Find Car Insurance Rates

The factors that may affect your car insurance rates in the State of Texas include:

* Type of car you drive – Car insurance providers assume that someone who drives a sports car is more likely to speed than someone who drives an SUV, therefore placing him/her at a higher risk.

* The area where you live – Geography, population density, culture and other local factors have an impact on how likely you are to have an accident. Insurance providers attempt to take such factors into effect when calculating your auto insurance rate.

* Your claims history – Obviously the more accidents you have had, the more likely it is that auto insurance providers will consider you a risk, and consequently, you can expect higher rates.

* Your credit score – Making the assumption that a responsible person will be a responsible driver, the best car insurance rates are given to drivers with impeccable credit histories.

* Your age – Statistically speaking, mature drivers have fewer accidents and therefore can expect to be quoted low auto insurance rates.

* How you use your car – The more miles you drive each day, the higher your probability of accidents. How you use your car–for business, pleasure, or simply to get to work–will have an impact on whether you will be able to find a low car insurance rate.

Realize that there are three kinds of insurance companies in the State of Texas: preferred, standard, and nonstandard. Preferred companies offer the best car insurance rates, while standard companies are usually higher. If you encounter an insurance company that seems to target drivers with poor records or bad credit, it is probably a nonstandard company. In some cases you will find that an insurance company is a group of companies, which includes one or more provider in each class. They give the best car insurance rates to the least risky clients through their preferred companies, the higher rates to the more risky drivers through the standard or nonstandard providers.

Choosing A Car Insurance Plan

It can be tricky shopping around for the best car insurance because you will find you aren’t always comparing apples to apples. While one car insurance plan may offer you a lower premium, it may have a higher deductible or offer a lower payout when you file a claim.

Before you start shopping around, find out the laws in your state. If you are required to carry vehicle insurance, find out the details of the minimum coverage that is required. Next you need to decide on the deductible you are willing to pay. This is the amount you will be responsible for each time you file a claim before the insurance company will pay anything.

You will also have to decide if you want to get full coverage or liability insurance coverage. Most of the time you will need to have full coverage insurance if you have a loan out with the vehicle as collateral. With liability coverage only, your premium will be lower but you will only be covered if you are liable for the accident. Should the other party be at fault or your car gets vandalized your insurance plan won’t cover it.

If you already have insurance with a particular agency for your home, start by getting a quote from them. Most insurance companies will offer you a discount if you have more than one type of policy with them. They can even combine the payments together for one easy monthly payment.

Poor Credit And Auto Insurance

Regardless of how they’re derived, the scores are supposed to predict who is more likely to file a claim. The more likely you are to file a claim, the higher your insurance rates. Watching your Credit Score is fine advice if you have perfect or near perfect credit. Unfortunately, it does little to help the 1,112,000 Americans who filed for bankruptcy last year or the millions who have below average credit. For these people, trying to find affordable auto insurance can be a very real problem, with monthly insurance premiums equaling or surpassing monthly car payments. Even those who have excellent credit may still pay higher premiums just because they applied for a loan, a credit card, or obtained some other type of credit within the previous year of receiving their insurance policies. If all this sounds a little unfair to you, you’re not alone.

Twenty-two states have tried to enact legislation that would control the use of “Risk Scoring.” As expected, due to the strength of the insurance lobbyists, most of this legislation has either been dropped or watered down to the point it does little to protect the consumer. Three states California, Hawaii, and Massachusetts, -have stepped up to help all consumers, especially those with less than perfect credit by banning the use of credit scores and history in determining insurance policy acceptance and premiums. That’s great news for people who live in those states but, aside from moving, how are the rest of us able to save money on our auto insurance? Choose an insurance company that DOES NOT use “risk scores.” Nearly 10{eebe948e3c802a13b7a1ca6464110e37e05aaea8af8e5b9075d6ed02d8a0e359} of insurance companies don’t use this scoring policy. Their premiums are based upon your driving record, not credit score. These companies tend to be smaller, but what they lack in size they more than make up for with excellent customer service. Some cater to specific organizations or professions. Most have “A++” to “B+” financial ratings which means they will be there if and when you ever need them. As good as these companies sound, remember to keep one thing in mind: even though these companies don’t use Credit Scoring to determine premiums, it doesn’t mean you’ll automatically receive a lower premium. Chances are you will, especially if you have credit problems, but you still need to shop around and compare prices. Just make sure you’re comparing the same coverage from each insurer. The only down side to using these companies is finding them. They don’t advertise the fact they don’t use risk scoring so you may have to do some investigating on your own. You can start by contacting your state’s insurance department.

Lowering Car Insurance Rate

– Deductibles. Changing the deductibles on your insurance can have a drastic influence on your insurance rate. You should make your deductible for collision coverage as high as you feel comfortable with. By having it as high as $1000, can make a big difference on your insurance. On the other hand, you probably want a low deductible on comprehensive coverage, since you do not want to be stuck with a big bill if someone hits your car in a parking lot and runs off. Take the value of your car in consideration. If your car is worth less than say $3000, you can probably drop collision coverage completely and save enough money in a couple of years to replace your vehicle.

– Sports and four-wheel drive cars carry a significantly higher premium than other cars, especially if you are under 25 years old. Make sure you can afford the insurance before buying such a vehicle.

– An anti-theft device carries a lot of weight with insurance companies. If your car does not have one, it might be worthwhile to have one installed. You could have one installed for as little as $100.

– Avoid unnecessary and frivolous claims. It might sound like common sense, but a lot of people abuse their insurance with petty claims. Consider how much your deductible is and how much the repairs will cost. If may be worth your while to pay out of pocket, since many companies reward drivers for being claim free.

– Exaggerating the value of your car does not impress anybody and will cause a higher insurance rate. Only insure it for the amount you need for replacement and update this amount annually.

– If you can, pay your premiums annually instead of monthly or quarterly. Insurance companies often add a service, or interest fee if you choose to pay monthly.

– By doing your research and buying insurance online may save you time and money, because many companies will give discounts online. It is also easy to get comparative quotes.