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Texas Auto Insurance – A Guide to Lowering Your Rates

Auto insurance in Texas can be an expensive business. Below you will find some tips to help you cut down on the costs of Texas auto insurance, but first lets examine some facts concerning auto insurance in Texas.

Mandatory Auto Insurance Coverage in Texas

Like most states, you must have auto insurance in order to drive in Texas. The minimum coverage you must have in the Lone Star State is $20,000 for bodily injury to one person, $40,000 for bodily injury sustained by two or more persons in the same accident and $15,000 for property damage that results from one accident. These are the maximum amounts that the insurance company will pay out in the event of an accident. As any expenses above those amounts will have to be paid by you, you may want to consider increasing the coverage.

Factors That Affect Your Texas Auto Insurance Rates

Credit Rating

Believe it or not, your credit rating does have a direct impact on how much you pay for your auto insurance.

Auto insurance companies factor in a lot of your personal details to arrive at an insurance risk score and various studies have shown that there is a direct correlation between your credit score and the probability that you will file an auto insurance claim. People who pay their bills on time and have a good credit record are considered to be dependable people by the auto insurance companies and therefore good insurance risks.

Raising Your Deductibles

As Auto insurance companies typically raise your next premium by up to 45% if you make a claim, you may want to consider raising your deductibles. A deductible is the amount you would be willing to pay out of your own pocket in the event of an accident before making a claim on your policy. The higher your deductible, the lower your insurance premium.

Your Driving Record

Obviously how good a driver you are will have a great impact on how much you are charged for your auto insurance. The insurance companies are always seeking good insurance risks and if you have a history of making claims, the they will inflate your rates accordingly. Speeding fines and parking tickets all count towards whether or not you are a good driver. On the other hand, if you have a good driving record then it may be worth your while to look for Texas auto insurance companies that offer an “accident forgiveness policy”. The effect of this is that your first claim will not be taken into account when calculating your rate at the time of renewal.

Get Multiple Auto Insurance

If you have more than one vehicle, them take steps to ensure them all with the same auto insurance company. Multi-vehicle discounts can run as high as 25% with some auto insurance companies.

Narrow Your Coverage

You can limit the scope of your coverage to the mandatory liability coverage to drastically reduce your rates, but this may turn out to be a false saving. If you have an accident and are not covered by your insurance then you will have to pay the damages (both to people and property) out of your own pocket and this could run to many thousands of dollars.

Shop Around

Without a doubt, the best way to lower your auto insurance rates is to shop around using the Internet. Getting 5 to 10 quotes online within a few minutes is no problem these days thanks to the many websites that offer these services.

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