Expensive auto insurance can bleed your monthly budget and make it impossible to make ends meet. Doing a rate comparison is free, only takes a few minutes, and is a good way to tighten up your finances.
Since you have so many options when it comes to auto insurance, it can be hard to find the most affordable auto insurance provider.
It’s a good habit to get comparison quotes once or twice a year since insurance rates trend upward over time. Even if you think you had the best deal for Passat insurance six months ago a different company probably has better prices today. Ignore everything you know about auto insurance because you’re about to find out the only way to find better coverage at a better price.
Finding the best rates in Austin is not rocket science. In a nutshell, anyone who carries auto insurance should be able to reduce their rates. But Texas consumers must know how the larger insurance companies sell insurance online and use this information to your advantage.
Use discounts to get cheaper Austin auto insurance rates
Some companies don’t always publicize every available discount in a way that’s easy to find, so the following list contains a few of the more well known and the more hidden credits available to bring down your rates.
- Low Miles Discount – Low mileage vehicles may allow you to get lower auto insurancerates due to less chance of an accident.
- Theft Deterent – Cars, trucks, and SUVs with anti-theft systems can help prevent theft and will save you 10% or more.
- ABS Brakes – Cars with anti-lock braking systems can avoid accidents so companies give up to a 10% discount.
- No Accidents – Good drivers with no accidents are rewarded with significantly better rates on compared to accident-prone drivers.
- Online Discount – Many companies will provide an incentive for signing up on the internet.
- Auto/Life Discount – Not every insurance company offers life insurance, but if they do you may earn better prices if you take out some life insurance in addition to your auto policy.
- Discount for Home Ownership – Being a homeowner can earn you a little savings because of the fact that having a home demonstrates responsibility.
It’s important to understand that many deductions do not apply the the whole policy. Some only reduce individual premiums such as physical damage coverage or medical payments. Just because you may think you would end up receiving a 100% discount, you won’t be that lucky.
If you would like to choose from a list of providers that offer multiple discounts in Texas, click this link.
Do you really save 40% when you switch?
Popular auto insurance providers such as State Farm and Allstate endlessly run ads on TV and radio. They all make the same claim about how much you will save if you move to them. How can each company cost less than your current company? It’s all in the numbers.
Different companies are able to cherry pick for the type of driver that makes them money. For instance, a preferred risk could possibly be between 25 and 40, has had continuous coverage, and drives a lower-performance vehicle. A driver that hits that “sweet spot” will probably get cheap premium rates and will also save a lot of money.
People who do not match those standards will be charged a higher premium which usually ends up with business going elsewhere. If you listen to the ad wording, they say “drivers who switch” not “everybody who quotes” save that kind of money. That’s the way companies can advertise the savings. This really emphasizes why drivers must quotes from several different companies. It is impossible to predict which auto insurance company will provide you with the cheapest prices.
Auto insurance coverage options for a Volkswagen Passat
Understanding the coverages of auto insurance aids in choosing the right coverages for your vehicles. Auto insurance terms can be confusing and reading a policy is terribly boring. Shown next are typical coverage types offered by auto insurance companies.
Coverage for liability – Liability insurance will cover damage that occurs to people or other property. Split limit liability has three limits of coverage: bodily injury per person, bodily injury per accident and property damage. Your policy might show limits of 50/100/50 that means you have $50,000 in coverage for each person’s injuries, a limit of $100,000 in injury protection per accident, and property damage coverage for $50,000.
Liability coverage pays for things such as repair bills for other people’s vehicles, medical services, medical expenses and bail bonds. How much liability coverage do you need? That is a decision to put some thought into, but it’s cheap coverage so purchase as large an amount as possible. Texas state law requires minimum liability limits of 30,000/60,000/25,000 but you should consider buying more coverage.
Comprehensive or Other Than Collision – This covers damage caused by mother nature, theft, vandalism and other events. A deductible will apply then your comprehensive coverage will pay.
Comprehensive can pay for claims such as a broken windshield, falling objects and hitting a deer. The maximum amount you’ll receive from a claim is the actual cash value, so if the vehicle’s value is low consider removing comprehensive coverage.
UM/UIM Coverage – Your UM/UIM coverage protects you and your vehicle’s occupants from other motorists when they do not carry enough liability coverage. This coverage pays for hospital bills for your injuries as well as damage to your Volkswagen Passat.
Due to the fact that many Texas drivers only carry the minimum required liability limits (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.
Medical costs insurance – Coverage for medical payments and/or PIP kick in for bills such as dental work, EMT expenses, funeral costs and chiropractic care. They are often used to fill the gap from your health insurance policy or if you lack health insurance entirely. Coverage applies to both the driver and occupants and will also cover being hit by a car walking across the street. Personal injury protection coverage is only offered in select states but can be used in place of medical payments coverage
Collision coverage – Collision coverage pays to fix your vehicle from damage caused by collision with another car or object. You have to pay a deductible then your collision coverage will kick in.
Collision can pay for things like sideswiping another vehicle, sustaining damage from a pot hole, colliding with another moving vehicle, damaging your car on a curb and hitting a parking meter. Collision is rather expensive coverage, so consider removing coverage from older vehicles. It’s also possible to raise the deductible to get cheaper collision coverage.
More Texas auto insurance resources
Even more information is located at the Texas Department of Insurance website. Consumers can view a list of available companies, file complaints about a company, file complaints about an insurance agent or broker, and view agent and company licensing information.
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Final thoughts
When you , you should never buy lower coverage limits just to save a few bucks. In too many instances, someone dropped liability limits or collision coverage only to regret at claim time that the small savings ended up costing them much more. Your focus should be to find the BEST coverage at the best cost while still protecting your assets.
A few companies do not provide online price quotes and these smaller providers prefer to sell through local independent agencies. Budget-conscious Volkswagen Passat insurance can be sourced both online and from local insurance agents, and you need to comparison shop both to have the best selection.