Having to pay for overpriced auto insurance can overdraw your checking account, especially in this economy. Comparison shopping is a smart way to lower your monthly bill.
Multiple auto insurance companies compete for your insurance dollar, and it can be difficult to compare rates to discover the definitive best price available.
Consumers should take time to take a look at other company’s rates yearly because rates are rarely the same from one policy term to another. Despite the fact that you may have had the lowest rates on your last policy you can probably find a better price now. Starting right now, block out anything you think you know about auto insurance because I’m going to teach you the right way to reduce your cost while increasing coverage.
How to Compare Midland Auto Insurance Costs
Effectively comparing auto insurance prices can be challenging if you don’t utilize the most efficient way. You could spend the better part of a day driving to insurance agencies in Midland, or you could use online quoting to get pricing more quickly.
Many popular insurance companies participate in an industry program where prospective buyers complete one form, and at least one company returns a rated price based on that data. This eliminates the need for form submissions for each company you want a rate for.
To fill out one form to compare multiple rates now click here (opens in new window).
The only drawback to pricing coverage this way is you cannot specify the providers to get quotes from. So if you want to choose individual companies to compare prices, we have assembled a list of low cost auto insurance companies in Texas. View list of Texas insurance companies.
Which method you use is up to you, but ensure you’re using identical coverages for each price quote. If your comparisons have different limits and deductibles on each one then you won’t be able to determine which rate is truly the best in Midland. Having just a slight variation in insurance coverages can make a big difference in price. It’s important to know that more quotes gives you a better chance of getting better pricing.
The auto insurance bait and switch
Auto insurance companies such as State Farm, Allstate and GEICO consistently run television and radio advertisements. They all seem to have a common claim that you can save if you change to their company. But how can every company make almost identical claims?
Insurance companies have a preferred profile for the driver they prefer to insure. For example, a driver they prefer could be between the ages of 30 and 50, insures multiple vehicles, and drives newer vehicles. Any driver who matches those parameters will get very good rates and most likely will save when they switch companies.
Potential insureds who don’t qualify for the requirements will have to pay higher premiums and this can result in the driver buying from a lower-cost company. The ads say “customers that switch” not “everyone that quotes” save that kind of money. That’s why insurance companies can claim big savings. Because of the profiling, you absolutely need to get as many comparisons as possible. It is impossible to predict the company that will give you the biggest savings.
Get Cheaper Rates by Understanding Pricing
It’s important that you understand the factors that go into determining the price you pay for auto insurance. Having a good understanding of what influences your rates helps enable you to make changes that may reward you with much lower annual insurance costs.
- Big city or small town – Choosing to live in a small town is a positive aspect when talking about auto insurance. Less people living in that area means a lower chance of having an accident. Drivers in populated Texas areas have more traffic problems and longer commute times. More time commuting means higher likelihood of an accident.
- Theft deterrents lower rates – Driving a car with anti-theft technology or alarm system can get you a discount on your auto insurance. Anti-theft features such as vehicle immobilizer systems, General Motors OnStar and LoJack tracking systems all hinder your vehicle from being stolen.
- Do you qualify for a multi-policy discount? – The majority of insurers provide better rates to customers who consolidate policies with them in the form of a multi-policy discount. Even with this discount, it’s still a good idea to compare other company rates to confirm you are receiving the best rates possible. Consumers may find a better deal by splitting coverages up.
- Rates may be lower depending on your job – Occupations like real estate brokers, business owners and accountants are shown to have higher rates than average attributed to stressful work requirements and lots of time spent at work. On the flip side, occupations such as farmers, athletes and the unemployed pay the least.
- Do you need those extra coverages? – There are a ton of add-on coverages you can purchase on your policy. Insurance for roadside assistance, better glass coverage and additional equipment coverage may be costing you every month. They may seem good when talking to your agent, but now you might not need them so eliminate the coverages to reduce your premium.
Pay less by taking advantage of discounts
Companies that sell car insurance don’t necessarily list all their discounts very well, so we break down some of the more common as well as the least known discounts you could be receiving.
- Seat Belts Save – Using a seat belt and requiring all passengers to use a seat belt can save 10% or more off your medical payments premium.
- Defensive Driver – Successfully completing a course teaching defensive driving skills could possibly earn you a 5% discount if your company offers it.
- New Vehicle Savings – Adding a new car to your policy can save up to 30% because new vehicles have to meet stringent safety requirements.
- Distant Student – Youth drivers living away from home attending college and don’t have a car may qualify for this discount.
- Club Memberships – Being a member of certain professional organizations is a good way to get lower rates on auto insurance.
- Fewer Miles Equal More Savings – Low mileage vehicles could be rewarded with lower rates on the low mileage vehicles.
- Theft Prevention Discount – Cars that have factory anti-theft systems prevent vehicle theft and will save you 10% or more.
- Discount for Good Grades – Performing well in school can be rewarded with saving of up to 25%. Earning this discount can benefit you until age 25.
- Multiple Policy Discount – When you have multiple policies with one insurance company you could get a discount of 10% to 20% off each policy.
- Military Rewards – Having a deployed family member may qualify for rate reductions.
It’s important to note that most of the big mark downs will not be given the the whole policy. Most only reduce the price of certain insurance coverages like comp or med pay. So despite the fact that it appears you could get a free auto insurance policy, companies wouldn’t make money that way.
For a list of companies offering auto insurance discounts in Midland, click here.
Your coverage should be tailored to you
When it comes to choosing adequate coverage, there really is no one size fits all plan. Every insured’s situation is different and a cookie cutter policy won’t apply. Here are some questions about coverages that can help discover if you will benefit from professional help.
- Does medical payments coverage apply to all occupants?
- Am I covered when pulling a rental trailer?
- How much liability do I need to cover my assets?
- How high should my uninsured/underinsured coverage be in Texas?
- Is my teen driver covered when they drive my company car?
- Can I rate high risk drivers on liability-only vehicles?
- Am I covered by my employer’s commercial auto policy when driving my personal car for business?
- When should I not file a claim?
- Is my nanny covered when driving my vehicle?
- How high should my medical payments coverage be?
If you can’t answer these questions, you might consider talking to a licensed insurance agent. If you don’t have a local agent, fill out this quick form or you can go here for a list of companies in your area.
In Summary
We just covered a lot of information how to save on auto insurance. It’s most important to understand that the more you quote, the better chance you’ll have of finding lower rates. You may be surprised to find that the lowest premiums are with a company that doesn’t do a lot of advertising. These companies may cover specific market segments cheaper compared to the large companies like Progressive and GEICO.
When trying to cut insurance costs, it’s not a good idea to reduce needed coverages to save money. There are too many instances where someone dropped liability limits or collision coverage and found out when filing a claim that they should have had better coverage. Your aim should be to buy the best coverage you can find at the best price while still protecting your assets.
More Texas auto insurance resources
Additional detailed information can be read at the Texas Department of Insurance website. Texas drivers can read enforcement actions against agents and companies, view a list of available companies, download brochures, and read industry bulletins.