How to Know You're Spending Too Much for Auto Insurance in Alvarado

Overpriced auto insurance can overdraw your bank account and put a big crunch on your finances. Shopping your coverage around is a great way to help make ends meet. Companies like State Farm, Allstate, GEICO and Progressive promote their brand names with advertising and it can be hard to sift through the bull and find the best price available.

Good Decisions Result in Lower Rates

Consumers need to have an understanding of the factors that help determine the price you pay for auto insurance. Having a good understanding of what influences your rates enables informed choices that could result in better auto insurance rates.

The following are a partial list of the pieces auto insurance companies consider when setting premiums.

Do you need those extra coverages? - There are a ton of add-on coverages that you can get tricked into buying on your auto insurance policy. Insurance for roadside assistance, accidental death and term life insurance are some examples. These coverages may sound good when you first buy your policy, but if they're wasting money eliminate the coverages to reduce your premium.
With age comes lower rates - More mature drivers are more responsible, tend to cause fewer accidents and receive fewer citations. Teen drivers are known to be less responsible when driving and because of this, their auto insurance rates are much higher.
Having a spouse can save you money - Having a wife or husband can get you a discount on auto insurance. Having a spouse means you're more mature and it's proven that married drivers get in fewer accidents.
Theft deterrents lower rates - Purchasing a vehicle with an alarm system can help bring down rates. Theft prevention features such as tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping auto theft.
Women pay lower rates - Statistics have proven women are more cautious behind the wheel. However, this does not mean men are worse drivers. Men and women tend to get into accidents in similar numbers, but the male of the species have costlier accidents. Men also tend to get more serious tickets such as DWI and reckless driving. Young males are most likely to cause an accident and are penalized with high auto insurance rates.

Take advantage of discounts

Car insurance companies do not advertise all available discounts in a way that's easy to find, so we researched both well-publicized as well as the least known discounts you could be receiving. If you aren't receiving every discount you deserve, you are paying more than you should be.

Driver Safety - Taking a course in driver safety could cut 5% off your bill if your company offers it.
Student in College - Youth drivers who are attending college and do not have access to a covered vehicle may qualify for this discount.
Own a Home - Owning a home in Alvarado can save you money due to the fact that maintaining a home shows financial diligence.
Drivers Ed for Students - Cut your cost by having your teen driver enroll in driver's education if it's offered in school.
Fewer Miles Equal More Savings - Fewer annual miles could be rewarded with a substantially lower rate.

Keep in mind that some credits don't apply to the overall cost of the policy. Most cut individual premiums such as liability and collision coverage. So even though it sounds like you would end up receiving a 100% discount, it just doesn't work that way.

To choose insurers who offer auto insurance discounts in Alvarado, click here.

Are auto insurance companies telling the truth?

Texas consumers can't ignore all the ads for car insurance savings by 21st Century, Allstate and State Farm. All the companies have a common claim that you can save after switching to their company.

How can each company make almost identical claims?

Different companies have a preferred profile for the driver that makes them money. For instance, a profitable customer could possibly be between 25 and 40, insures multiple vehicles, and has great credit. A driver that hits that "sweet spot" gets the lowest rates and most likely will save when they switch companies.

Drivers who don't qualify for the requirements must pay higher premiums and this can result in the driver buying from a lower-cost company. The ads say "customers that switch" not "people who quote" save that much. This is how insurance companies can advertise the savings. This illustrates why you should get as many comparisons as possible. It is impossible to predict which insurance companies will fit your personal profile best.

How to know if you need help

When buying the best auto insurance coverage for your personal vehicles, there really is not a one size fits all plan. Everyone's needs are different and your policy should reflect that. These are some specific questions may help you determine whether your personal situation would benefit from an agent's advice.

Should I rate my vehicle as pleasure use or commute?
Why does it cost so much to insure a teen driver in Alvarado?
Does my policy cover my teen driver if they drive my company car?
Is rental equipment covered for theft or damage?
Is my vehicle covered for flood damage?
Does medical payments coverage apply to all occupants?
Should I buy additional glass protection?
Does my policy cover me when driving someone else's vehicle?

If you can't answer these questions, then you may want to think about talking to a licensed insurance agent. If you don't have a local agent, complete this form or go to this page to view a list of companies. It is quick, free and can help protect your family.

Additional detailed information is located at the Texas Department of Insurance website. Texas consumers can discover disciplinary actions, read enforcement actions against agents and companies, get help finding coverage, and view a list of available companies.

A tidy conclusion

Affordable auto insurance can be sourced online and also from your neighborhood Alvarado agents, so you should compare both to have the best chance of lowering rates. There are still a few companies who may not provide online price quotes and usually these small, regional companies provide coverage only through local independent agents.

When you buy insurance online, it's not a good idea to buy poor coverage just to save money. There are a lot of situations where drivers have reduced collision coverage and learned later that the few dollars in savings costed them thousands. The proper strategy is to purchase plenty of coverage at a price you can afford while not skimping on critical coverages.