Get Affordable Texas Auto Insurance: Tips And Tricks

Texas has some of the highest car insurance rates in the country, with drivers paying an average of $1,584 per year, which is 4% more than the national average. The cheapest car insurance in Texas is offered by Texas Farm Bureau, with rates as low as $40 per month for minimum coverage and $119 per month for full coverage. Other cheap car insurance companies in Texas include USAA, State Farm, and Geico.

Compare quotes from multiple insurance providers

Comparing quotes from multiple insurance providers is the best way to save money on your monthly bill. It is recommended to get at least three to five quotes from insurance companies of various sizes. While doing so, it is important to consider your policy details. For example, one policy may cost a little more but have higher coverage limits, better perks, or other factors.

When comparing quotes, it is also important to consider the company's customer satisfaction scores, coverage options, and available discounts. By law, Texas drivers must carry a certain amount of car insurance. The Texas Department of Insurance mandates that all drivers have at least $30,000 in bodily injury liability coverage per person, $60,000 per accident, and $25,000 in property damage liability coverage per accident. Texas auto insurers must also offer uninsured motorist coverage, underinsured motorist coverage, and personal injury protection, although these can be declined in writing.

Opt for minimum coverage

Texas law requires drivers to have at least a minimum amount of liability insurance. This includes:

• Bodily injury liability of $30,000 per person.
• Bodily injury liability of $60,000 per accident.
• Property damage liability of $25,000 per accident.

The average cost of minimum coverage in Texas is $548 per year, which is about 2% more expensive than the national average.

While it may be tempting to opt for the bare minimum coverage, most insurance professionals advise against it as it leaves you and your vehicle exposed to risk.

Choose a higher deductible

Choosing a higher deductible is a great way to lower your insurance premium. However, it is important to note that this also means you will have to pay more out-of-pocket if you ever need to file a claim.

The deductible is the amount you pay out-of-pocket before your insurance carrier starts paying for repairs. For example, if you have a $3,000 repair and a $1,000 deductible, you will have to pay $1,000 out-of-pocket, and your insurance company will cover the remaining $2,000.

Most drivers choose a $500 deductible, but policies with higher deductibles tend to be cheaper. When selecting a deductible, it is important to consider your budget and whether you are willing to take the risk of having to pay more in the event of an accident.

If you have savings and are a safe driver, choosing a higher deductible could be a good option for you. However, if you don't have savings and are more likely to get into an accident, a lower deductible might be a better choice, even if it means paying higher monthly premiums.

It is also worth noting that deductibles usually only apply to certain types of insurance coverage, such as collision, comprehensive, uninsured motorist property damage, and personal injury protection. Liability coverage, on the other hand, typically does not have a deductible.

Improve your credit score

Improving your credit score takes time and consistency, but it's possible to see significant improvement within a few years. Here are some detailed tips to improve your credit score:

• Make on-time payments: Payment history is the most important factor in determining your credit score. Always make payments on time to maintain a positive payment history. Set up autopay for at least the minimum amount due and create calendar reminders to avoid late payments.
• Pay down revolving account balances: The amount you owe is a significant factor in your credit score. Aim to keep your credit utilisation rate (the percentage of available credit used) as low as possible. Pay off credit card debt and consider consolidating debt with a loan.
• Don't close your oldest credit account: The length of your credit history matters. Avoid closing old accounts, even if you no longer use them, as this can shorten your credit history. Consider using your oldest credit card occasionally or putting a small recurring bill on it to keep it active.
• Diversify your types of credit: Lenders like to see that you can manage different types of credit responsibly. This includes credit cards, student loans, mortgages, and other types of loans.
• Limit new credit applications: Every time you apply for new credit, a hard inquiry is made on your credit report, which can negatively impact your score. Only apply for new credit when necessary and consider the impact on the average age of your credit accounts.
• Dispute inaccurate information: Review your credit reports for any inaccuracies or signs of identity theft. Dispute any incorrect information with the credit bureaus to have it corrected or removed.
• Become an authorised user: If a family member or friend has a credit card with a good history of on-time payments, ask to be added as an authorised user. This can have a positive impact on your credit score, especially if you have a thin credit file.
• Pay bills on time: Late payments can negatively affect your credit score and remain on your credit report for up to seven years. Set up automatic payments or reminders to ensure you always pay at least the minimum amount on time.
• Ask for higher credit limits: Increasing your credit limit while keeping your balance the same can lower your overall credit utilisation rate, which is beneficial for your credit score.
• Deal with collections accounts: Paying off collections accounts removes the risk of being sued for the debt. You can also negotiate with the collection agency to stop reporting the debt once it's paid.
• Use a secured credit card: A secured credit card requires an upfront deposit, which serves as collateral. Using this type of card responsibly can help build your credit history.
• Get credit for rent and utility payments: Services like Experian Boost can add your on-time rent and utility payments to your credit reports, which can positively impact your score.

Consider pay-per-mile insurance

If you're looking for cheap auto insurance in Texas, you might want to consider pay-per-mile insurance. With pay-per-mile insurance, you pay a low monthly rate, plus a few cents for each mile you drive. This means that the less you drive, the less you pay.

Metromile is a pay-per-mile insurance company that offers savings of up to $947 per year compared to traditional insurance. Their rates start at $29 per month, plus a few cents for each mile driven. They offer flexible coverage options, including accidents with other vehicles, fixed objects, and motorists, as well as coverage for weather, animal, and theft-related incidents. They also offer roadside assistance, glass repair, and 24/7 support from their claims team.

Pay-per-mile insurance is a great option for those who don't drive frequently or who have a short commute. By paying for the miles you drive, you can save money on your car insurance and only pay for the coverage you need.

It's important to note that pay-per-mile insurance may not be the best option for those who drive long distances or have a high annual mileage. Additionally, factors such as driver age, credit history, type of vehicle, and driving history can also impact your rate.

Overall, if you're looking for a way to save money on your car insurance in Texas, pay-per-mile insurance is definitely worth considering.

Frequently asked questions