Car insurance is an unavoidable expense if you want to safely and legally drive your vehicle in Texas. As with every required ongoing bill, it is in your best interest to keep that expense at an affordable price-point. The following tips will help Texas drivers save on their car insurance.
Shop Around
Your current car insurance provider may have been the most affordable when you originally purchased the policy, but your situation and insurance rates change over time. Whenever you have a big change in your life such as marriage, a new car, or an improvement to your credit standing, you should take the time to shop around for a more affordable car insurance company. A change as seemingly insignificant to your car insurance as moving to a more rural neighborhood could save you on monthly premium payments.
Ask about Discounts
Insurance companies offer a varying catalog of discounts to its customers. These discounts can change over time. Periodically review your car insurance policy, both on your own and with a representative from your insurance company, to ensure you aren't missing any of the discounts for which you qualify.
Higher Deductible
As a general rule, a higher insurance deductible means a lower monthly premium. The higher deductible will mean that, in the event of a claim, you will need to pay more out of pocket for repairs or maintenance. However, by choosing the lower monthly payment you are guaranteed to save money every month. Avoid being blindsided by the sizable deductible payment after a claim by putting five to ten percent of the monthly premium savings aside for car related emergencies. You will still be saving money overall, and will be prepared for the worst case scenario.
Manage Your Mileage
Statistically speaking, driving less means you are less likely to get in an accident and your car is less likely to breakdown. Careful route planning and carpooling whenever possible will help you reduce the amount of mileage you rack up each month. Check with your insurance provider to see if low mileage is a qualification for premium or deductible discounts.
Drop Unnecessary Coverage
The state of Texas requires drivers to be covered by at least $60,000 in injury and $25,000 in property damage liability insurance. Anything above and beyond that basic minimum liability coverage is optional, and adds to your monthly insurance costs. For example, under-insured and uninsured motorist coverage is often the most expensive optional coverage and the least likely to be needed. Dropping optional insurance coverage can make much needed room in your monthly budget easily and legally.
Every driver on the road in Texas is legally required to have a minimum level of car insurance. Thoughtful policy shopping, controlled mileage, and safe driving habits will help you save money on your car insurance.
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