How to Know You're Spending Too Much for Car Insurance in Electra

Having to pay for overpriced car insurance can take a big chunk out of your checking account and force you to make sacrifices. Comparison shopping is a smart way to reduce premiums and put more money in your pocket.

Because you have many companies to choose from, it can be hard to locate the lowest price car insurance company.

It's important to compare prices yearly due to the fact that insurance rates are constantly changing. If you had the best price a few years ago a different company probably has better rates today. Ignore everything you know about car insurance because you're about to learn one of the easiest ways to find the best coverage while lowering your premiums.

The purpose of this post is to teach you how to effectively get price quotes and some money-saving tips. If you are paying for car insurance now, you stand a good chance to be able to lower your premiums substantially using these methods. Although Texas consumers do need to know the methods companies use to determine prices and apply this information to your search.

Take advantage of discounts

The cost of insuring your cars can be expensive, but discounts can save money and there are some available to help offset the cost. Most are applied when you complete an application, but less common discounts must be manually applied before they will apply.

  • College Student - Children who attend school more than 100 miles from home without a vehicle on campus may qualify for this discount.
  • Save with a New Car - Buying coverage on a new vehicle is cheaper due to better safety requirements for new cars.
  • Lower Rates for Military - Having a deployed family member can result in better rates.
  • Anti-lock Brake Discount - Cars that have steering control and anti-lock brakes prevent accidents and earn discounts up to 10%.
  • Senior Citizens - If you qualify as a senior citizen, you can possibly qualify for a small decrease in premiums.
  • Clubs and Organizations - Being a member of a professional or civic organization could qualify you for a break on car insurance.
  • Claim Free - Drivers who don't have accidents can save substantially as compared to drivers who are more careless.

A little note about advertised discounts, most credits do not apply to your bottom line cost. Some only reduce the price of certain insurance coverages like liability, collision or medical payments. So even though they make it sound like having all the discounts means you get insurance for free, you won't be that lucky. Any amount of discount will help reduce your overall premium however.

Electra car insurance comparison

How to Lower your Car Insurance Rates

Smart consumers have a good feel for some of the elements that come into play when calculating the rates you pay for car insurance. When you know what positively or negatively impacts premium levels empowers consumers to make smart changes that may reward you with big savings.

The list below includes a few of the "ingredients" used by your company to calculate rates.

  • Older drivers pay less - Youthful drivers in Texas tend to be more careless when driving so car insurance rates are higher. If you've ever had to add a youthful driver onto a policy can be quite pricey. More mature drivers are viewed as being more responsible, file fewer claims and receive fewer citations.
  • Lower miles equals lower premium - The more you drive in a year's time the more you will pay for car insurance. Almost all companies charge to insure your cars based upon how you use the vehicle. Vehicles not used for work or commuting qualify for better rates than those used for commuting. Ask your agent if your car insurance policy properly reflects the correct driver usage.
  • Car features impact rates - Purchasing a vehicle with anti-theft technology or alarm system can help lower your rates. Anti-theft devices like LoJack tracking devices, vehicle tamper alarm systems or GM's OnStar system all aid in stopping your car from being stolen.
  • Discounts for multiple policies - The majority of companies will give a discount to insureds who carry more than one policy, otherwise known as a multi-policy discount. Even if you're getting this discount it's in your best interest to compare other company rates to verify if the discount is saving money.
  • Don't skimp on liability - The liability section of your policy is the protection if ever you are found liable for personal injury or accident damage. It will provide for a legal defense which can cost thousands of dollars. This coverage is very inexpensive compared to insuring for physical damage coverage, so buy as much as you can afford.

How to know if you need help

When it comes to buying the right insurance coverage for your personal vehicles, there really is no perfect coverage plan. Everyone's situation is unique and a cookie cutter policy won't apply. These are some specific questions can help discover whether your personal situation could use an agent's help.

  • Do I pay less if my vehicle is kept in my garage?
  • Who is covered when they drive my vehicle?
  • Am I covered when pulling a rental trailer?
  • Do I need PIP (personal injury protection) coverage in Texas?
  • Am I covered by my employer's commercial auto policy when driving my personal car for business?
  • Do I qualify for additional discounts?
  • What companies insure drivers after a DUI or DWI?

If you don't know the answers to these questions but you know they apply to you then you might want to talk to an insurance agent. If you don't have a local agent, fill out this quick form or you can go here for a list of companies in your area.

Are car insurance companies telling the truth?

Car insurance companies such as Progressive, GEICO, Allstate and State Farm regularly use ads on TV and radio. They all seem to say the same thing about savings if you move your coverage to them. But how can every company claim to save you money? This is how they do it.

All the different companies have a preferred profile for the type of customer that earns them a profit. For example, a desirable insured might be over the age of 40, has no prior claims, and has a short commute. Any driver who fits that profile will get very good rates and most likely will save a lot of money.

Consumers who don't qualify for this ideal profile will have to pay higher rates which usually ends up with the customer not buying. The ads say "drivers who switch" not "people who quote" save that much money. This is how companies can truthfully make the claims of big savings.

Because of the profiling, drivers should get a wide range of price quotes. You cannot predict which insurance companies will fit your personal profile best.

Learn more about car insurance in Texas

Additional information can be found on the website for the Texas Department of Insurance. Click here for link. Visitors are able to read enforcement actions against agents and companies, file complaints about an insurance agent or broker, view a list of available companies, and read consumer alerts.

Also read more on this Car Insurance FAQ and this page of insurance agents in Electra.

Texas car insurance quotes

Shop smart and save

As you shop your coverage around, do not skimp on coverage in order to save money. There are many occasions where consumers will sacrifice physical damage coverage only to discover later that saving that couple of dollars actually costed them tens of thousands. Your aim should be to find the BEST coverage for the lowest price.

The cheapest car insurance is possible both online as well as from independent agents in Electra, and you need to comparison shop both to get a complete price analysis. Some insurance providers don't offer you the ability to get quotes online and most of the time these regional insurance providers sell through independent agents.