How to Know You're Throwing Money Away for Auto Insurance in Anderson

Are you sick and tired of not being able to afford each month for car insurance? Your situation is no different than the majority of other car owners in Texas.

There is such a variety of to buy insurance from, and though it is a good thing to have multiple companies, so many choices can make it hard to compare rates.

More discounts equal less premium

Insuring your fleet can be pricey, but companies offer discounts that can drop the cost substantially. Certain discounts will be applied at the time of quoting, but a few must be requested specifically before you will receive the discount.

Drivers Education - Make teen driver coverage more affordable by requiring them to successfully complete driver's ed class in high school.
Use Seat Belts - Buckling up and requiring all passengers to use their safety belts could cut 10% or more off your PIP or medical payments premium.
Employee of Federal Government - Active or retired federal employment may qualify you for a discount with a few auto insurance companies.
Save over 55 - If you qualify as a senior citizen, you can possibly qualify for a discount up to 10%.
Clubs and Organizations - Participating in a qualifying organization could qualify you for a break when shopping for auto insurance.

Keep in mind that most of the big mark downs will not be given to the entire cost. Most only apply to specific coverage prices like liability and collision coverage. Just because you may think all those discounts means the company will pay you, it just doesn't work that way. But any discount will bring down your premiums.

Understand what determines the rate you pay

Smart consumers have a good feel for some of the elements that come into play when calculating the price you pay for auto insurance. Knowing what influences your rates helps enable you to make changes that will entitle you to big savings.

The list below includes a partial list of the pieces that factor into prices.

High numbers of claims are not good - Companies in Texas provide lower rates to drivers who do not rely on their insurance for small claims. If you frequently file small claims, you can pretty much guarantee higher rates. Insurance coverage is designed for major claims that would cause financial hardship.
Never go without insurance - Not having insurance is a misdemeanor and auto insurance companies will penalize you for letting your coverage have a gap. And not only will insurance be more expensive, but not being able to provide proof of insurance might get you a steep fine or even jail time.You may need to provide proof of insurance in the form of an SR-22 filing with the Texas motor vehicle department.
Rates may be higher depending on your occupation - Careers like judges, architects and financial analysts are shown to have higher average rates due to high stress and lots of time spent at work. Conversely, jobs such as farmers, engineers and the unemployed pay the least.
Older drivers pay less - Teen drivers in Texas tend to be careless and easily distracted in a vehicle so they pay higher auto insurance rates. Mature drivers are more cautious drivers, file fewer claims and tend to be better behind the wheel.
Do you have enough liability coverage? - The liability section of your policy will protect you when a court rules you are at fault for damages caused by your negligence. Liability insurance provides legal defense which can cost thousands of dollars. Liability insurance is quite affordable compared to insuring for physical damage coverage, so buy as much as you can afford.
Marriage pays dividends - Having a wife or husband actually saves money when buying auto insurance. Having a significant other usually means you are more mature and statistics show drivers who are married are more cautious.
Clean credit earns discounts - Having a bad credit rating is a big factor in your rate calculation. Consumers who have high credit scores tend to be less risk to insure as compared to drivers with lower ratings. Therefore, if your credit history can use some improvement, you could potentially save money when insuring your by spending a little time repairing your credit.
Please use or commuting - The more you drive every year the higher your rate. The majority of insurers apply a rate based on their usage. Vehicles not used for work or commuting receive lower rates as compared to vehicles used primarily for driving to work. Ask your agent if your auto insurance policy shows the correct driver usage, because improper ratings can cost you money.

Switch companies and save? Really?

Auto insurance providers like State Farm, Allstate and GEICO regularly use ads in print and on television. They all say the same thing that you can save if you move your policy. How does each company make almost identical claims? It's all in the numbers.

All the different companies can use profiling for the right customer that earns them a profit. For instance, a driver they prefer could possibly be between the ages of 30 and 50, is a homeowner, and has a high credit rating. A customer getting a price quote who fits that profile is entitled to the best price and therefore will save when switching.

Potential insureds who do not match these standards will be quoted more money which usually ends up with the driver buying from a lower-cost company. Company advertisements say "customers who switch" not "everyone that quotes" save that kind of money. That's why insurance companies can state the savings.

This emphasizes why drivers should get as many quotes as possible. It's impossible to know the company that will have the lowest rates.

Learn more today

More information is located on the website for the Texas Department of Insurance found here. Texas consumers can download brochures, find a variety of consumer forms, read industry bulletins, and read enforcement actions against agents and companies.

Final considerations

As you restructure your insurance plan, it's very important that you do not skimp on coverage in order to save money. There have been many situations where an accident victim reduced collision coverage and learned later that they should have had better coverage. The proper strategy is to buy enough coverage at the best price while still protecting your assets.

Affordable auto insurance is definitely available online in addition to many Anderson insurance agents, and you should compare price quotes from both to have the best chance of lowering rates. Some insurance companies do not provide you the ability to get quotes online and these small, regional companies work with independent agents.