Category: Car Insurance Agency

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Factors to Consider When Needing to Buy Auto Insurance

Everyone hopes to find car insurance at the most affordable price possible.

With many auto insurance agencies forced to raise their rates, premium rates have become more important than ever for some people.

How can drivers get the most from their car insurance agency at the lowest rates?

Understanding what factors contribute to premium rates is a good start!

  • State and City - Different states have different laws regarding car insurance minimums, and how they calculate their premium rates. The city where a driver lives can affect rates as well, with premiums typically being higher for those living in more populated areas and lower in more rural locations. 
  • Car Make, Model, and Year - Car insurance agencies must consider all vehicle details when calculating premiums, as insurance rates are relative to the cost of repairing or replacing different vehicles. 
  • Driving Record - The better a person’s driving record is, the more favorably that detail is weighed when their premium rate is calculated. Most auto insurance agencies reward good driving records with lower rates. This also means that drivers with citations or accidents on their record can expect to pay more, as they are viewed as being a higher insurance risk. 
  • Credit Rating - Car insurance agencies consider a customer’s likelihood to stay current on paying their insurance bill by considering their credit rating. Drivers who have had policy cancellations due to non-payment of their bill might have difficulty finding an auto insurance agency willing to carry them. 
  • Required Coverage - Every driver needs different car insurance coverage depending on their vehicle, location, how often and how far they drive, the minimum protection they are required to have in their state, and the amount of protection they wish to carry if they want more than the minimum.
  • Available Discounts - On the brighter side of calculating car insurance premium rates, drivers seeking affordable insurance should always inquire about offered discounts and other ways that insurance agents can help them lower their premium bill. Many auto insurance carriers offer good driver discounts, as well as money off for driving vehicles with safety features, attending driver courses, and for insuring home and auto on the same policy.

Car insurance is a necessary and required expense for all Texas drivers.

When searching for the most affordable policies, drivers should consider these factors and discuss with auto insurance agents how to get the most protection for the lowest premium.

Be aware of what matters when calculating insurance rates and take steps to become a lower insurance risk to achieve better discounts and a lower car insurance rate!

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Why Is Texas Car Insurance So Expensive These Days?

The cost of auto insurance in Texas is constantly rising, especially over the past few years.

Even worse, average car insurance rates in Texas are higher, in some cases as much as 150% higher than the national average. 

Naturally, customers of car insurance agencies throughout the state want to know why premiums are rising faster in Texas than in other states.

The answers lie in a few different reasons why Texas is unique in comparison to many other states.

  • Large Cities - Texas is home to three of the top 10 biggest cities in the country. Bigger cities mean more people driving, more congestion, and a greater incidence of auto accidents. 
  • More Drivers - In addition to having numerous large populous cities, Texas’ larger population means there are just more drivers in the state. As the population increases, so does the number of drivers and also the number of car insurance claims filed every year in the state. Fatal accidents alone have increased by nearly 10% in the last half-decade alone. 
  • More Uninsured - Texas has a very high rate of uninsured drivers who drive up the cost of auto insurance policies for those who are insured. Car insurance agencies and the companies they represent continually paying out more for claims due to uninsured motorists must then charge more across the board to stay in business. Unfortunately, higher car insurance rates then contribute to more un and under-insured drivers taking to the road. 
  • Severe Weather - The unpredictable and sometimes severe weather in Texas that leads to flooding and other disasters contribute greatly to the ever-increasing cost of auto insurance in the state. Every vehicle damaged by a weather event costs vehicle owners and their car insurance agency more money. With so many weather events happening in the state, car insurance rates resulting from so many claims have suffered. 
  • Increasing Cost of Healthcare - The cost of healthcare in Texas is rising by an estimated 7% every year for many reasons. Car insurance agencies paying out medical claims have been significantly affected by these increases, further adding to the need to raise auto insurance premiums.

In summary, although every state is currently seeing increases in car insurance rates, Texas is experiencing faster increases due to faster-rising costs in general.

Between its large population, an increasing number of drivers, and the number of uninsured drivers that car insurance agencies end up paying for, absorbing other cost increases has become impossible.

Drivers concerned about their auto insurance premium rate should discuss it with their agency and look for acceptable ways to reduce their bill if possible, then take every effort to drive safely to maintain a lower insurance premium.

More safe drivers will help car insurance agencies keep premiums as low as possible!