Are you tired of not being able to afford to buy car insurance? You are in the same boat as many other drivers in Texas. Drivers have so many auto insurance companies to choose from, and even though it’s nice to be able to choose, having more insurers makes it harder to get the best deal.
Are you getting all your discounts?
Companies that sell car insurance don’t always publicize all available discounts very clearly, so here is a list some of the more common and also the lesser-known auto insurance savings. If you’re not getting every credit you deserve, you are paying more than you should be.
- Life Insurance – Larger companies have better rates if you take out life insurance from them.
- Payment Discounts – By paying your policy upfront instead of paying each month you may reduce your total bill.
- Passive Restraints – Vehicles equipped with air bags or motorized seat belts may earn rate discounts of more than 20%.
- Federal Government Employee – Employees or retirees of the government can earn a discount up to 10% with a few auto insurance companies.
- Drive Less and Save – Fewer annual miles could qualify for better rates on cars that stay parked.
- Memberships – Belonging to a qualifying organization is a good way to get lower rates on your policy.
- Student in College – Youth drivers who live away from home and do not have a car may be able to be covered for less.
As a disclaimer on discounts, most of the big mark downs will not be given the the whole policy. A few only apply to the price of certain insurance coverages like liability, collision or medical payments. Just because it seems like you would end up receiving a 100% discount, auto insurance companies aren’t that generous.
To choose insurers with discount auto insurance rates in Mesquite, click here to view.
Tailor your coverage to you
When buying proper insurance coverage for your personal vehicles, there really is no perfect coverage plan. Everyone’s needs are different so this has to be addressed. For example, these questions might point out whether you would benefit from an agent’s advice.
- When should I remove comp and collision on my vehicle?
- Why am I required to buy high-risk coverage?
- Why is insurance for a teen driver so high in Mesquite?
- Who is covered by my policy?
- How high should my uninsured/underinsured coverage be in Texas?
- Do I need higher deductibles?
- Do I need PIP coverage since I have good health insurance?
- How much liability coverage do I need in Texas?
- Is my teen driver covered when they drive my company car?
If you’re not sure about those questions, then you may want to think about talking to an agent. If you want to speak to an agent in your area, complete this 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.
Is there truth in advertising?
Texas consumers constantly see and hear ads for car insurance savings by companies like 21st Century, Allstate and State Farm. All the companies make the same claim that you can save after switching to them.
How does each company make almost identical claims? This is how they do it.
Different companies are able to cherry pick for the type of driver that is profitable for them. For instance, a preferred risk could be between 30 and 50, has no prior claims, and has a short commute. Any driver who meets those qualifications will get the preferred rates and is almost guaranteed to pay quite a bit less when switching companies.
Drivers who don’t measure up to the requirements will have to pay more money which usually ends up with the driver buying from a lower-cost company. Company advertisements say “drivers who switch” not “everyone that quotes” save that kind of money. That’s the way companies can advertise the way they do. Because of the profiling, drivers should get as many quotes as possible. It’s impossible to know the company that will provide you with the cheapest rates.
More detailed Texas auto insurance information can be found at the Texas Department of Insurance website. Visitors are able to find a variety of consumer forms, read industry bulletins, read state legal mandates and laws, and view a list of available companies.
Additional helpful sites include BankRate.com’s Car Insurance: When not to Skimp and this page where you can research Mesquite insurance agents.
Auto insurance coverage options
Having a good grasp of your policy can be of help when determining appropriate coverage and the correct deductibles and limits. The coverage terms in a policy can be ambiguous and reading a policy is terribly boring. Shown next are typical coverage types found on most auto insurance policies.
Coverage for medical expenses
Personal Injury Protection (PIP) and medical payments coverage kick in for expenses for ambulance fees, dental work, funeral costs, surgery and X-ray expenses. They are used to fill the gap from your health insurance policy or if you are not covered by health insurance. Coverage applies to not only the driver but also the vehicle occupants and also covers being hit by a car walking across the street. PIP coverage is not an option in every state but it provides additional coverages not offered by medical payments coverage
Comprehensive auto insurance
Comprehensive insurance pays for damage OTHER than collision with another vehicle or object. A deductible will apply then the remaining damage will be covered by your comprehensive coverage.
Comprehensive can pay for things such as hail damage, damage from getting keyed, damage from a tornado or hurricane and theft. The most you can receive from a comprehensive claim is the market value of your vehicle, so if your deductible is as high as the vehicle’s value it’s probably time to drop comprehensive insurance.
Collision protection
This pays for damage to your vehicle resulting from a collision with another car or object. You have to pay a deductible then your collision coverage will kick in.
Collision can pay for claims such as sideswiping another vehicle, colliding with another moving vehicle, scraping a guard rail, hitting a parking meter and crashing into a ditch. Collision coverage makes up a good portion of your premium, so consider dropping it from older vehicles. It’s also possible to raise the deductible to bring the cost down.
Coverage for uninsured or underinsured drivers
Uninsured or Underinsured Motorist coverage protects you and your vehicle’s occupants when other motorists are uninsured or don’t have enough coverage. It can pay for medical payments for you and your occupants and damage to your vehicle.
Because many people only carry the minimum required liability limits (which is 30/60/25), it doesn’t take a major accident to exceed their coverage limits. So UM/UIM coverage is a good idea.
Liability car insurance
This coverage protects you from damages or injuries you inflict on a person or their property. Liability coverage has three limits: bodily injury for each person, bodily injury for the entire accident, and a limit for property damage. Your policy might show values of 50/100/50 that translate to a $50,000 limit per person for injuries, $100,000 for the entire accident, and $50,000 of coverage for damaged propery.
Liability coverage pays for things such as bail bonds, repair bills for other people’s vehicles and loss of income. The amount of liability coverage you purchase is your choice, but you should buy higher limits if possible. Texas state minimum liability requirements are 30,000/60,000/25,000 but drivers should carry more liability than the minimum.
The best insurance company isn’t always the cheapest
When shopping online for auto insurance, don’t be tempted to skimp on critical coverages to save a buck or two. In many instances, an insured cut physical damage coverage to discover at claim time that saving that couple of dollars actually costed them tens of thousands. The aim is to purchase a proper amount of coverage at the best price while not skimping on critical coverages.
We just showed you many tips how you can compare auto insurance prices online. The key concept to understand is the more times you quote, the better likelihood of reducing your rate. You may be surprised to find that the biggest savings come from a company that doesn’t do a lot of advertising. Some small companies may have significantly lower rates on certain market segments compared to the large companies like State Farm or Progressive.