Purchasing Texas car insurance for the first time can be overwhelming. There are countless independent agents to choose from in addition to over 40 major national brands in the market today. With this extensive selection it can be difficult to differentiate one company’s offerings from another.
Each car insurance company has a unique offering, but not every company can save you the most money. The best way to choose between companies is to know which factors will have the most influence over your Texas car insurance rate.
Here are some important facts and tips to consider when purchasing Texas car insurance for the first time:
Shop around for the best value – Although companies will put pressure on you to purchase their policies right away after getting a quote, compare at least four companies before choosing the best option. A great way to compare companies is by going through a brokerage agency that offers multiple insurance quotes at once or finding an independent insurance agent that can offer you a quote from multiple companies. Companies that offer quotes online are also very useful when trying to get several quotes quickly.
Purchase More Coverage than the State Minimum- The state sets a minimum coverage level requirement, but it is rarely enough to fully cover a major accident. Purchasing only the state minimum can cost you much more in the long run, than paying a few more dollars per month to get comprehensive coverage. For example, if your policy doesn’t cover car repairs for your vehicle or a vehicle that you cause damage to in an accident you could end up having to pay much more out of pocket for these expenses than you would have paid in monthly insurance payments.
Weigh Your Deductible Options – It is extremely important to look at the deductible, better known as the out of pocket amount that you will have to pay upfront to your insurance company, in case of an accident. One company may give you a lower rate than another, but the high deductable might cost you much more in the end.
For example, if the car insurance policy you choose costs $ 35 per month but the deductable if you have an accident is $ 1000 and you have one accident that year, the yearly cost for your insurance plus the accident would be $ 1,420. That breaks down to $ 1000 for the deductable for the accident, and $ 420 for your yearly insurance policy.
If another company offers you a policy for $ 50 per month with a $ 500 deductible and you had one accident that year, your yearly total would be $ 1,100 or $ 500 for the deductable for the accident and $ 600 for your yearly insurance policy. This is a good example of how a lower monthly payment doesn’t necessarily mean more savings overall.
Know What Each Policy Covers – Check the limits for comprehensive/collision coverage, personal injury protection (PIP), Medical expense coverage, uninsured motorist coverage, bodily injury and property damage coverage on every policy that you get a quote from. These will be outlined on your policy summary. As mentioned before, just because you are getting the lowest rate each month, that doesn’t mean you’re really getting the best deal. It is important to consider each scenario that you would have to pay for in case of an accident.