Multiple Policy Discount – When you combine your home and auto insurance with the same company you may earn 10% to 20% off each policy.
- Resident Student – Kids in college who live away from home and do not have access to a covered vehicle can be insured at a reduced rate.
- Federal Government Employee – Active or retired federal employment can save as much as 8% depending on your company.
- Club Memberships – Participating in a civic or occupational organization may earn a discount when shopping for auto insurance.
- Drive Less and Save – Low mileage vehicles can earn lower rates on the low mileage vehicles.
- Safe Drivers – Drivers who don’t get into accidents may receive a discount up to 45% less than their less cautious counterparts.
A little note about advertised discounts, many deductions do not apply to all coverage premiums. Most only cut the cost of specific coverages such as physical damage coverage or medical payments. Even though it may seem like having all the discounts means you get insurance for free, you won’t be that lucky. Any qualifying discounts will bring down the cost of coverage.
For a list of insurance companies with discount auto insurance rates in Texas, click here to view.
What is the best insurance coverage?
When buying the best auto insurance coverage, there is no cookie cutter policy. Your needs are not the same as everyone else’s so this has to be addressed. For instance, these questions can aid in determining whether your personal situation might need professional guidance.
- Is a new car covered when I drive it off the dealer lot?
- When would I need additional glass coverage?
- Do I have coverage when making deliveries for my home business?
- Why am I required to buy high-risk coverage?
- How much liability do I need to cover my assets?
- Can I get a multi-policy discount for packaging my home and auto coverage?
- Can I still get insurance after a DUI?
- Do I have coverage when pulling a U-Haul trailer?
- Am I covered when driving on a suspended license?
- Is my vehicle covered for smoke damage?
If you’re not sure about those questions but you think they might apply to your situation, you might consider talking to a licensed agent. If you want to speak to an agent in your area, complete this form or you can also visit this page to select a carrier
Specific coverages
Learning about specific coverages of your auto insurance policy aids in choosing the best coverages and proper limits and deductibles. Auto insurance terms can be difficult to understand and coverage can change by endorsement. These are the usual coverages available from auto insurance companies.
Uninsured or underinsured coverage
Your UM/UIM coverage protects you and your vehicle from other drivers when they are uninsured or don’t have enough coverage. It can pay for medical payments for you and your occupants and damage to your vehicle.
Due to the fact that many Texas drivers have only the minimum liability required by law (30/60/25), it only takes a small accident to exceed their coverage. So UM/UIM coverage is important protection for you and your family. Most of the time your uninsured/underinsured motorist coverages are similar to your liability insurance amounts.
Auto liability
Liability insurance will cover injuries or damage you cause to other people or property. This coverage protects you from legal claims by others. It does not cover damage sustained by your vehicle in an accident.
Liability coverage has three limits: per person bodily injury, per accident bodily injury, and a property damage limit. Your policy might show limits of 25/50/25 that translate to $25,000 bodily injury coverage, a total of $50,000 of bodily injury coverage per accident, and property damage coverage for $25,000. Occasionally you may see one number which is a combined single limit which combines the three limits into one amount without having the split limit caps.
Liability coverage pays for claims such as emergency aid, medical services, court costs, medical expenses and loss of income. How much liability should you purchase? That is up to you, but you should buy as much as you can afford. Texas state minimum liability requirements are 30,000/60,000/25,000 but drivers should carry higher limits.
Comprehensive protection
This coverage covers damage that is not covered by collision coverage. You need to pay your deductible first and the remainder of the damage will be paid by comprehensive coverage.
Comprehensive coverage pays for claims such as damage from getting keyed, damage from flooding and hail damage. The maximum payout your auto insurance company will pay is the actual cash value, so if the vehicle is not worth much it’s not worth carrying full coverage.
Collision coverage
Collision insurance pays for damage to your vehicle resulting from colliding with another car or object. You have to pay a deductible then the remaining damage will be paid by your insurance company.
Collision can pay for things like hitting a mailbox, colliding with another moving vehicle, sideswiping another vehicle and crashing into a building. Collision is rather expensive coverage, so consider removing coverage from vehicles that are older. It’s also possible to raise the deductible to save money on collision insurance.
Medical expense coverage
Medical payments and Personal Injury Protection insurance pay for immediate expenses such as doctor visits, prosthetic devices, EMT expenses, chiropractic care and surgery. The coverages can be utilized in addition to your health insurance program or if there is no health insurance coverage. It covers you and your occupants and will also cover any family member struck as a pedestrian. Personal Injury Protection is not universally available but can be used in place of medical payments coverage
More information can be found on the website for the Texas Department of Insurance located here. Texas consumers can learn about insurance regulations, file complaints about an insurance agent or broker, discover disciplinary actions, and get help finding coverage.
And the best car insurance company is…
As you restructure your insurance plan, don’t be tempted to sacrifice coverage to reduce premiums. Too many times, someone dropped physical damage coverage only to find out they didn’t have enough coverage. The proper strategy is to purchase a proper amount of coverage for the lowest price while still protecting your assets.
In this article, we covered many ideas to lower your auto insurance rates. The most important thing to understand is the more times you quote, the higher your chance of finding lower rates. You may be surprised to find that the lowest priced auto insurance comes from a small local company. They often have lower prices on specific markets than the large multi-state companies such as GEICO and State Farm.
Cheaper auto insurance is available on the web as well as from independent agents in Coppell, and you need to comparison shop both in order to have the best chance of saving money. There are still a few companies who don’t offer you the ability to get quotes online and most of the time these small, regional companies sell through independent agents.