Comparing the Cheapest Addison Auto Insurance

Have you had enough of paying out the nose each month for car insurance? You are in the same boat as many other drivers in Texas.

Companies like GEICO and Progressive all promote huge savings with fancy advertisements and consumers find it hard to sift through the bull and effectively compare rates to find the best deal.

It's important to do rate comparisons once or twice a year since insurance rates are constantly changing. Even if you think you had the best deal a year ago a different company probably has better rates today. Starting right now, forget all the misinformation about auto insurance because it's time to teach you the proper way to remove unneeded coverages and save money.

If you have car insurance now, you will be able to save some money using this strategy. Finding the best rates in Addison is easy if you know what you're doing. But Texas vehicle owners do need to know the methods companies use to market insurance on the web and take advantage of how the system works.

Are you getting all your discounts?

Car insurance can cost a lot, but you may find discounts to help bring down the price. Most are applied at the time you complete a quote, but some must be specifically requested prior to getting the savings.

  • Passive Restraint Discount - Vehicles with factory air bags can qualify for discounts of more than 20%.
  • Drivers Ed for Students - Make teen driver coverage more affordable by requiring them to take driver's ed class if offered at their school.
  • Military Rewards - Being deployed with a military unit could be rewarded with lower premiums.
  • Seat Belt Usage - Requiring all passengers to buckle their seat belts can save up to 15% off your PIP or medical payments premium.
  • Employee of Federal Government - Active or retired federal employment can save as much as 8% with certain companies.
  • Anti-theft Discount - Vehicles with anti-theft systems help deter theft and will save you 10% or more.
  • Pay Now and Pay Less - By paying your policy upfront instead of monthly or quarterly installments you can actually save on your bill.
  • Clubs and Organizations - Affiliation with a civic or occupational organization may earn a discount on your policy.
  • Senior Discount - If you qualify as a senior citizen, you may receive reduced rates.
  • Good Students Pay Less - Performing well in school can get you a discount of up to 25%. The discount lasts up until you turn 25.

Drivers should understand that some credits don't apply to the entire cost. Most only cut individual premiums such as medical payments or collision. So even though they make it sound like you can get free auto insurance, companies wouldn't make money that way. But all discounts will reduce the cost of coverage.

Texas auto insurance

Why some people pay less for insurance in Addison

Smart consumers have a good feel for the factors that play a part in calculating auto insurance rates. Having a good understanding of what controls the rates you pay allows you to make educated decisions that can help you get lower auto insurance prices.

Shown below are some of the factors companies use to determine your rates.

  • Your credit rating is important - Your credit score is a important factor in your rate calculation. Drivers with good credit tend to file fewer claims and have better driving records than drivers who have poor credit. If your credit is low, you could potentially save money when insuring your by improving your credit score.
  • Equipment add-ons that lower auto insurance rates - Driving a car with an alarm system can help bring down rates. Theft prevention devices such as GM's OnStar, tamper alarm systems and vehicle immobilizers all hinder auto theft.
  • Safe vehicles cost less to insure - Cars with high safety ratings get lower rates. Safer cars result in less severe injuries and better occupant protection translates into fewer and smaller insurance claims and more competitive rates for policyholders.
  • Don't let your coverage lapse - Driving your car without having proper coverage can get your license suspended and as a result your rates will increase for letting your coverage have a gap. And not only will your rates increase, getting caught without coverage will get you a license revocation or jail time.
  • Too many auto insurance claims drive up costs - Insurance companies in Texas generally give cheaper rates to people who file claims infrequently. If you are a frequent claim filer, you can look forward to either policy cancellation or increased premiums. Auto insurance is intended to be relied upon for major claims that would cause financial hardship.
  • How many coverages with the same company - Some insurance companies give discounts to people who consolidate policies with them such as combining an auto and homeowners policy. Discounts can be 10 percent or more. Even though this discount sounds good, you still need to compare other company rates to make sure you are getting the best deal. Drivers may still find better rates by buying insurance from more than one company.
  • Don't sacrifice liability coverage - Your policy's liability coverage will protect you in the event that a jury decides you are liable for damages from an accident. Liability provides legal defense coverage starting from day one. Liability is cheap as compared to coverage for physical damage, so do not skimp.

How can State Farm and Allstate save drivers who switch?

Companies like State Farm and Allstate consistently run ads on television and other media. All the ads have a common claim that you'll save big if you change to them. How can each company say the same thing?

All companies can use profiling for the type of driver that earns them a profit. An example of a preferred risk might be profiled as over the age of 40, has no tickets, and has excellent credit. A propective insured that hits that "sweet spot" will qualify for the lowest rates and as a result will probably save when they switch companies.

Potential customers who are not a match for the requirements will be charged a more expensive rate and this can result in business not being written. The ad wording is "customers that switch" not "everybody who quotes" save money. That's why companies can make those claims.

That is why drivers should get a wide range of price quotes. It's not possible to predict the company that will have the lowest rates.

Much more information about auto insurance in Texas is available on the website for the Texas Department of Insurance located here. Texas drivers can find out industry alerts, view a list of available companies, find disaster information, and find a variety of consumer forms.

compare Addison auto insurance rates

Affordable insurance is out there

Throughout this article, we presented a lot of ways to reduce auto insurance prices online. It's most important to understand that the more you quote, the better chance you'll have of finding lower rates. Consumers may even find the lowest premiums are with the least-expected company. Regional companies may only write in your state and offer lower rates than the large multi-state companies such as .

Budget-conscious auto insurance is attainable on the web and with local Addison insurance agents, and you need to comparison shop both to have the best rate selection. Some companies do not offer you the ability to get quotes online and many times these smaller companies only sell through independent insurance agents.