Tightwads Guide for Saving on Fredericksburg Auto Insurance

Having to pay for overpriced auto insurance can empty your bank account and make it hard to pay other bills. Comparing price quotes is a great way to reduce premiums and put more money in your pocket.

Popular companies such as GEICO and Progressive increase brand awareness with ad campaigns and it can be hard to sift through the bull and find the best price available.

If you currently have car insurance, you will be able to save some money using these methods. Buying car insurance in Fredericksburg is quite easy. Nevertheless, Texas drivers do need to know the way companies price online insurance and take advantage of how the system works.

Save big with these discounts

Car insurance companies don't always advertise every discount in a way that's easy to find, so here is a list both well-publicized and the more hidden discounts you could be receiving.

Payment Discounts - By paying your policy upfront instead of paying each month you may reduce your total bill.
Distant Student - Youth drivers who live away from home and do not have a car may qualify for this discount.
Multiple Policy Discount - When you combine your home and auto insurance with the same company you could get a discount of 10% to 20% off each policy.
No Accidents - Drivers who don't have accidents can earn big discounts when compared to bad drivers.
Multi-car Discount - Insuring more than one vehicle on the same auto insurance policy could earn a price break for each car.
Paperwork-free - Some insurance companies will discount your bill up to fifty bucks simply for signing digitally online.
Low Mileage Discounts - Driving fewer miles can qualify you for a substantially lower rate.
Defensive Driver - Taking a course in driver safety could cut 5% off your bill and easily recoup the cost of the course.

Consumers should know that some credits don't apply to the overall cost of the policy. Most only apply to the cost of specific coverages such as liability and collision coverage. Just because you may think you would end up receiving a 100% discount, companies don't profit that way.

To see a list of insurance companies offering auto insurance discounts in Fredericksburg, click here.

How to Buy Fredericksburg Auto Insurance Online

There are several ways of comparing price quotes from local Fredericksburg auto insurance companies. The best method to find the cheapest insurance rates is to use the internet to compare rates. This can be done in several different ways.

The best way to compare a lot of rates at once is to use a rate comparison form (click to open form in new window). This type of form eliminates the need for repetitive form entry for each company. One form compares rates direct from many companies.
A more difficult way to get quotes online is going to the website of each company to complete their respective quote request forms. For examples sake, let's say you want comparison quotes from , and . You would have to take the time to go to each site and enter your information, which is why most consumers use the first method.

To view a list of companies in Fredericksburg, click here.
The most time-consuming way to compare rates is to waste gas driving to local insurance agencies. Buying insurance online has reduced the need for local agents unless you prefer the professional guidance of a licensed agent. It is possible to obtain prices from the web and still use a local agent. We'll cover that shortly.

Whichever method you choose, make darn sure you compare exactly the same coverage limits and deductibles on every quote you get. If you use different liability limits it will be next to impossible to determine which rate is truly the best in Fredericksburg. Slightly different coverage limits may cause a big price difference. And when comparison shopping, obtaining a wide range of quotes will improve the odds of getting the best rates.

Good Decisions Result in Lower Rates

An important part of buying insurance is that you know the factors that go into determining the price you pay for auto insurance. Having a good understanding of what determines base rates enables informed choices that will entitle you to better auto insurance rates.

Listed below are some of the factors auto insurance companies consider when setting prices.

Special features that cut premiums - Purchasing a vehicle that has an advanced theft prevention system can help bring down rates. Anti-theft features like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping auto theft.
Mature drivers pay less - More mature drivers are more cautious drivers, tend to cause fewer accidents and receive fewer citations. Teen drivers are statistically proven to get distracted easily when driving and because of this, their auto insurance rates are much higher.
Discounts for multiple policies - Most insurance companies provide better rates to customers who carry more than one policy such as combining an auto and homeowners policy. Discounts can be 10 percent or more. If you currently are using one company, you may still want to compare rates to ensure the best deal.
Your job and insurance rates - Did you know that where you work can have an impact on rates? Careers like doctors, social workers and dentists tend to have the highest average rates attributed to job stress and long work hours. Other professions such as pilots, historians and homemakers receive lower rates.
Protect your assets with liability insurance - Liability insurance is the protection when a court rules you are at fault for causing damage or personal injury in an accident. It will provide legal defense coverage up to the limits shown on your policy. Liability insurance is quite affordable compared to physical damage coverage, so do not skimp.

But I don't know anything about car insurance

When choosing proper insurance coverage for your personal vehicles, there really is not a cookie cutter policy. Each situation is unique and your policy should reflect that. These are some specific questions may help you determine if your situation might need an agent's assistance.

What can I do if my company won't pay a claim?
What are Texas no-fault laws?
Am I covered when driving in Canada or Mexico?
Will I be non-renewed for getting a DUI or other conviction?
Am I covered if I wreck a rental car?
Does my liability insurance cover pulling a trailer or camper?
Does my personal policy cover me when driving my company car?
Is my vehicle covered for flood damage?

If you can't answer these questions but you think they might apply to your situation, then you may want to think about talking to a licensed insurance agent. To find lower rates from a local agent, simply complete this short form or you can also visit this page to select a carrier

Auto insurance ads bend the truth

Auto insurance providers like State Farm, Allstate and GEICO constantly bombard you with ads on TV and radio. They all have a common claim of big savings if you switch to their company. How can each company make almost identical claims?

Different companies have a preferred profile for the driver that is profitable for them. An example of a driver they prefer could possibly be between the ages of 30 and 50, insures multiple vehicles, and has a short commute. A customer getting a price quote that hits that "sweet spot" is entitled to the best price and most likely will save when they switch companies.

Potential customers who fall outside the requirements will be quoted a higher premium and this can result in the driver buying from a lower-cost company. The ads state "people who switch" not "people who quote" save that much. This is how insurance companies can confidently make the claims of big savings. This emphasizes why drivers must compare as many rates as you can. It's impossible to know which insurance companies will fit your personal profile best.

Final considerations

As you shop your coverage around, it's a bad idea to reduce coverage to reduce premium. There have been many situations where drivers have reduced comprehensive coverage or liability limits to discover at claim time that saving that couple of dollars actually costed them tens of thousands. The proper strategy is to buy a smart amount of coverage at an affordable rate while still protecting your assets.

Cost effective auto insurance can be found online and also from your neighborhood Fredericksburg agents, and you should compare price quotes from both to have the best rate selection. Some insurance providers may not provide the ability to get a quote online and these smaller companies work with independent agents.

More tips and info about auto insurance is available at the Texas Department of Insurance website. Texas consumers can view a list of available companies, read enforcement actions against agents and companies, read consumer alerts, and read industry bulletins.