How to Know You're Paying Too Much for Auto Insurance in Buffalo Gap

No one in their right mind looks forward to paying for auto insurance, in particular when the price is too high.

Big companies like GEICO and Progressive promote their brand names with ads 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 this information. Finding affordable coverage in Buffalo Gap is quite easy. Nevertheless, Texas drivers do need to know the way insurance companies price online insurance and take advantage of how the system works.

How much can you save with discounts?

Properly insuring your vehicles can get expensive, but there are discounts available that many people don't even know exist. Larger premium reductions will be automatically applied at the time you complete a quote, but some must be asked for prior to getting the savings.

  • Federal Employees - Active or retired federal employment can earn a discount up to 10% with a few auto insurance companies.
  • Early Signing - Some companies give discounts for switching policies prior to your current policy expiring. This can save 10% or more.
  • Multiple Policy Discount - If you have multiple policies with one company you may earn 10% to 20% off each policy.
  • Accident Free - Good drivers with no accidents can earn big discounts when compared to drivers who are more careless.
  • Defensive Driver - Taking a course in driver safety can save you 5% or more if you qualify.
  • Good Student - Performing well in school can save 20 to 25%. The discount lasts until age 25.
  • Clubs and Organizations - Participating in a civic or occupational organization may earn a discount when shopping for auto insurance.

It's important to understand that some of the credits will not apply to the entire policy premium. A few only apply to specific coverage prices like comp or med pay. So even though it sounds like you would end up receiving a 100% discount, it doesn't quite work that way. Any qualifying discounts will reduce the amount you have to pay.

What determines how much you pay?

Smart consumers have a good feel for the factors that go into determining the price you pay for auto insurance. Having a good understanding of what determines base rates allows you to make educated decisions that will entitle you to better auto insurance rates.

  • You might want pay the small claims yourself - Companies in Texas generally give cheaper rates to policyholders who file claims infrequently. If you file claims often, you can look forward to either higher rates or even cancellation. Car insurance is designed for larger claims.
  • Traffic violations increase rates - Even one speeding ticket can increase rates twenty percent or more. Good drivers get better rates than bad drivers. If you have serious violations such as DWI, reckless driving or hit and run convictions may find they need to submit a SR-22 or proof of financial responsibility with their state DMV in order to continue driving.
  • Bundling policies can get discounts - Most insurance companies provide better rates to customers who have multiple policies with them such as combining an auto and homeowners policy. Discounts can be 10 percent or more. If you currently are using one company, it's still a good idea to compare other company rates to make sure you are getting 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 pay the highest average rates due to job stress and long work hours. Other occupations like scientists, historians and homemakers have the lowest average rates.

How much car insurance do I need?

When it comes to buying proper insurance coverage for your vehicles, there really is not a one size fits all plan. Your needs are not the same as everyone else's and your policy should reflect that. For example, these questions may help highlight if your insurance needs would benefit from professional advice.

  • Am I covered if I drive in a foreign country?
  • Does my car insurance cover rental cars?
  • Am I covered when driving in Canada or Mexico?
  • Are there companies who specialize in insuring high-risk drivers?
  • Should I have combined single limit or split liability limits?
  • Why am I required to buy high-risk coverage?

If you can't answer these questions, then you may want to think about talking to an agent. To find an agent in your area, simply complete this short form or you can also visit this page to select a carrier

Save 15 percent in 15 minutes? Is it for real?

Auto insurance providers like Progressive, Allstate and GEICO constantly bombard you with television and radio advertisements. They all have a common claim of big savings if you switch to them. How can each company make almost identical claims? It's all in the numbers.

Different companies have a certain "appetite" for the type of driver that earns them a profit. An example of a driver they prefer could possibly be a mature driver, a clean driving record, and has great credit. A driver that hits that "sweet spot" receives the best rates and is almost guaranteed to save when they switch companies.

Potential customers who don't meet the requirements will be quoted a more expensive rate and this can result in the driver buying from a lower-cost company. Company advertisements say "customers who switch" but not "drivers who get quotes" save money. That is how insurance companies can confidently advertise the savings.

This emphasizes why drivers should compare as many rates as you can. It is impossible to predict which company will give you the biggest savings.

Additional auto insurance information is available on the website for the Texas Department of Insurance found here. Texas consumers can download brochures, file complaints about a company, read consumer alerts, and read industry bulletins.

Texas auto insurance

The best insurance company isn't always the cheapest

In this article, we presented a lot of techniques to reduce auto insurance prices online. The key thing to remember is the more price quotes you have, the better your comparison will be. Drivers may discover the best price on auto insurance is with a small mutual company. Regional companies can often provide lower rates in certain areas compared to the large companies like .

As you prepare to switch companies, it's a bad idea to skimp on coverage in order to save money. There are too many instances where someone dropped liability limits or collision coverage only to find out that the small savings ended up costing them much more. Your strategy should be to buy enough coverage at the best price while still protecting your assets.