9 Discounts Sweeny Shoppers Forget when Comparing Car Insurance

Expensive car insurance can take a big chunk out of your savings account and force you to make sacrifices. Shopping your coverage around is free, only takes a few minutes, and is a good way to cut your insurance bill. Insurance companies such as GEICO and Progressive persitently shower you with advertising and it is difficult to sift through the bull and effectively compare rates to find the best deal.

It's important to shop coverage around yearly since rates are constantly changing. If you had the best rates six months ago a different company probably has better rates today. You'll find quite a bit of inaccurate information about car insurance on the web, but we're going to give you some great ways to find cheap car insurance.

More discounts equal less premium

Companies that sell car insurance don't always advertise every available discount in a way that's easy to find, so the following is a list of some of the more common and also the lesser-known savings tricks you should be using. If you aren't receiving every discount you deserve, you are throwing money away.

  • Good Student Discount - Performing well in school can get you a discount of up to 25%. The good student discount can last up to age 25.
  • New Car Discount - Insuring a new car is cheaper since new cars are generally safer.
  • Drivers Ed for Students - Make teen driver coverage more affordable by requiring them to take driver's ed class in high school.
  • Government Employees - Active or retired federal employment can save as much as 8% with certain companies.
  • Anti-theft Discount - Cars that have factory anti-theft systems help deter theft and earn discounts up to 10%.
  • Defensive Driving Course - Completing a driver safety course could cut 5% off your bill if you qualify.
  • Anti-lock Brake System - Cars that have steering control and anti-lock brakes prevent accidents and qualify for as much as a 10% discount.
  • Pay Upfront and Save - If you pay your entire premium ahead of time instead of monthly or quarterly installments you could save up to 5%.
  • 55 and Retired - If you qualify as a senior citizen, you can possibly qualify for a small decrease in premiums.

It's important to note that most discount credits are not given to your bottom line cost. The majority will only reduce specific coverage prices like medical payments or collision. Even though it may seem like you can get free auto insurance, you're out of luck.

Texas car insurance

It's not one size fits all

When it comes to buying coverage for your personal vehicles, there really is not a "perfect" insurance plan. Your needs are not the same as everyone else's so your insurance should reflect that Here are some questions about coverages that can help discover if you would benefit from professional advice.

  • Should I buy only the required Texas minimum liability coverage?
  • Who is covered when they drive my vehicle?
  • Is my cargo covered for damage or theft?
  • Am I covered if I drive in a foreign country?
  • Does my personal auto insurance policy cover using my vehicle for business use?
  • Do I really need UM/UIM coverage?
  • Am I covered when renting a car or should I buy coverage from the car rental agency?

If you're not sure about those questions but a few of them apply, then you may want to think about talking to an insurance agent. To find an agent in your area, complete this form or click here for a list of car insurance companies in your area. It's fast, doesn't cost anything and you can get the answers you need.

Switch companies and save? Really?

Consumers get pounded daily by advertisements for car insurance savings from the likes of State Farm and Allstate. All the ads make an identical promise that you can save if you move your coverage to them.

How can each company make the same claim? It's all in the numbers.

All companies have a preferred profile for the type of customer that earns them a profit. A good example of a preferred risk could be a mature driver, has no prior claims, and has a high credit rating. Any new insured who meets those qualifications gets the lowest rates and therefore will save when they switch companies.

Consumers who do not match the requirements will be charged higher prices and ends up with business going elsewhere. Company advertisements say "customers who switch" not "everyone that quotes" save that much money. This is how insurance companies can state the savings. That is why drivers should get quotes from several different companies. It's just too difficult to predict which insurance companies will have the lowest rates.

Additional detailed information can be read at the Texas Department of Insurance website. Consumers can file complaints about a company, file complaints about an insurance agent or broker, download brochures, and read consumer alerts.

Texas car insurance quotes

Best coverage at the best price

You just learned some good ideas how you can reduce car insurance prices online. The key concept to understand is the more you quote, the better your chances of lowering your rates. Consumers could even find that the best price on car insurance is with a small mutual company. Regional companies often have lower prices on specific markets as compared to the big name companies such as .

As you restructure your insurance plan, it's a bad idea to skimp on coverage in order to save money. There have been many cases where consumers will sacrifice collision coverage and discovered at claim time that they should have had better coverage. Your goal should be to buy the best coverage you can find at the best price, not the least amount of coverage.