Overwhelmed by the dozens of auto insurance choices in Gainesville? You have a lot of company. There are so many companies to choose from that it can quickly become a challenge to find the perfect company for you.
You should take the time to get comparison quotes periodically because insurance rates are usually higher with each renewal. Just because you had the best rates a couple years back you can probably find a lower rate today. So forget all the misinformation about auto insurance because you’re about to learn the best methods to save money, get proper coverage and the best rates.
If you currently have car insurance, you will be able to lower your premiums substantially using this information. Buying the best coverage in Gainesville is quite easy. But Texas car owners need to have an understanding of how companies price online insurance and apply this information to your search.
Lots of discounts mean lots of savings
Car insurance can cost a lot, but discounts can save money and there are some available to help offset the cost. Certain discounts will be applied when you complete an application, but a few need to be specially asked for before being credited.
- Multi-policy Discount – If you have multiple policies with the same company you may save approximately 10% to 15%.
- Pay Upfront and Save – If you pay your entire premium ahead of time instead of monthly or quarterly installments you could save up to 5%.
- Life Insurance – Some companies give better rates if you take out life insurance from them.
- Early Switch Discount – A few companies offer discounts for signing up before your current expiration date. It’s a savings of about 10%.
- Federal Government Employee – Active or retired federal employment could cut as much as 10% off with certain companies.
- Distant Student – Kids in college living away from home attending college and do not have a car can be insured at a reduced rate.
- Seat Belts Save – Requiring all passengers to buckle their seat belts can save 10% or more off your medical payments premium.
- Good Students Pay Less – Getting good grades can save 20 to 25%. The good student discount can last well after school through age 25.
- Memberships – Being a member of a civic or occupational organization is a good way to get lower rates when shopping for auto insurance.
A little note about advertised discounts, most of the big mark downs will not be given to the entire policy premium. Most only apply to the cost of specific coverages such as comprehensive or collision. Even though it may seem like you could get a free auto insurance policy, it just doesn’t work that way. Any amount of discount will bring down your overall premium however.
For a list of insurers who offer auto insurance discounts in Texas, click this link.
Save $403 a year? Really?
Auto insurance providers like State Farm and Allstate consistently run ads on TV and radio. They all make an identical promise about savings if you change your coverage to them. But how can every company say the same thing?
All the different companies have a preferred profile for the driver they prefer to insure. For example, a driver they prefer could be between 30 and 50, has no prior claims, and drives less than 7,500 miles a year. Any new insured that hits that “sweet spot” will get very good rates and as a result will probably pay quite a bit less when switching companies.
Potential insureds who don’t measure up to the requirements must pay more money which leads to the customer not buying. Company advertisements say “customers who switch” not “people who quote” save that kind of money. That’s why companies can advertise the savings.
This illustrates why you absolutely need to get as many quotes as possible. Because you never know the company that will have the lowest rates.
Auto insurance coverage options
Learning about specific coverages of your auto insurance policy can be of help when determining which coverages you need at the best deductibles and correct limits. Auto insurance terms can be ambiguous and reading a policy is terribly boring.
Liability
This coverage protects you from damage or injury you incur to 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. You commonly see values of 25/50/25 which stand for a limit of $25,000 per injured person, $50,000 for the entire accident, and $25,000 of coverage for damaged propery. Occasionally you may see one limit called combined single limit (CSL) that pays claims from the same limit and claims can be made without the split limit restrictions.
Liability can pay for claims like loss of income, emergency aid, medical expenses, medical services and pain and suffering. How much liability should you purchase? That is your choice, but consider buying as large an amount as possible. Texas state law requires minimum liability limits of 30,000/60,000/25,000 but it’s recommended drivers buy more liability than the minimum.
Protection from uninsured/underinsured drivers
Uninsured or Underinsured Motorist coverage protects you and your vehicle when the “other guys” either have no liability insurance or not enough. Covered claims include medical payments for you and your occupants and also any damage incurred to your vehicle.
Because many people have only the minimum liability required by law (which is 30/60/25), it doesn’t take a major accident to exceed their coverage limits. So UM/UIM coverage should not be overlooked. Usually your uninsured/underinsured motorist coverages do not exceed the liability coverage limits.
Collision protection
This coverage pays to fix your vehicle from damage resulting from colliding with a stationary object or other vehicle. You have to pay a deductible then the remaining damage will be paid by your insurance company.
Collision insurance covers things such as damaging your car on a curb, crashing into a building, colliding with another moving vehicle and crashing into a ditch. This coverage can be expensive, so analyze the benefit of dropping coverage from lower value vehicles. You can also raise the deductible in order to get cheaper collision rates.
Medical expense insurance
Coverage for medical payments and/or PIP provide coverage for immediate expenses like surgery, EMT expenses, prosthetic devices, pain medications and hospital visits. The coverages can be used to cover expenses not covered by your health insurance plan or if you lack health insurance entirely. They cover all vehicle occupants and will also cover getting struck while a pedestrian. PIP is not universally available but can be used in place of medical payments coverage
Comprehensive (Other than Collision)
Comprehensive insurance will pay to fix damage that is not covered by collision coverage. You first have to pay a deductible and then insurance will cover the rest of the damage.
Comprehensive coverage protects against claims such as damage from flooding, fire damage, falling objects and a broken windshield. The maximum payout you’ll receive from a claim is the actual cash value, so if the vehicle is not worth much consider dropping full coverage.
More information can be read on the Texas Department of Insurance website through this link. Visitors are able to find a variety of consumer forms, find disaster information, and report car insurance fraud.
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Final considerations
When buying insurance coverage, it’s not a good idea to buy less coverage just to save a little money. Too many times, someone sacrificed liability coverage limits only to discover later they didn’t purchase enough coverage. The ultimate goal is to purchase a proper amount of coverage at the best price, not the least amount of coverage.
We covered many ways to lower your auto insurance rates. The key concept to understand is the more providers you compare, the higher the chance of saving money. You may even find the lowest priced auto insurance comes from a small mutual company.
Cheaper auto insurance is possible online and with local Gainesville insurance agents, and you need to price shop both to have the best selection. Some insurance providers do not offer online price quotes and these regional insurance providers work with independent agents.