Sick and tired of robbing Peter to pay Paul each month for car insurance? You are no different than millions of other consumers. Consumers have many auto insurance companies to insure vehicles with, and although it’s nice to have a selection, it can be more difficult to find the lowest cost provider.
Smart consumers take time to compare prices once or twice a year because rates are variable and change quite frequently. Even if you think you had the best rates six months ago you will most likely find a better rate today. So ignore everything you know about auto insurance because you’re about to learn the best way to find better rates and still maintain coverage.
Many Things Influence your Rates
Smart consumers have a good feel for the factors that help determine the rates you pay for auto insurance. Having a good understanding of what influences your rates helps enable you to make changes that can help you get lower auto insurance prices.
- Males pay more for insurance – Statistics have proven that men are more aggressive behind the wheel. Now that doesn’t mean women are better drivers. Women and men tend to get into accidents at a similar rate, but the male of the species tend to have more serious accidents. Men also tend to get more serious tickets such as DWI and reckless driving.
- Your credit rating is important – A driver’s credit score is a important factor in determining what you pay for auto insurance. Drivers with high credit scores tend to file fewer claims and have better driving records than drivers with poor credit. So if your credit history is low, you could pay less to insure your by improving your credit score.
- Little extras can really add up – There are quite a few extra coverages that you can buy on your auto insurance policy. Insurance for personal injury protection, towing coverage and term life insurance may be wasting your money. These coverages may sound good when talking to your agent, but if they’re wasting money eliminate the coverages to reduce your premium.
- The more you drive the more you pay – The more you drive in a year the more you’ll pay to insure your vehicle. Most companies apply a rate based on how the vehicle is used. Cars left parked in the garage get more affordable rates compared to those used for work or business. Make sure your auto insurance policy is showing the correct driver usage.
- Cautious drivers pay less – Drivers who don’t get tickets get better rates than their less careful counterparts. Even a single ticket can bump up the cost twenty percent or more. Drivers who have dangerous citations like DUI or reckless driving may need to file a SR-22 to the state department of motor vehicles in order to prevent a license revocation.
- Lower rates with optional equipment – Choosing a vehicle with a theft deterrent system can help bring down rates. Anti-theft features such as LoJack tracking devices, vehicle tamper alarm systems or GM’s OnStar system can thwart your vehicle from being stolen.
- A lapse in coverage is a bad thing – Driving without insurance is a misdemeanor and your next policy will cost more because you let your coverage have a gap. And not only will insurance be more expensive, but being ticketed for driving with no insurance might get you a license revocation or jail time.Then you may be required to prove you have insurance by filing a SR-22 with the Texas DMV.
- Performance level impacts rates – The type of vehicle you are insuring makes a huge difference in determining your rates. The lowest rates are generally reserved for economy passenger cars, but other factors influence the final cost greatly.
Verify you’re getting all your discounts
Auto insurance companies do not advertise all available discounts very clearly, so here is a list some of the more common and also the lesser-known discounts you could be receiving. If you’re not getting every credit available, you are throwing money away.
- Multiple Cars – Buying coverage for all your vehicles on the same auto insurance policy may reduce the rate for each vehicle.
- Student in College – Children who live away from home and don’t have a car may qualify for this discount.
- Memberships – Affiliation with a qualifying organization could qualify you for a break on auto insurance.
- Lower Rates for Military – Having a family member in the military could mean lower rates.
- Discount for Life Insurance – Companies who offer life insurance give better rates if you take out life insurance from them.
Drivers should understand that some of the credits will not apply to all coverage premiums. Most only reduce specific coverage prices like liability and collision coverage. Even though it may seem like adding up those discounts means a free policy, companies wouldn’t make money that way.
To see a list of insurers offering auto insurance discounts in Cedar Park, click here.
Is there deception in advertising?
Consumers in Texas constantly see and hear ads that promise big savings by State Farm, GEICO and Progressive. They all say the same thing that you can save if you change to their company.
How can each company claim to save you money?
All companies have a preferred profile for the type of customer they prefer to insure. An example of a driver they prefer might be a mature driver, has no tickets, and drives newer vehicles. A driver who fits that profile receives the best rates and most likely will pay quite a bit less when switching companies.
Potential insureds who don’t meet the requirements will be charged a higher premium and this can result in the customer not buying. Company advertisements say “drivers who switch” not “everybody who quotes” save that kind of money. That’s why insurance companies can state the savings. That is why it is so important to compare many company’s rates. It’s impossible to know the company that will provide you with the cheapest rates.
When should I talk to an agent?
When choosing proper insurance coverage, there really is not a perfect coverage plan. Everyone’s needs are different and a cookie cutter policy won’t apply. Here are some questions about coverages that may help highlight if you will benefit from professional help.
- Does my policy cover my teen driver if they drive my company car?
- Do I need to file an SR-22 for a DUI in Texas?
- When would I need rental car insurance?
- Am I covered when pulling a rental trailer?
- Why am I required to buy high-risk coverage?
- Am I covered when driving in Canada or Mexico?
If you can’t answer these questions but a few of them apply, then you may want to think about talking to an insurance agent. If you don’t have a local agent, simply complete this short form or go to this page to view a list of companies. It only takes a few minutes and you can get the answers you need.
More tips and info about auto insurance can be read at the Texas Department of Insurance website. Texas drivers can report car insurance fraud, view a list of available companies, read enforcement actions against agents and companies, and file complaints about a company.
Compare but don’t skimp
When buying insurance coverage, it’s a bad idea to buy lower coverage limits just to save a few bucks. In too many instances, someone dropped collision coverage only to discover later that the few dollars in savings costed them thousands. The aim is to purchase plenty of coverage at an affordable rate while still protecting your assets.
You just learned a lot of techniques to get a better price on auto insurance. The most important thing to understand is the more companies you get rates for, the higher the chance of saving money. Consumers could even find that the lowest premiums are with some of the lesser-known companies. Smaller companies may only write in your state and offer lower rates as compared to the big name companies such as State Farm or Progressive.
The cheapest auto insurance can be bought both online and with local Cedar Park insurance agents, and you should be comparing both to get a complete price analysis. Some insurance providers do not offer you the ability to get quotes online and usually these small, regional companies provide coverage only through local independent agents.