Are you a victim of overpriced car insurance? Trust us, you are not the only one feeling buyer’s remorse.
There is such a variety of insurers to choose from, and even though it’s nice to have multiple companies, lots of choices makes it harder to adequately compare rates.
Finding affordable coverage in Cedar Park is not that difficult. If you have car insurance now, you will most likely be able to save some money using these methods. But Texas drivers must comprehend how insurance companies price online insurance and use this information to your advantage.
Discounts are basically free money
Auto insurance companies don’t always list all available discounts very well, so the following is a list of both the well known and also the lesser-known ways to save on car insurance.
- Discount for Life Insurance – Select insurance companies reward you with better rates if you take out life insurance.
- Anti-theft System – Vehicles equipped with anti-theft or alarm systems help deter theft and will save you 10% or more.
- Early Signing – Some companies give discounts for switching policies before your current expiration date. This can save 10% or more.
- Drivers Education – Require your teen driver to successfully complete driver’s ed class if it’s offered in school.
- Seat Belt Usage – Buckling up and requiring all passengers to use a seat belt could cut 10% or more off your PIP or medical payments premium.
Drivers should understand that many deductions do not apply to the overall cost of the policy. Most only cut the cost of specific coverages such as comprehensive or collision. Even though it may seem like you could get a free car insurance policy, companies wouldn’t make money that way.
To see a list of providers offering car insurance discounts in Texas, click here.
Why your price might be higher
Smart consumers have a good feel for some of the elements that play a part in calculating car insurance rates. Knowing what impacts premium levels allows you to make educated decisions that will entitle you to much lower annual insurance costs.
Shown below are some of the items companies use to determine prices.
- Policy add-ons can waste money – There are a lot of extra coverages that you can get tricked into buying on your policy. Things like personal injury protection, accidental death and additional equipment coverage may be costing you every month. They may seem like a good idea at first, but now you might not need them so remove them from your policy.
- Pay less if you’re married – Having a spouse can get you a discount on your policy. It means you’re more mature and responsible and it’s proven that being married results in fewer claims.
- Rural vs Urban Areas – Choosing to live in a small town can be a good thing when insuring your vehicles. City drivers have much more traffic and longer commute times. Less people living in that area means fewer accidents as well as less vandalism and auto theft.
- Younger drivers pay higher rates – Mature drivers are more responsible, statistically cause fewer accidents and receive fewer citations. Youthful drivers tend to be careless and easily distracted in a vehicle and because of this, their car insurance rates are much higher.
- Lower rates with optional equipment – Owning a car that has an advanced theft prevention system can help lower your rates. Anti-theft features like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar can help prevent your car from being stolen.
- More miles equals more premium – Driving more miles in a year the more you will pay for car insurance. Almost all companies rate vehicles determined by how the vehicle is used. Vehicles left parked in the garage can get a lower rate than those used for commuting. Make sure your car insurance coverage properly reflects the proper vehicle usage, because it can save money.
Which insurance is the “right” coverage?
When buying the right insurance coverage for your vehicles, there really is not a perfect coverage plan. Every situation is different so your insurance needs to address that. These are some specific questions might help in determining whether you would benefit from an agent’s advice.
- How much liability coverage do I need in Texas?
- Can I drive in Mexico and have coverage?
- Do I get a pro-rated refund if I cancel my policy early?
- What is covered by UM/UIM coverage?
- Exactly who is provided coverage by my policy?
- Are rental cars covered under my policy?
- Do I have coverage when using my vehicle for my home business?
- Does my car insurance cover rental cars?
- Am I covered by my spouse’s policy after a separation?
- Am I covered when delivering products for my home-based business?
If you’re not sure about those questions but you know they apply to you, then you may want to think about talking to an insurance agent. To find an agent in your area, complete this form or go to this page to view a list of companies.
Can switching companies really save?
GEICO, State Farm and Progressive regularly use television and radio advertisements. All the companies say the same thing about savings if you move to their company. But how can every company make the same claim?
All the different companies have a certain “appetite” for the driver they prefer to insure. For example, a desirable insured might be between the ages of 30 and 50, is a homeowner, and has a high credit rating. Any new insured that hits that “sweet spot” gets the lowest rates and most likely will pay quite a bit less when switching companies.
Potential insureds who don’t meet these standards will be quoted a higher premium which usually ends up with business not being written. The ads state “drivers who switch” not “everyone that quotes” save money. That’s why companies can truthfully state the savings. This emphasizes why you absolutely need to quote coverage with many companies. Because you never know which company will provide you with the cheapest rates.
Additional detailed information can be found at the Texas Department of Insurance website. Texas drivers can read consumer alerts, download brochures, and view a list of available companies.
Cheaper insurance is a realistic goal
The cheapest car insurance can be purchased online and also from your neighborhood Cedar Park agents, so you should compare both in order to have the best chance of saving money. Some companies may not provide the ability to get a quote online and usually these smaller companies provide coverage only through local independent agents.
As you prepare to switch companies, do not buy poor coverage just to save money. There are too many instances where drivers have reduced physical damage coverage to discover at claim time that the few dollars in savings costed them thousands. Your focus should be to find the BEST coverage at the best price, not the least amount of coverage.