No one in their right mind cherishes buying auto insurance, especially when they are paying too much. Big companies like GEICO, 21st Century and Progressive increase brand awareness with advertising and consumers find it hard to not get sucked in by the cute commercials and take the time to shop coverage around.
Consumers should take time to get comparison quotes on a regular basis because rates change frequently. Just because you found the lowest rates two years ago you may be paying too much now. So block out anything you think you know about auto insurance because we’re going to show you how to quote online to properly buy coverages and cut your premium.
How much can you save with discounts?
Car insurance can cost a lot, but you can get discounts to reduce the price significantly. Certain discounts will be triggered automatically when you complete an application, but lesser-known reductions have to be specially asked for before you get the savings. If you aren’t receiving every discount you qualify for, you are paying more than you should be.
- Student Driver Training – Have your child successfully complete driver’s ed class in high school.
- Bundle and Save – When you combine your home and auto insurance with one insurance company you will save 10% to 20% off each policy.
- Life Insurance Discount – Some companies give a break if you buy life insurance from them.
- Student in College – Children who are attending college and do not have access to a covered vehicle can be insured at a reduced rate.
- Homeowners Pay Less – Simply owning a home can save you money because maintaining a house is proof that your finances are in order.
- Multiple Cars – Insuring all your vehicles on one policy could earn a price break for each car.
- Accident Forgiveness – Some insurance companies will allow you to have one accident before your rates go up if you are claim-free for a set time period.
- Safe Drivers – Drivers who avoid accidents can pay as much as 50% less than less cautious drivers.
- New Vehicle Savings – Insuring a new car can cost up to 25% less since new cars are generally safer.
As a disclaimer on discounts, most discounts do not apply the the whole policy. Some only reduce specific coverage prices like liability, collision or medical payments. Just because it seems like all the discounts add up to a free policy, companies don’t profit that way. Any amount of discount will help reduce your premiums.
For a list of insurers who offer auto insurance discounts in Texas, click here.
Misconceptions in auto insurance advertisements
Consumers in Texas can’t ignore all the ads that promise big savings from companies such as State Farm and Allstate. All the companies make an identical promise about savings if you switch your policy.
But how can every company claim to save you money?
All companies have a preferred profile for the driver that makes them money. An example of a profitable customer might be profiled as a mature driver, has no driving citations, and drives less than 7,500 miles a year. A customer getting a price quote who matches those parameters will get very good rates and most likely will save quite a bit of money when switching.
Consumers who don’t meet these standards will have to pay higher prices and this can result in business going elsewhere. The ad wording is “drivers who switch” not “everyone that quotes” save that kind of money. That is how companies can advertise the savings.
Because of the profiling, drivers should get as many comparisons as possible. It’s impossible to know the company that will provide you with the cheapest rates.
For more Texas auto insurance information
Additional auto insurance information can be read on the website for the Texas Department of Insurance located here. Consumers can read state legal mandates and laws, learn about specific coverages, and find out industry alerts.
Also read more on this resource for Texas auto insurance prices and this page where you can also get Mckinney auto insurance quotes.
Better coverage you can count on
While you’re price shopping online, don’t be tempted to buy less coverage just to save a little money. In too many instances, drivers have reduced full coverage only to regret that the few dollars in savings costed them thousands. The proper strategy is to buy enough coverage at an affordable rate while still protecting your assets.
We’ve covered some good ideas how to lower your auto insurance rates. The most important thing to understand is the more quotes you get, the better chance you’ll have of finding lower rates. You may even find the lowest priced auto insurance comes from the smaller companies. These smaller insurers often have lower prices on specific markets than the large multi-state companies such as Progressive and GEICO.