Auto insurance prices seem to almost always increase every time it renews, yet most consumers just pay the higher price without knowing why the price went up. Certain Texas auto insurance companies charge inflated prices, so if you don’t do a rate comparison every six months, you could be putting money down the drain every time you pay your bill.
The are a couple different ways to get rate comparisons from local Austin auto insurance companies. The best method to find competitive insurance rates is to perform an online rate comparison. This can be done in a couple of different ways.
- The recommended way to find the lowest comparison rates is a comparison rater form (click to open form in new window). This easy form eliminates the need for boring form submissions for each company you want a rate for. Just one form compares rates from multiple low-cost companies.
- A different way to compare rate quotes is to take the time to go to the website for each individual company and fill out their own quote form. For examples sake, let’s assume you want rates from Liberty Mutual, Esurance and Allstate. To get each rate you have to go to every website and enter your policy data, which is why most consumers use the first method.
For a list of links to companies insuring cars in Austin, click here.
However you get your quotes, make sure you use identical coverage limits and deductibles for every quote you compare. If you compare different liability limits you can’t possibly determine the lowest rate in Austin. Quoting even small variations in limits may cause a big price difference. And when comparing auto insurance rates, know that getting more free quotes provides better odds of getting the best rates.
Get Cheaper Rates by Understanding Pricing
An important part of buying insurance is that you know the different types of things that play a part in calculating the rates you pay for auto insurance. Knowing what influences your rates empowers consumers to make smart changes that may reward you with much lower annual insurance costs.
Shown below are a few of the factors used by your company to calculate rates.
Multiple policies with one company can save – Some insurers will give a discount to insureds who have multiple policies with them in the form of a multi-policy discount. Even with this discount, it’s in your best interest to compare rates to verify if the discount is saving money.
Equipment add-ons that lower auto insurance rates – Purchasing a vehicle with anti-theft technology or alarm system can get you a discount on your auto insurance. Theft prevention devices such as LoJack tracking devices, vehicle tamper alarm systems or GM’s OnStar system all aid in stopping car theft.
Never allow your policy to lapse – Not having insurance is against the law and auto insurance companies will penalize you for letting your coverage lapse. Not only will rates go up, but being ticketed for driving with no insurance may earn you a revoked license or a big fine.Then you may be required to prove you have insurance by filing a SR-22 with the Texas DMV.
Safer occupants lowers premiums – Vehicles with high crash test scores can get you lower premiums. These vehicles protect occupants better and any reduction in injury severity translates into savings for insurance companies and thus lower rates.
Younger drivers pay higher rates – Youthful drivers in Texas have a tendency to be more careless when driving so they pay higher auto insurance rates. Adding a youthful driver onto a policy can be very expensive. More mature drivers are viewed as being more responsible, statistically cause fewer accidents and are safer drivers.
Add-on coverages can add up – There are quite a few add-on coverages that you can buy when buying auto insurance. Coverages for vanishing deductibles, towing coverage and additional equipment coverage may be costing you every month. These coverages may sound good when talking to your agent, but now you might not need them so eliminate them to save money.
Your auto insurance rates can be influenced by your job – Jobs such as lawyers, business owners and financial analysts have higher average rates in part from high stress and long work days. Conversely, occupations like pilots, engineers and retirees get better rates.
Cut your premium with these eight discounts
Austin car insurance is not cheap, but you may find discounts that many people don’t even know exist. A few discounts will automatically apply at the time of purchase, but lesser-known reductions have to be specifically requested prior to getting the savings.
- Save with a New Car – Insuring a new car can be considerably cheaper because new vehicles have to meet stringent safety requirements.
- College Student – Kids in college who attend school more than 100 miles from home and don’t have a car can receive lower rates.
- Drive Less and Save – Low mileage vehicles can earn discounted rates on garaged vehicles.
- Lower Rates for Military – Being on active duty in the military could be rewarded with lower premiums.
- Pay Now and Pay Less – If you pay your entire premium ahead of time instead of paying each month you could save up to 5%.
- Passive Restraints and Air Bags – Factory air bags or automatic seat belts may earn rate discounts up to 30%.
- Life Insurance – Some companies give a discount if you purchase life insurance.
- Memberships – Being a member of a qualifying organization is a good way to get lower rates on auto insurance.
It’s important to note that most of the big mark downs will not be given to your bottom line cost. Most cut the price of certain insurance coverages like comprehensive or collision. So when it seems like you would end up receiving a 100% discount, you won’t be that lucky. But any discount will bring down the amount you have to pay.
What is the best insurance coverage?
When choosing adequate coverage for your personal vehicles, there isn’t really a perfect coverage plan. Your needs are not the same as everyone else’s and a cookie cutter policy won’t apply. For example, these questions may help highlight whether your personal situation might need professional guidance.
- Who is covered by my policy?
- Do I really need UM/UIM coverage?
- Are you required to get a high-risk car insurance policy?
- Do I have any recourse if my insurance company denies a claim?
- Is my nanny covered when driving my vehicle?
- Are there companies who specialize in insuring high-risk drivers?
If it’s difficult to answer those questions but a few of them apply, you may need to chat with an insurance agent. To find an agent in your area, complete this form.
Quote more, save more
As you restructure your insurance plan, make sure you don’t sacrifice coverage to reduce premiums. Too many times, an insured cut uninsured motorist or liability limits to discover at claim time that their decision to reduce coverage ended up costing them more. The aim is to buy the best coverage you can find for the lowest price.
Lower priced auto insurance can be found both online as well as from independent agents in Austin, so compare prices from both to have the best rate selection. Independent agents are able to place your coverage with regional insurance providers that don’t always offer the ability to get a quote online.