How to Lower Car Insurance Premiums in Texas
Just about everyone is looking for a car insurance deal, not to mention bringing down premiums for home and health insurance. Studies routinely show that drivers are paying over $400 more on average than they have to. Studies also show that all they have to do to lower that figure is shop around.
Before we look at how to lower car insurance costs, let’s start with Texas car insurance requirements.
The minimum car insurance required in Texas is liability insurance, which only covers injury or damages to a third party’s property, not the driver or driver’s property. Basic coverage in Texas is called 30/60/25 coverage. This refers to the minimum liability limits of $30,000 for each injured person up to a total of $60,000 per accident and property damage per accident of $25,000.
Many Texas policies include eight basic types of coverages if you’re looking for more: liability coverage, collision coverage, comprehensive coverage, medical payments coverage, personal injury protection coverage, uninsured/underinsured motorist coverage, towing and labor coverage, and rental reimbursement coverage.
After deciding what type of insurance you want, the next step is to shop around for quotes to find the best car insurance deals.
Most deals come from discounts, which you can ask your agent about. Most insurance companies have discounts for defensive driving courses, good grades by students, clean driving records, multiple cars on a policy, and young drivers taking driver education courses.
Also, if possible, consider paying your premium in full before the effective date for discounts ranging from 5-10 percent.
Another way to save is to honestly consider the value of your vehicle. Collision and comprehensive coverage are likely unnecessary for you if your vehicle is over 10 years old or values at under $3,000.
Of course, most drivers have vehicle insurance because it’s required by law in Texas. Since it’s probably not the only type of insurance policy you have, buying all your insurance coverage from one company will almost always save you money.
Combining policies in a bundle is another great way to reduce your costs. Home and auto insurance bundles as well as car and renters insurance bundles are available at a reduced cost.
The nationwide average savings for home and auto insurance bundles is 8 percent. The nationwide average for car and renters insurance savings is about 5 percent.
Ask your agent how you can save money. If that doesn’t work, gather quotes from other agents. You might just find a better deal. Just be sure you’re getting the same coverage for your money.
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