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

Are you tired of not being able to afford each month for car insurance? You are no different than the majority of other car owners in Texas. Numerous battle for your hard-earned dollar, so it's not easy to compare every and get the best coverage at the lowest rate

More discounts equal less premium

Car insurance companies don't list every discount in an easy-to-find place, so we took the time to find both well-publicized as well as the least known discounts you could be receiving. If they aren't giving you every credit available, you are throwing money away.

Student Driver Training - Make teen driver coverage more affordable by requiring them to successfully complete driver's ed class in high school.
Low Mileage Discounts - Keeping the miles down can earn a substantially lower rate.
Employee of Federal Government - Active or retired federal employment can save as much as 8% 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%.
Multiple Policy Discount - If you have multiple policies with the same insurance company you will save up to 20% off your total premium.

It's important to note that some credits don't apply to the entire cost. The majority will only reduce individual premiums such as liability and collision coverage. So even though it sounds like it's possible to get free car insurance, you're out of luck.

Understand what determines the rate you pay

Smart consumers have a good feel for the factors that come into play when calculating the price you pay for auto insurance. Understanding what influences your rates helps enable you to make changes that will entitle you to lower auto insurance prices.

The list below includes a few of the "ingredients" that factor into prices.

An active claims history can cost you - Companies in Texas generally give better rates to drivers who do not rely on their insurance for small claims. If you frequently file small claims, you can expect higher rates. Auto insurance is designed for major claims that would cause financial hardship.
Equipment add-ons that lower auto insurance rates - Driving a car with an alarm system can save you a little every year. Anti-theft devices such as vehicle immobilizer systems, General Motors OnStar and LoJack tracking systems all hinder auto theft.
Liability insurance protects assets - 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 for a legal defense starting from day one. Liability insurance is quite affordable compared to insuring for physical damage coverage, so do not skimp.
Rates may be lower depending on your job - Careers like lawyers, social workers and accountants are shown to have higher rates than average because of high stress and lengthy work days. On the flip side, jobs such as farmers, athletes and the unemployed pay the least.
Sex matters - The statistics show that men are more aggressive behind the wheel. However, don't assume that men are WORSE drivers than women. Women and men cause accidents in similar percentages, but the men cause more damage and cost insurance companies more money. Men also statistically get more serious tickets such as DWI and reckless driving.
Rural vs Urban Areas - Being located in a rural area can save you money when insuring your vehicles. Less people living in that area means reduced accidents. Drivers who live in large Texas cities regularly have traffic congestion and longer commutes to work. Higher commute times translates into higher accident risk.
Careful drivers pay lower rates - A bad driving record impacts your car insurance rates tremendously. Even one moving violation may increase your cost twenty percent or more. Drivers with clean records have lower premiums than people who have multiple driving citations. If you have severe violations like hit and run, DWI or reckless driving convictions may find they need to file a proof of financial responsibility form (SR-22) with their state DMV in order to drive a vehicle legally.

Switch companies and save? Really?

Texas consumers get pounded daily by advertisements for the lowest price auto insurance from companies such as State Farm, Allstate and GEICO. They all have a common claim that you can save if you move your policy.

How do they all make almost identical claims?

All companies can use profiling for the right customer that earns them a profit. For example, a driver they prefer could possibly be between the ages of 30 and 50, has no tickets, and drives less than 7,500 miles a year. A customer getting a price quote that hits that "sweet spot" gets the lowest rates and therefore will cut their rates substantially.

Potential customers who do not match the "perfect" profile will be quoted a more expensive rate and this can result in the driver buying from a lower-cost company. Company advertisements say "customers that switch" not "everyone that quotes" save that kind of money. That's why insurance companies can advertise the way they do. This emphasizes why drivers should compare as many rates as you can. It's impossible to know the company that will provide you with the cheapest rates.

Additional detailed information can be found at the Texas Department of Insurance website. Texas consumers can download brochures, view a list of available companies, find out which companies have the most complaints, and read industry bulletins.

A tidy conclusion

Lower-priced auto insurance is possible online in addition to many Waco insurance agents, and you should compare price quotes from both to have the best rate selection. Some auto insurance companies do not provide you the ability to get quotes online and these regional insurance providers work with independent agents.

When shopping online for auto insurance, you should never skimp on coverage in order to save money. There have been many situations where an insured dropped physical damage coverage only to regret at claim time that a couple dollars of savings turned into a financial nightmare. The proper strategy is to buy the best coverage you can find at a price you can afford while still protecting your assets.