6 Shopping Tips Proven to Save Money on Car Insurance Costs in Houston Texas

Are you tired of being strong-armed to buy car insurance? You are no different than many other Texas drivers.

Consumers have many insurance companies to buy insurance from, and although it’s a good thing to be able to choose, lots of choices makes it harder to find the best rates.

It’s important to shop coverage around at least once a year due to the fact that insurance rates are adjusted regularly by insurance companies. If you had the lowest price two years ago there is a good chance you can find better rates now. Starting right now, ignore everything you know about car insurance because you’re going to learn the tricks you need to know to lower your annual insurance bill.

The purpose of this article is to let you in on the best way to quote coverages. If you have car insurance now, you stand a good chance to be able to cut costs considerably using this strategy. But Texas drivers need to learn how the larger insurance companies determine prices and take advantage of how the system works.

How to Lower Your Car Insurance Cost in Houston, Texas

The are a couple different ways of comparing rate quotes and find the best price. The fastest way to find competitive insurance rates involves getting comparison quotes online. This is very easy and can be done in a couple of different ways.

  • One of the best ways to find low rates is to use a rate comparison form click to view form in new window. This form saves time by eliminating separate quotation requests for every car insurance company. One quote request will get you rate comparisons from several companies.
  • A different way to compare prices consists of going to the website for every company you want to comare to complete their respective quote request forms. For example, let’s say you want to compare State Farm, Farmers and Travelers. To find out each rate you need to spend time on each company’s site to enter your coverage information, which is why the first method is quicker. For a list of links to companies insuring cars in Houston, click here.

Whichever method you choose, compare the exact same quote information for every quote you compare. If each company quotes unequal deductibles or liability limits you will not be able to decipher which rate is best in Houston. Quoting even small variations in coverage limits can result in a big premium difference. And when quoting car insurance, remember that having more price comparisons gives you a better chance of getting a better price.

Do you qualify for a discount?

Properly insuring your vehicles can get expensive, but there could be available discounts to reduce the price significantly. Larger premium reductions will be automatically applied at the time of purchase, but some may not be applied and must be specially asked for before they will apply.

  • Early Switch Discount – A few companies offer discounts for signing up prior to your current policy expiration. It’s a savings of about 10%.
  • Auto/Life Discount – Select insurance companies reward you with a discount if you purchase auto and life insurance together.
  • Low Mileage Discounts – Low mileage vehicles could be rewarded with a substantially lower rate.
  • Theft Prevention System – Vehicles equipped with anti-theft or alarm systems prevent vehicle theft and earn discounts up to 10%.
  • Seat Belts Save more than Lives – Buckling up and requiring all passengers to wear their seat belts can save 10% or more off your PIP or medical payments premium.
  • No Accidents – Drivers who don’t have accidents pay much less when compared to frequent claim filers.

A little note about advertised discounts, most discounts do not apply to the entire cost. The majority will only reduce specific coverage prices like medical payments or collision. Just because you may think you could get a free car insurance policy, companies don’t profit that way. But all discounts will reduce the amount you have to pay.

To choose insurance companies offering car insurance discounts in Houston, click here to view.

What coverages do I need?

When it comes to choosing coverage for your personal vehicles, there really is no “best” method to buy coverage. Everyone’s situation is unique so this has to be addressed. For example, these questions may help you determine if your situation would benefit from an agent’s advice.

  • Am I covered when pulling a rental trailer?
  • Why is insurance for a teen driver so high in Houston?
  • How do I file an SR-22 for a DUI in Texas?
  • Do I need rental car coverage?
  • Am I covered when driving someone else’s vehicle?
  • When should my teen driver be added to my policy?
  • Do I get a pro-rated refund if I cancel my policy early?
  • Does my insurance cover my expensive audio equipment?
  • Does my personal auto insurance policy cover using my vehicle for business use?
  • What discounts do I qualify for?

If you can’t answer these questions but one or more may apply to you then you might want to talk 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 information is available on the website for the Texas Department of Insurance through this link. Texas consumers can file complaints about an insurance agent or broker, find a variety of consumer forms, find out industry alerts, and read enforcement actions against agents and companies.

Car insurance ads bend the truth

Companies like State Farm and Allstate constantly bombard you with ads on television and other media. All the ads make the same claim that you can save if you switch to them. How does each company say the same thing? It’s all in the numbers.

All companies have a preferred profile for the driver they prefer to insure. For example, a desirable insured could possibly be between 30 and 50, owns a home, and has excellent credit. A customer getting a price quote who matches those parameters will get very good rates and therefore will save when switching.lower rates in Houston

Drivers who are not a match for this ideal profile will have to pay more money and this can result in the driver buying from a lower-cost company. The ads state “people who switch” not “everybody who quotes” save money. That’s the way insurance companies can confidently state the savings.

Because of the profiling, it’s extremely important to compare many company’s rates. It’s impossible to know which company will fit your personal profile best.

Specific coverages

Having a good grasp of your car insurance policy can be of help when determining the right coverages and the correct deductibles and limits. Policy terminology can be ambiguous and nobody wants to actually read their policy. These are typical coverage types available from car insurance companies.

Protection from uninsured/underinsured drivers

Your UM/UIM coverage provides protection from other motorists when they either are underinsured or have no liability coverage at all. Covered losses include hospital bills for your injuries as well as your vehicle’s damage.

Since many Texas drivers carry very low liability coverage limits (30/60/25), it only takes a small accident to exceed their coverage. This is the reason having UM/UIM coverage should not be overlooked. Most of the time these limits are identical to your policy’s liability coverage.

Coverage for liability

This coverage can cover damages or injuries you inflict on people or other property. This insurance protects YOU against claims from other people. It does not cover damage sustained by your vehicle in an accident.

Liability coverage has three limits: per person bodily injury, per accident bodily injury, and a property damage limit. You commonly see values of 25/50/25 which means $25,000 bodily injury coverage, a per accident bodily injury limit of $50,000, and $25,000 of coverage for damaged property. Another option is a combined limit which limits claims to one amount with no separate limits for injury or property damage.

Liability coverage protects against things such as loss of income, repair costs for stationary objects, structural damage and medical expenses. How much coverage you buy is up to you, but consider buying as much as you can afford. Texas requires drivers to carry at least 30,000/60,000/25,000 but you should think about purchasing more coverage.

Medical expense insurance

Medical payments and Personal Injury Protection insurance reimburse you for expenses like doctor visits, chiropractic care, prosthetic devices, X-ray expenses and funeral costs. They are often used to cover expenses not covered by your health insurance policy or if you are not covered by health insurance. They cover all vehicle occupants as well as any family member struck as a pedestrian. Personal injury protection coverage is not an option in every state and gives slightly broader coverage than med pay

Comprehensive (Other than Collision)

insurance quote Texas

Comprehensive insurance will pay to fix damage that is not covered by collision coverage. You need to pay your deductible first then the remaining damage will be covered by your comprehensive coverage.

Comprehensive insurance covers things like hitting a bird, damage from a tornado or hurricane, hitting a deer and a tree branch falling on your vehicle. The highest amount you can receive from a comprehensive claim is the ACV or actual cash value, so if it’s not worth much more than your deductible it’s probably time to drop comprehensive insurance.

Collision insurance

Collision insurance will pay to fix damage to your vehicle resulting from a collision with another vehicle or an object, but not an animal. You first must pay a deductible then the remaining damage will be paid by your insurance company.

Collision can pay for things such as colliding with another moving vehicle, hitting a mailbox and crashing into a building. This coverage can be expensive, so consider removing coverage from lower value vehicles. It’s also possible to choose a higher deductible to save money on collision insurance.

Quote often and quote early

You just read some good ideas how you can get a better price on car insurance quotes in Houston. It’s most important to understand that the more quotes you get, the better likelihood of reducing your rate. You may even discover the biggest savings come from a smaller regional carrier. Regional companies can often provide lower rates in certain areas compared to the large companies like State Farm, GEICO and Nationwide.

When buying insurance coverage, it’s very important that you do not buy poor coverage just to save money. In many cases, an insured dropped comprehensive coverage or liability limits only to regret at claim time they didn’t purchase enough coverage. Your goal should be to purchase plenty of coverage for the lowest price while not skimping on critical coverages.