Expensive car insurance can empty your bank account, especially in this economy. Shopping your coverage around is a great way to lower your monthly bill.
Because there are so many options, it can be hard to find the best insurance company.
It’s important to compare rates before your policy renews since rates trend upward over time. Just because you had the best deal a few years ago there may be better deals available now. Forget all the misinformation about car insurance because I’m going to let you in on the secrets to how to use online quotes to reduce your cost while improving coverage.
Cut your car insurance rates with discounts
Car insurance companies don’t necessarily list every available discount in an easy-to-find place, so we break down some of the best known and also the lesser-known ways to save on car insurance.
- New Car Discount – Putting insurance coverage on a new car is cheaper compared to insuring an older model.
- Multiple Policy Discount – If you insure your home and vehicles with one company you may earn approximately 10% to 15%.
- Anti-lock Brakes – Anti-lock brake equipped vehicles can reduce accidents and therefore earn up to a 10% discount.
- Military Discounts – Having a family member in the military could be rewarded with lower premiums.
- Driver’s Ed – Have your child take driver’s ed class in high school.
- Good Student – Performing well in school can be rewarded with saving of up to 25%. The good student discount can last until age 25.
- Senior Discount – If you’re over the age of 55, you may qualify for a discount up to 10%.
- Anti-theft System – Vehicles equipped with anti-theft or alarm systems can help prevent theft and earn discounts up to 10%.
- Safe Driver Discount – Insureds without accidents may save up to 50% more than less cautious drivers.
- Discount for Life Insurance – Larger companies have better rates if you take out a life insurance policy as well.
Keep in mind that most discount credits are not given to all coverage premiums. Most only cut individual premiums such as comprehensive or collision. So when the math indicates you can get free auto insurance, it doesn’t quite work that way.
For a list of insurance companies with the best car insurance discounts in Pflugerville, follow this link.
How insurance companies determine rates
Smart consumers have a good feel for the different types of things that come into play when calculating your car insurance rates. Having a good understanding of what controls the rates you pay allows you to make educated decisions that may reward you with much lower annual insurance costs.
- Marriage brings a discount – Having a wife or husband can actually save you money on car insurance. Having a spouse means you’re more mature than a single person it has been statistically shown that being married results in fewer claims.
- Increase deductibles and save – The deductibles define the amount you are willing to pay out-of-pocket before your car insurance pays a claim. Insurance for physical damage to your car, also known as collision and other-than-collision, protects your car from damage. Some instances where coverage would apply are running into the backend of another car, damage from fire, and windstorm damage. The more expense you are required to pay out-of-pocket, the lower your rates will be.
- Clean credit earns discounts – Credit rating is a big factor in calculating your car insurance rates. Drivers who have excellent credit tend to be better drivers and file fewer claims than those with poor credit. If your credit history can use some improvement, you could be paying less to insure your by improving your credit score.
- Men pay higher rates – Statistics demonstrate that men are more aggressive behind the wheel. That doesn’t necessarily mean that women are better drivers. Men and women tend to get into accidents in similar percentages, but the male of the species cause more damage. Men also tend to have more aggressive citations such as DWI and reckless driving. Male drivers age 16 to 19 are several times more likely to be in an accident and are penalized with high car insurance rates.
- Safe vehicles cost less to insure – Vehicles with good safety scores can get you lower premiums. Safer cars reduce injuries and lower injury rates translates into fewer and smaller insurance claims and thus lower rates.
- Where you reside plays a part – Residing in small towns and rural areas is a positive aspect when insuring your vehicles. Drivers who live in large cities have more traffic problems and a longer drive to work. Fewer drivers means a lower chance of having an accident as well as less vandalism and auto theft.
You are unique and your car insurance should be too
When choosing the right insurance coverage, there really is no “perfect” insurance plan. Your needs are not the same as everyone else’s so your insurance needs to address that. Here are some questions about coverages that may help you determine whether or not you will benefit from professional help.
- Do I have any recourse if my insurance company denies a claim?
- When should I not file a claim?
- At what point should I drop full coverage?
- Does my policy pay for OEM or aftermarket parts?
- Do I need higher deductibles?
- Should I rate my vehicle as pleasure use or commute?
If you can’t answer these questions but you think they might apply to your situation, then you may want to think about talking to a licensed agent. To find an agent in your area, take a second and complete this form or you can also visit this page to select a carrier
Additional detailed information can be found at the Texas Department of Insurance website. Visitors are able to discover disciplinary actions, read consumer alerts, and find out industry alerts.
Smart shoppers get results
As you shop your coverage around, never reduce needed coverages to save money. There have been many situations where an insured dropped collision coverage and discovered at claim time that saving that couple of dollars actually costed them tens of thousands. Your goal should be to buy enough coverage at the best price, not the least amount of coverage.
Budget-conscious car insurance can be found online and also from your neighborhood Pflugerville agents, so you should compare both in order to have the best price selection to choose from. Some insurance companies may not provide online price quotes and many times these small, regional companies only sell through independent insurance agents.