Never Buy Plano, TX Auto Insurance Without Knowing These Money Saving Tips

Consumers who are new to the process of comparing insurance rates online could find shopping for cut-rate Plano auto insurance is harder than they anticipated.

You should take the time to shop coverage around every six months since rates are rarely the same from one policy term to another. If you had the lowest price last year you will most likely find a better rate today. So forget anything you know (or think you know) about auto insurance because I’m going to teach you one of the quickest ways to remove unneeded coverages and save money.

The purpose of this post is to let you in on the most effective way to quote insurance and some money-saving tips. If you currently have car insurance, you stand a good chance to be able to lower your premiums substantially using this strategy. Texas drivers just need to understand the most effective way to compare price quotes online.

Don’t miss out on these money-saving discounts

Insurance can be prohibitively expensive, but you may find discounts that you may not even be aware of. A few discounts will automatically apply at the time you complete a quote, but some may not be applied and must be inquired about before they will apply. If you don’t get every credit you qualify for, you are throwing money away.

• Anti-lock Brakes – Cars that have steering control and anti-lock brakes can avoid accidents and will save you 10% or more.
• Good Student Discount – Performing well in school can earn a discount of 20% or more. The good student discount can last well after school through age 25.
• Employee of Federal Government – Being employed by or retired from a federal job may qualify you for a discount with certain companies.
• Organization Discounts – Participating in a qualifying organization is a good way to get lower rates on auto insurance.
• Use Seat Belts – Requiring all passengers to wear their seat belts can save 10% or more on the medical payments or PIP coverage costs.
• More Vehicles More Savings – Insuring multiple cars or trucks on one policy qualifies for this discount.
• Student in College – Any of your kids living away from home attending college and don’t have a car may be able to be covered for less.

It’s important to understand that many deductions do not apply to the entire policy premium. A few only apply to the price of certain insurance coverages like comp or med pay. So when the math indicates all the discounts add up to a free policy, it just doesn’t work that way. But any discount will reduce your premiums.

Why you might pay higher rates in Plano

Consumers need to have an understanding of the rating factors that help determine the rates you pay for auto insurance. Understanding what influences your rates enables informed choices that may reward you with big savings.

The following are a few of the “ingredients” auto insurance companies consider when setting rates.

• Having a spouse can save you money – Having a spouse can actually save you money on auto insurance. Having a spouse means you’re more mature it has been statistically shown that married drivers get in fewer accidents.
• Frequent auto insurance claims increase rates – If you are a frequent claim filer, you can expect higher rates. Auto insurance companies in Texas generally give cheaper rates to insureds who do not rely on their insurance for small claims. Insurance coverage is meant to be used in the event of the bigger claims that can’t be paid out-of-pocket.
• More people means more accidents – Residing in a small town is a positive aspect when it comes to auto insurance. City drivers have more traffic problems and a longer drive to work. Lower population means reduced accidents and also fewer theft and vandalism claims.
• Lower rates with optional equipment – Driving a car that has an advanced theft prevention system can help lower your rates. Theft prevention devices such as vehicle immobilizer systems, General Motors OnStar and LoJack tracking systems all hinder your car from being stolen.
• More miles equals more premium – The higher the mileage driven in a year’s time the higher your rate. The majority of insurers apply a rate based on their usage. Cars used primarily for pleasure use qualify for better rates compared to those used for work or business. Double check that your auto insurance declarations sheet properly reflects the correct usage for each vehicle.
• Extra add-on coverages are wasting money – There are many add-on coverages that can waste your money on your auto insurance policy. Things like vanishing deductibles, accident forgiveness and term life insurance may be wasting your money. These coverages may sound good at first, but if they’re wasting money remove them from your policy.

Can switching companies really save?

Consumers in Texas can’t get away from ads for car insurance savings by companies like 21st Century, Allstate and State Farm. They all have a common claim about savings if you move to them.

How do they all claim to save you money? It’s all in the numbers.

Insurance companies have a preferred profile for the type of customer that makes them money. For instance, a desirable insured could be between 25 and 40, is a homeowner, and has a high credit rating. A driver who fits that profile receives the best rates and is almost guaranteed to save when switching.

Potential insureds who don’t qualify for the “perfect” profile will have to pay more money which leads to the customer not buying. Company advertisements say “drivers who switch” but not “drivers who get quotes” save that much. That’s why insurance companies can claim big savings.

Because of the profiling, it is so important to get a wide range of price quotes. Because you never know which insurance companies will provide you with the cheapest rates.

Additional information can be found on the Texas Department of Insurance website located here. Texas drivers can learn about insurance regulations, file complaints about a company, and read enforcement actions against agents and companies.

The articles below may also help you learn more about auto insurance in Plano

• New Strategies for Buying Plano Auto Insurance for Less Money

Smart shoppers get results

Insureds change insurance companies for any number of reasons including being labeled a high risk driver, denial of a claim, delays in paying claims and even poor customer service. No matter why you want to switch, switching auto insurance companies is pretty simple and you could end up saving a buck or two.

Cheaper auto insurance is definitely available online and also from your neighborhood Plano agents, and you should be comparing both in order to have the best price selection to choose from. Some insurance companies may not provide online price quotes and most of the time these small insurance companies sell through independent agents.

As you restructure your insurance plan, do not sacrifice coverage to reduce premiums. There have been many situations where an insured cut full coverage to discover at claim time they didn’t purchase enough coverage. The aim is to get the best coverage possible at the best price.