How to Know You're Wasting Money for Car Insurance in Nederland

Did you fall for a flashy sales pitch and buy overpriced car insurance? Trust us, you are not the only one feeling buyer's remorse.

Because you have many insurance companies to choose from, it can be challenging to choose the best provider.

It's important to do rate comparisons every six months because rates are constantly changing. Even if you got the lowest price a year ago you may be paying too much now. Block out anything you think you know about car insurance because you're about to learn the only way to reduce your cost while improving coverage.

How to Compare Car Insurance Quotes in Nederland, Texas

Comparing car insurance rates can take hours if you don't know the easiest way. You could spend your day discussing policy coverages with insurance agencies in Nederland, or you could save time and use the internet for quick rates.

All the larger companies take part in a program that allows shoppers to send in one quote, and each company can provide price quotes determined by their information. This eliminates the need for quotation requests for each company you want a rate for. To submit your quote information now, click here (opens in new window).

One minor caviat to pricing coverage this way is you are unable to specify which companies you will receive quotes from. If you prefer to choose individual companies to compare, we put together a list of car insurance companies in Texas. Click here for list of insurance companies in Texas.

Which method you use is up to you, but ensure you are comparing apples-to-apples coverage limits and deductibles with every price quote. If your comparisons have different liability limits it's impossible to find the best deal in Nederland. Just a small difference in coverages can mean a large discrepancy in price. Just remember that more quotes gives you a better chance of getting the best rates.

Texas car insurance

Why some people pay less for insurance in Nederland

It's important that you understand some of the elements that go into determining your car insurance rates. When you know what positively or negatively impacts premium levels allows you to make educated decisions that can help you get better car insurance rates.

  • How's your driving record? - Your driving record has a big impact on rates. Good drivers have lower premiums than bad drivers. Just one moving violation can increase rates forty percent or more. Drivers who get serious violations like DWI, reckless driving or hit and run convictions may be required to submit a SR-22 or proof of financial responsibility with their state motor vehicle department in order to continue driving.
  • Do you know your deductibles? - Physical damage coverage, otherwise known as comp (or other than collision) and collision, protects your car from damage. Examples of covered claims are a windshield shattered by a rock, collision with an animal, or theft. Your deductibles are the amount of money you are willing to pay in the event of a claim. The more you're willing to pay, the less your car insurance will be.
  • Your credit rating is important - Your credit score is a important factor in calculating your car insurance rates. If your credit rating is lower than you'd like, you could be paying less to insure your by improving your rating. Drivers with high credit scores tend to file fewer claims and have better driving records than drivers who have poor credit.
  • What type of vehicle do you drive? - The performance level of the car you drive makes a big difference in determining your rates. The lowest rates are generally reserved for low performance passenger vehicles, but other factors influence the final cost greatly.
  • How many coverages with the same company - Most companies give discounts to policyholders who have multiple policies with them, otherwise known as a multi-policy discount. Even if you're getting this discount you still need to shop around to make sure you are getting the best deal. You may still be able to find a better deal by insuring with multiple companies.
  • Safer occupants lowers premiums - Safer cars are cheaper to insure. Safer cars result in less severe injuries and fewer injuries means lower claim amounts passed on to you as lower rates.

How much can you save with discounts?

Car insurance companies don't always list every available discount very well, so we researched some of the more common as well as the least known car insurance savings.

  • Discount for Good Grades - Getting good grades can save 20 to 25%. Earning this discount can benefit you until age 25.
  • Multi-car Discount - Buying insurance for more than one vehicle on one policy may reduce the rate for each vehicle.
  • Anti-lock Brake Discount - Vehicles with anti-lock braking systems are safer to drive and will save you 10% or more.
  • Early Signing - Some insurance companies reward drivers for switching to them before your current policy expires. This can save 10% or more.
  • Anti-theft System - Anti-theft and alarm systems are stolen less frequently and will save you 10% or more.
  • Military Rewards - Having a deployed family member could mean lower rates.

A little note about advertised discounts, most credits do not apply to all coverage premiums. A few only apply to individual premiums such as medical payments or collision. So even though they make it sound like you would end up receiving a 100% discount, you won't be that lucky.

For a list of providers offering car insurance discounts in Texas, follow this link.

Even more information is located at the Texas Department of Insurance website. Consumers can file complaints about a company, report car insurance fraud, find out industry alerts, and learn about specific coverages.

Other useful links include NAIC.org's Understanding your Policy and this directory of insurance agents in Nederland Texas.

Final considerations

We just showed you a lot of information how to lower your car insurance rates. The key thing to remember is the more you quote, the better chance you'll have of finding lower rates. Drivers may discover the best price on car insurance is with some of the lesser-known companies. Smaller companies may cover specific market segments cheaper compared to the large companies like .

Cheaper car insurance can be found from both online companies and with local Nederland insurance agents, and you need to price shop both to have the best rate selection. Some companies do not offer online quoting and many times these small, regional companies only sell through independent insurance agents.

While you're price shopping online, don't be tempted to reduce needed coverages to save money. There have been many cases where someone sacrificed liability coverage limits only to discover later they didn't purchase enough coverage. Your goal should be to buy enough coverage at a price you can afford, not the least amount of coverage.