Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Trust us when we tell you you’re not alone. Insurance companies such as GEICO and Progressive all claim big savings, bombarding you with ads and consumers find it hard to ignore the flying pigs and cute green geckos and take the time to shop coverage around.
It’s smart to compare prices on a regular basis since rates are usually higher with each renewal. Just because you had the lowest rates for 500 insurance on your last policy there is a good chance you can find better rates now. You can find a lot of misleading information regarding auto insurance on the web, but I’m going to show you some tested techniques to quit paying high auto insurance rates.
Save big with these seven discounts
Companies don’t always list every available discount very clearly, so we researched some of the more common as well as the least known ways to save on auto insurance. If you’re not getting every credit possible, you are throwing money away.
- No Claims – Claim-free drivers can earn big discounts when compared to bad drivers.
- Anti-theft System – Vehicles equipped with anti-theft or alarm systems can help prevent theft and earn discounts up to 10%.
- Homeowners Discount – Simply owning a home may earn you a small savings due to the fact that maintaining a home is proof that your finances are in order.
- Federal Government Employee – Simply working for the federal government could cut as much as 10% off for 500 insurance with select insurance companies.
- Discount for Good Grades – Getting good grades can save 20 to 25%. This discount can apply until age 25.
- Accident Forgiveness – Some insurance companies allow you one accident without raising rates as long as you don’t have any claims for a particular time prior to the accident.
- Early Signing – Some companies give discounts for buying a policy prior to your current policy expiring. This can save 10% or more.
As a disclaimer on discounts, most discount credits are not given the the whole policy. The majority will only reduce the price of certain insurance coverages like collision or personal injury protection. Just because you may think all the discounts add up to a free policy, you won’t be that lucky.
To see a list of insurance companies with discount auto insurance rates in Texas, click here.
Comparison of Auto Insurance in Texas
Most major insurance companies quote insurance quotes on their websites. Getting quotes is pretty easy as you just type in the coverage amounts you desire as requested by the quote form. When complete, their system will order your credit score and driving record and returns pricing information determined by many factors. Quoting online makes it a lot easier to compare rates but the work required to visit many different websites and complete many quote forms can be a bit repetitive. But it is imperative to compare as many rates as possible in order to get better auto insurance pricing.
Quote rates the easy way
The smarter way to compare auto insurance pricing uses one simple form to obtain quotes from more than one company. It’s a real time-saver, eliminates form submissions, and makes price shopping online much more enjoyable. As soon as the form is sent, it gets priced and you are able to buy your choice of the quotes returned. If one or more price quotes are lower than your current rates, it’s easy to complete the application and purchase the new policy. This process takes just a few minutes to complete and you will find out if you’re overpaying now.
To compare pricing, click here to open in new window and fill out the form. If you have coverage now, it’s recommended you duplicate the coverages just like they are on your policy. This way, you will be getting a rate comparison for the exact same coverage.
Don’t assume everyone needs the same coverage
When it comes to choosing the best auto insurance coverage, there isn’t really a one size fits all plan. Everyone’s needs are different and your policy should reflect that. Here are some questions about coverages that could help you determine whether you could use an agent’s help.
- Does my insurance cover my expensive audio equipment?
- What are the financial responsibility laws in Texas?
- Am I covered when driving someone else’s vehicle?
- I don’t drive much so do I pay less?
- Is my nanny covered when driving my vehicle?
- Can I rate high risk drivers on liability-only vehicles?
- What can I do if my company denied a claim?
If it’s difficult to answer those questions but a few of them apply, then you may want to think about talking to an agent. If you want to speak to an agent in your area, simply complete this short form or click here for a list of auto insurance companies in your area. It’s fast, doesn’t cost anything and may give you better protection.
Online quotes with a local Texas insurance agent
A small number of people would prefer to talk to a local agent and that is a personal choice. Professional agents can point out coverage gaps and help file insurance claims. The biggest benefit of getting online price quotes is you may find better rates and still have an agent to talk to.
To make it easy to find an agent, after completing this short form, the quote information is immediately sent to local insurance agents who will battle to get your business. You don’t have to leave your house as quotes are delivered directly to your email.
Picking a company should depend on more than just the price. Some important questions to ask are:
- Who are their largest clients?
- What insurance companies do they recommend if they are an independent agent?
- How are claims handled?
- Does the company allow you to choose your own collision repair facility?
- Are they properly licensed to sell insurance in Texas?
- Is assistance available after office hours?
- If you are a high risk driver, do they have special markets for your coverage?
Two types of Texas auto insurance agents
When looking for a reliable agent, you need to know there are two types of insurance agents that differ in how they can insure your vehicles. Agencies in Texas are either independent or captive. While both can properly insure your vehicles, but it’s worth mentioning how they differ since it can impact the selection process.
Captive Insurance Agents
This type of agents write business for a single company and some examples include Allstate, State Farm and Farmers Insurance. They generally cannot provide prices from multiple companies so they have to upsell other benefits. Captive agencies are very knowledgeable on their products and sales techniques which can be an advantage.
Independent Agencies or Brokers
Independent agencies are not locked into one company but rather can write business with lots of companies and possibly get better coverage at lower prices. To transfer your coverage to a different company, the business is moved internally and you don’t have to find a new agent.
When shopping rates, it’s a good idea to contact several independent insurance agents for the best price selection.
For a complete listing of insurance agents in Texas, visit this page.
Upon getting answers to your satisfaction to these questions in addition to an acceptable price estimate, you have narrowed it down to an auto insurance agent that is a good match to provide auto insurance coverage. But remember, once you purchase a policy you can cancel your coverage for any reason so don’t assume that you are obligated to any specific agency with no way out.
Specific coverage details
Learning about specific coverages of your auto insurance policy can be of help when determining which coverages you need for your vehicles. The terms used in a policy can be difficult to understand and reading a policy is terribly boring. Below you’ll find the usual coverages found on the average auto insurance policy.
Liability coverages – Liability coverage will cover damage or injury you incur to other’s property or people that is your fault. Coverage consists of three different limits, bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. As an example, you may have policy limits of 100/300/100 that means you have a $100,000 limit per person for injuries, a total of $300,000 of bodily injury coverage per accident, and a limit of $100,000 paid for damaged property.
Liability insurance covers claims like repair bills for other people’s vehicles, loss of income and legal defense fees. How much coverage you buy is your choice, but it’s cheap coverage so purchase higher limits if possible. Texas requires minimum liability limits of 30,000/60,000/25,000 but you should consider buying better liability coverage.
Medical payments coverage and PIP – Personal Injury Protection (PIP) and medical payments coverage pay for short-term medical expenses such as rehabilitation expenses, X-ray expenses, chiropractic care, nursing services and EMT expenses. They are used in conjunction with a health insurance plan or if you lack health insurance entirely. It covers not only the driver but also the vehicle occupants and also covers being hit by a car walking across the street. Personal Injury Protection is not available in all states but it provides additional coverages not offered by medical payments coverage
Collision – Collision insurance will pay to fix damage to your 500 resulting from colliding with another vehicle or an object, but not an animal. You have to pay a deductible and then insurance will cover the remainder.
Collision coverage pays for things like colliding with another moving vehicle, hitting a mailbox and scraping a guard rail. Collision is rather expensive coverage, so consider dropping it from older vehicles. Another option is to raise the deductible to bring the cost down.
Comprehensive coverage – This coverage pays for damage OTHER than collision with another vehicle or object. You need to pay your deductible first then the remaining damage will be covered by your comprehensive coverage.
Comprehensive coverage pays for claims like vandalism, theft and damage from getting keyed. The maximum amount you’ll receive from a claim is the actual cash value, so if the vehicle’s value is low it’s probably time to drop comprehensive insurance.
Uninsured/Underinsured Motorist coverage – This provides protection from other drivers when they either are underinsured or have no liability coverage at all. Covered claims include injuries to you and your family as well as your vehicle’s damage.
Since many Texas drivers carry very low liability coverage limits (30/60/25 in Texas), it only takes a small accident to exceed their coverage. That’s why carrying high Uninsured/Underinsured Motorist coverage is important protection for you and your family.
A tidy conclusion
When buying insurance coverage, it’s not a good idea to skimp on coverage in order to save money. There have been many situations where someone sacrificed uninsured motorist or liability limits only to regret that the small savings ended up costing them much more. The aim is to buy the best coverage you can find for the lowest price while not skimping on critical coverages.
You just learned quite a bit of information on how to lower your Fiat 500 insurance rates. It’s most important to understand that the more you quote, the better chance you’ll have of finding lower rates. You may even find the lowest rates come from a small mutual company. Some small companies may have significantly lower rates on certain market segments compared to the large companies like Allstate, GEICO and Progressive.
More resources for learning
Additional detailed information is located at the Texas Department of Insurance website. Visitors are able to read industry bulletins, view a list of available companies, and find disaster information.