How to Avoid Paying Too Much For Car Insurance

Paying for car insurance is a monthly expense many can relate to. In the state of Texas, around 23.7 million residents, or around 83% of the state’s total population, have either a driver’s license or a DPS-issued identification card, according to the Texas Comptroller’s office. Considering that car insurance is mandatory to legally operate a vehicle within the state, it’s no wonder that drivers across the Lone Star State are looking for ways to save.

The good news is that drivers have plenty of ways to avoid paying too much for car insurance. Although finding cheap car insurance may feel like a pipe dream for many, there are practical ways to save money. You can even protect your vehicle with viable insurance that doesn’t cut your coverage.

Freedom Insurance Group has helped drivers in Texas save an average of 40% since opening up shop in 2005. We do so not through gimmicks or tricks, but through sound, proven methods that deliver our clients the coverage they deserve all for the lowest price available. Get to know some of the best ways you can lower your auto insurance rates and why your rates may go up in the first place.

Reasons Your Car Insurance Goes Up

Drivers who are looking to save money need to be aware of the many reasons their car insurance may go up. Every insurance company is going to look at several factors that determine the amount of risk you have as a client when they insure you as a client. If you have less risk then you can save a ton of money by paying less for your premiums. Conversely, drivers that are deemed riskier to insure will pay more for coverage.

The same is true in terms of the amount of coverage you’ll purchase from your auto insurance provider. If you are looking to purchase multiple types of coverage, you will pay more per month than if you were to only enroll in a minimum liability auto policy.

Some of the factors auto insurance carriers will assess will be completely out of your control. Others will be personal factors that you can influence both positively and negatively. If you are looking to do what you can to avoid paying too much for car insurance, you’ll want to understand these touchpoints and play your part in keeping your rates low:

• Your age isn’t something that you can control, but because younger drivers cause more accidents due to inexperience, you can expect to pay more to insure younger drivers.
• Men generally pay more than women when it comes to insurance making gender a key issue among insurance brands.
• Where you live and drive can affect your car insurance rates.
• Married couples receive lower insurance rates, so if you have yet to tie the knot, you’ll be paying more.
• For insurance companies, when you file a claim for a loss, they lose money by paying you for reimbursement. Drivers with a better driving record and fewer claims will receive lower rates.
• The number of annual miles you put on your vehicle can also affect your premiums. Fewer miles means less time on the road. Less time on the road means there is a smaller chance you’ll be involved in an accident.
• What kind of vehicle you drive will play a role in the amount you pay for auto insurance.
• Some car insurance policies come with deductibles. If you choose a higher deductible, you’ll be paying less each month on your premium, and vice versa.
• Your insurance score, which is tied to your credit score, is looked at by insurance providers to determine if you are going to pay in full and on time. You’ll want to keep your insurance score high to avoid paying more for your auto insurance premium.
• Car insurance companies are businesses aiming to make a profit. Sometimes your rates go up simply because your insurance provider is looking to increase its profit margin.

Again, you might not be able to control your age, but you can choose the kind of deductible you are paying. Now that you understand why your insurance might rise, take a closer look at some of the tips and tricks drivers in Texas can use to offset these factors and save money.

Drive Safely to Save Money

Driving safely is a great way to avoid paying too much for car insurance and its benefits reach well beyond saving money. You can save time, hassle, and most importantly, lives all by driving safely.

This means buckling up, avoiding distractions such as texting, following posted traffic signals and signs, going the speed limit, and of course, driving sober.

When you drive safely, you can receive discounts from your insurance provider as a reward. Different brands have different stipulations and metrics for assessing such discounts, but most insurance providers love to incentivize safe driving through savings.

Here are a few ways drivers can protect themselves and others while on the road and save money in the process:

• Never drive under the influence of drugs or alcohol.
• Avoid distractions while driving. This includes the use of devices, tuning the radio, eating, applying makeup, talking, rubbernecking, and dealing with unruly passengers.
• Always drive according to the rules of the road and observe all posted speed limits.
• Be aware of your surroundings at all times and remember to drive defensively to help with your decision-making and reaction times.
• Let cooler heads prevail. Avoid road rage at all costs.
• Drive appropriately for the conditions you are subjected to. For example, if it is raining, be sure to slow down and give yourself extra space between vehicles.
• Make sure that you and any passengers are buckled up before heading out on the road.

The safer you drive, the fewer accidents you are likely to be a part of. The fewer accidents you are a part of, the fewer claims you’ll submit, and so on. Ask your insurance agent about safe driving discounts and do everyone a favor by committing to safe driving practices that help you avoid wrecks and keep your auto insurance premium low.

Bundle Your Car Insurance

A mistake many drivers may be making is failing to combine home and auto insurance coverages. If you are a homeowner, you’ll also need home insurance. By bundling these two coverages, you can save a substantial amount of money on both premiums.

If you are renting your place of living, bundling is still an attractive option. Many top insurance brands allow renters to combine renters insurance with an auto policy for maximum coverage and maximum savings.

Similar to bundling, having multiple policies can also help you save money. This is a great option for households with multiple drivers. When you have more than one vehicle to insure, sticking with the same insurance provider can lower your overall cost when compared to using multiple brands.

Every situation is different, but bundling is one of the best tools drivers have to save on auto insurance and beyond.

Take Advantage of Car Insurance Discounts

By taking advantage of the discounts available to you, you’ll be saving a good amount of cash without cutting your protection. There are many different discounts available meaning there are more opportunities for drivers like you to save. Some of these discounts include good driving, good student, military, organizational, and so on. Speaking with an insurance agent can help you determine which discounts work best for your lifestyle.

Compare Your Auto Insurance Coverage

As we’ve discovered, there are a variety of variables that each insurance carrier will take into consideration when creating your premium. These factors may be commonplace throughout the industry, however, the way they are assessed is anything but.

Each auto insurance brand will look into things such as your age and the type of vehicle you want to insure, but the way each brand does so will differ greatly.

Because each auto insurance company is using its own method to assess your risks, you’ll notice that you will receive a variety of prices for your coverage.

Failing to shop around and compare your car insurance rates among a variety of insurance brands can cost you tons of money. Comparison shopping is likely the best way drivers have to lower their car insurance rates.

Assess Your Car Insurance Coverage Needs

Insurance policies are mostly optional financial protections that help the policyholder guard their finances against a range of potential perils. In the case of car insurance in the state of Texas, things change as every driver is required to maintain current proof of insurance.

The state minimum requires drivers to possess liability coverage that protects in two parts:

• Property Damage Liability Coverage- Helps you restore losses related to physical damage incurred by another party due to an accident.
• Bodily Injury Liability Coverage- Protection that helps you pay for legal and medical expenses that may occur after an accident.

Beyond this coverage, there are many different coverage options available that can help for a variety of reasons including hit-and-runs, damage to your vehicle from a fallen tree, paying the medical payments of you or a passenger after an accident, and more.

Take a closer look at the many coverage options available to motorists through their auto insurance policy:

*Note: The term “full coverage” may vary due to your policy limits and the extra endorsements applicable to your individual policy. Full coverage is not blanket coverage. For more information, please speak with a licensed insurance agent before enrolling.

The goal of any driver should be to stay protected without overpaying for unnecessary coverage. An example would be to avoid expensive full coverage auto insurance if your vehicle isn’t worth much and you aren’t on the road often.

For drivers with newer cars that have a longer commute, more coverage may be warranted and should be explored. Knowing which coverages work for you and which may not be necessary is an important step in lowering your car insurance rates.

Consider Your Deductibles

Comprehensive coverage and collision coverage both require you to pay a deductible before receiving your reimbursement after an accident. If you have a lower deductible, you won’t have to pay as much after a loss, but before you commit to lowering your deductible, remember the opposite is also true. Drivers who pay more for their deductible and lower monthly car insurance rates.

This is important to consider because while it is unlikely for you to get in an accident every month, you will be responsible for paying your premium. A deductible is only necessary after an accident, so you can save your money in a rainy day fund for use during such an event and save money by paying less for your coverage.

Each situation is different and drivers who do not have the finances to pay a large chunk of money and/or are accident-prone should think twice before raising their deductible.

If you are a driver who does not have a history of accidents and can afford to save money for when times are tough, again, raising your deductible is an easy way to start saving money on coverage.

Avoid Paying Too Much With Cheap Car Insurance

When you understand how to save money on car insurance and work with a network of top-rated insurance brands, finding cheap car insurance is a breeze. That’s why we help our clients by doing the hard work for them and delivering affordable coverage.

You deserve coverage that doesn’t irresponsibly cut your coverage without having to overpay. Contact our agents to see how much you can save or use our free online auto insurance quote tool today!