There isn’t a single person who loves paying for car insurance, especially knowing they could find better rates elsewhere. Popular companies such as Allstate and Progressive promote their brand names with catchy ads and it is difficult to ignore the flashy ads and do the work needed to find the best deal.
You need to price shop coverage before your policy renews because prices are variable and change quite frequently. Just because you found the best rate for 3 insurance last year the chances are good that you can find a lower premium rate today. Ignore everything you know about car insurance because you’re about to learn one of the best ways to save on car insurance.
The quickest method to compare insurance rates from multiple companies is to take advantage of the fact most of the bigger providers will pay a fee to give rate comparisons. All you need to do is give the companies some data including if you went to college, what your job is, types of safety features, and whether or not you need a SR-22. Your information is submitted instantly to insurance companies and you will receive price estimates instantly to find the best rate.
If you would like to compare rates now, click here then complete the form.
Buyer beware of car insurance advertising tricks
Texas drivers can’t get away from ads for the lowest price car insurance from the likes of Progressive, GEICO, Allstate and State Farm. All the companies say the same thing about savings if you get a free and switch your policy.
How does each company save you money? Just pay attention to how they say it.
All companies require specific criteria for the type of customer that will most likely be profitable. A good example of a profitable customer could possibly be between the ages of 30 and 50, has a clear driving record, and has excellent credit. A customer who meets those qualifications will most likely get cheap prices and have a good chance to cut their rates substantially.
Potential customers who don’t measure up to the ideal profile will see a higher premium and the prospect going elsewhere. The wording the ads use say “drivers that switch” not “everyone who quotes” save that much. That is how companies can advertise the way they do.
Each company has different criteria, so you need to compare rate quotes every year. Because you never know which company will give you the biggest savings.
Take advantage of every car insurance discount
Car insurance companies don’t necessarily list all available discounts in a way that’s easy to find, so we researched a few of the more common and also the more inconspicuous discounts you could be receiving when you . If you do not check that you are getting every discount possible, you may be paying too high a price.
- Accident-Free Discounts – Insureds with no claims or accidents are rewarded with significantly better rates on in comparison to drivers with a long claim history.
- Onboard Data Collection – Drivers who elect to allow companies to track where and when they drive by installing a telematics device such as Progressive’s Snapshot and State Farm’s In-Drive may get a rate reduction if they are good drivers.
- Lower Rates for Military – Having an actively deployed family member may qualify for rate reductions.
- Student in College – Any of your kids who attend college more than 100 miles from home and don’t have a car may qualify for this discount.
- Multiple Vehicles – Drivers who insure all your vehicles with the same company could earn a price break for each car.
- Federal Employees – Active or retired federal employment can earn a discount up to 10% for 3 insurance with a few car insurance companies.
- Professional Organizations – Being in a professional or civic organization may earn a discount on your bill.
- Drive Less and Save – Driving fewer miles can qualify you for discounted rates on garaged vehicles.
- Student Discount for Driver Training – Require your teen driver to enroll and complete driver’s education in high school.
One last thing about discounts, some of the credits will not apply to all coverage premiums. Most only cut the price of certain insurance coverages like collision or personal injury protection. Despite the fact that it seems like it’s possible to get free car insurance, company stockholders wouldn’t be very happy.
Companies and some of the discounts are:
- State Farm has savings for good student, safe vehicle, defensive driving training, multiple policy, anti-theft, and Drive Safe & Save.
- GEICO may include discounts for anti-theft, defensive driver, multi-vehicle, emergency military deployment, and daytime running lights.
- Progressive may have discounts that include good student, homeowner, continuous coverage, online quote discount, online signing, multi-vehicle, and multi-policy.
- 21st Century has discounts for student driver, teen driver, automatic seat belts, defensive driver, good student, anti-lock brakes, and 55 and older.
- American Family offers premium reductions for early bird, Steer into Savings, accident-free, multi-vehicle, and mySafetyValet.
- The Hartford may offer discounts for air bag, vehicle fuel type, good student, anti-theft, driver training, bundle, and defensive driver.
- AAA discounts include multi-car, education and occupation, good student, multi-policy, and AAA membership discount.
Check with every prospective company which credits you are entitled to. Savings may not apply to policyholders in your state. To view insurance companies that provide some of the discounts listed above in Texas, click here to view.
How to know if you need help
When buying adequate coverage for your vehicles, there is no best way to insure your cars. Every situation is different so this has to be addressed. These are some specific questions may help highlight if your insurance needs will benefit from professional help.
- Am I covered when driving a rental car?
- Will my vehicle be repaired with OEM or aftermarket parts?
- How many claims can I have before being cancelled?
- Does my insurance cover a custom paint job?
- Should I buy more coverage than the required Texas minimum liability coverage?
- Can I pay claims out-of-pocket if I buy high deductibles?
- Am I covered if I crash into my own garage door?
If you’re not sure about those questions then you might want to talk to a licensed agent. To find lower rates from a local agent, simply complete this short form or you can also visit this page to select a carrier It’s fast, free and you can get the answers you need.
Car insurance coverages 101
Understanding the coverages of car insurance can help you determine appropriate coverage and proper limits and deductibles. The terms used in a policy can be difficult to understand and coverage can change by endorsement. These are the usual coverages found on the average car insurance policy.
Auto liability insurance
This coverage provides protection from damage or injury you incur to a person or their property in an accident. It protects you from claims by other people, and does not provide coverage for your injuries or vehicle damage.
Coverage consists of three different limits, per person bodily injury, per accident bodily injury, and a property damage limit. Your policy might show values of 100/300/100 that translate to a $100,000 limit per person for injuries, a per accident bodily injury limit of $300,000, and $100,000 of coverage for damaged propery. Occasionally you may see a combined limit which limits claims to one amount and claims can be made without the split limit restrictions.
Liability can pay for claims such as repair bills for other people’s vehicles, court costs and bail bonds. How much liability coverage do you need? That is a personal decision, but consider buying higher limits if possible. Texas state minimum liability requirements are 30,000/60,000/25,000 but you should consider buying more coverage.
Comprehensive coverages
Comprehensive insurance will pay to fix damage OTHER than collision with another vehicle or object. You first have to pay a deductible then the remaining damage will be covered by your comprehensive coverage.
Comprehensive insurance covers things such as a tree branch falling on your vehicle, hail damage and damage from flooding. The highest amount you can receive from a comprehensive claim is the cash value of the vehicle, so if it’s not worth much more than your deductible consider removing comprehensive coverage.
Collision coverage
Collision insurance pays to fix your vehicle from damage caused by collision with another car or object. You will need to pay your deductible then your collision coverage will kick in.
Collision insurance covers things like sustaining damage from a pot hole, driving through your garage door, crashing into a ditch, colliding with a tree and colliding with another moving vehicle. Collision coverage makes up a good portion of your premium, so consider removing coverage from lower value vehicles. Another option is to raise the deductible to get cheaper collision coverage.
Uninsured and underinsured coverage
This coverage provides protection when other motorists either are underinsured or have no liability coverage at all. It can pay for injuries sustained by your vehicle’s occupants and also any damage incurred to your Mazda 3.
Since a lot of drivers only carry the minimum required liability limits (Texas limits are 30/60/25), it doesn’t take a major accident to exceed their coverage limits. That’s why carrying high Uninsured/Underinsured Motorist coverage should not be overlooked. Most of the time your uninsured/underinsured motorist coverages are identical to your policy’s liability coverage.
Coverage for medical payments
Personal Injury Protection (PIP) and medical payments coverage reimburse you for immediate expenses such as ambulance fees, prosthetic devices, pain medications, surgery and EMT expenses. They are utilized in addition to your health insurance policy or if there is no health insurance coverage. It covers you and your occupants and will also cover if you are hit as a while walking down the street. Personal injury protection coverage is only offered in select states but it provides additional coverages not offered by medical payments coverage
Buy online or local, you save
When shopping online for car insurance, it’s not a good idea to buy lower coverage limits just to save a few bucks. There are too many instances where someone dropped uninsured motorist or liability limits to discover at claim time that it was a big mistake. The proper strategy is to purchase plenty of coverage at the lowest possible cost while not skimping on critical coverages.
Lower-priced car insurance is possible online in addition to many Houston insurance agents, so get from both of them to have the best chance of lowering rates. Some insurance companies may not have rates over the internet and usually these regional carriers work with independent agents.
Additional reading for car insurance information
More information can be read on the Texas Department of Insurance website through this link. Texas drivers can read consumer alerts, find a variety of consumer forms, file complaints about a company, and file complaints about an insurance agent or broker.
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