Expensive auto insurance can overdraw your savings account and make it impossible to make ends meet. Comparing price quotes is free, only takes a few minutes, and is a good way to make sure you’re not throwing money away.
You have multiple Texas car insurance companies to purchase coverage from and even though it’s nice to be able to choose, it can be more challenging to find the lowest rates. And prices can even vary depending on your location, so the cheapest auto insurance in Houston or Dallas may not be the best deal in Abilene or Austin.
Finding affordable coverage is easy if you know what you’re doing. In a nutshell, everyone who carries auto insurance will most likely be able to save money, but Texas drivers must understand the way insurance companies price online insurance and apply this information to your search.
Low Cost Texas Auto Insurance
Comparing auto insurance rates is a ton of work if you don’t understand the best way to get rate quotes. You can waste hours talking to local insurance agents in your area, or you can stay home and use online quotes for quick rates.
All the larger companies enroll in a system that enables customers to enter their policy data once, and each company can give them a price. This system prevents you from having to do multiple quotation requests to each individual auto insurance company.
To participate in this free quote system, click here to open in new window.
The only drawback to getting quotes like this is buyers cannot specifically choose the companies to receive prices from. If you would rather choose specific providers to compare we have a page of the cheapest auto insurance companies in Texas. Click here to view list.
Whichever way you use, make absolute certain that you use identical coverage information for each comparison quote. If you compare different liability limits then you won’t be able to determine the lowest rate. Having just a slight variation in insurance coverages may cause a big price difference. And when quoting auto insurance, remember that more quotes provides better odds of getting the best offered rates.
Don’t overlook these discounts
Car insurance is not cheap, but there could be available discounts to reduce the price significantly. A few discounts will automatically apply when you purchase, but less common discounts must be asked for prior to receiving the credit. Always ask your agent or company about possible discounts that you may qualify for.
- Senior Discount – If you’re over the age of 55, you may be able to get better auto insurance rates.
- Good Student Discount – This discount can get you a discount of up to 25%. This discount can apply well after school through age 25.
- Drivers Education – Cut your cost by having your teen driver enroll in driver’s education if it’s offered in school.
- Anti-theft Discount – Vehicles equipped with anti-theft or alarm systems prevent vehicle theft and therefore earn up to a 10% discount.
- Accident Waiver – Certain companies will allow you to have one accident before hitting you with a surcharge so long as you haven’t had any claims prior to the accident.
- Paperless Signup – Certain companies give back up to $50 for buying a policy and signing up over the internet.
- Discounts for Safe Drivers – Safe drivers may save up to 50% more than less cautious drivers.
As a disclaimer on discounts, some of the credits will not apply to the overall cost of the policy. Most cut the price of certain insurance coverages like medical payments or collision. So despite the fact that it appears you would end up receiving a 100% discount, auto insurance companies aren’t that generous. But all discounts will bring down your overall premium however.
Is my situation unique?
When buying the right insurance coverage for your personal vehicles, there isn’t really a “best” method to buy coverage. Every situation is different so your insurance needs to address that. For example, these questions may help you determine if your insurance needs may require special attention.
- How high should my uninsured/underinsured coverage be in Texas?
- Is rental equipment covered for theft or damage?
- Does my personal policy cover me when driving my company car?
- Does my liability insurance cover pulling a trailer or camper?
- Do I pay less if my vehicle is kept in my garage?
- Who is covered by my policy?
- Should I put collision coverage on all my vehicles?
If you don’t know the answers to these questions but you know they apply to you, you may need to chat with a licensed insurance agent. If you want to speak to an agent in your area, take a second and complete this form.
The auto insurance bait and switch
Allstate, GEICO and Progressive continually stream ads on TV and radio that are hard to ignore. All the companies make the same claim that you’ll save big after switching to their company. How does each company say the same thing? This is how they do it.
All companies have a preferred profile for the driver that makes them money. For example, a profitable customer might be profiled as between 30 and 50, lives in a nice Dallas suburb, insures multiple vehicles, and has a high credit rating. Any driver who matches those parameters gets the lowest rates and most likely will save when switching.
Potential customers who don’t qualify for these standards must pay a more expensive rate which leads to business not being written. Company advertisements say “drivers who switch” not “people who quote” save that much. This is how companies can claim big savings.
This illustrates why it’s extremely important to get as many comparisons as possible. You cannot predict which insurance companies will provide you with the cheapest rates.
The best insurance company isn’t always the cheapest
When buying insurance coverage, do not reduce needed coverages to save money. Too many times, drivers have reduced comprehensive coverage or liability limits only to regret that they should have had better coverage. The ultimate goal is to purchase plenty of coverage for the lowest price while not skimping on critical coverages.
Cheap auto insurance can be found on the web and also from your neighborhood Texas agents, so compare prices from both so you have a total pricing picture. Local independent agents can write coverage with regional insurance providers who may not provide online price quotes.
We just showed you a lot of techniques to shop for auto insurance online. The most important thing to understand is the more rate quotes you have, the better your chances of lowering your rates. Drivers may discover the best prices are with some of the lesser-known companies. These smaller insurers may have significantly lower rates on certain market segments than their larger competitors like Progressive and GEICO.