Texas – Factors that Affect Auto Insurance Rates


Although there are so many factors that affect car insurance rates all across the country, many are common practice and some are specific just for automobile drivers in Texas. Knowing what you are looking for will help you make better decisions when purchasing your car insurance or when shopping around for a better rate.

You should check out exactly how your insurance company determines the value of your car if it is beyond repair and it is considered to be totaled? The value is confirmed through computerized quotes from automobile vendors, general market research and the trusty Blue Book. Your insurance company will usually come to a fair and reasonable price for your vehicle. But there may be a problem if they cannot find a comparable replacement from a nearby dealer. The further away they must travel to replace the vehicle, the more it may cost you.

Although 29 states are required to pay the sales tax on your replacement vehicle, car insurance companies in Texas are not required to cover this cost. You can still try to get them to pay those fees as the rule is an insurance company is supposed to at least put you back into the same position you were in before the accident.

Try keeping the number of claims you submit to a minimum if you can. Sometimes smaller fender benders can be handled directly. Putting through too many claims will raise your rates faster than anything. Sometimes the cost of the repair is just about what you would have to pay for your deductible anyway. Your policy rates could increase around 40 percent by submitting too many claims. Check with your insurance company regarding a forgiveness policy. Some insurance companies will overlook the first accident if you have had a good driving record in the past.

Make sure you take the appropriate steps when switching your insurance to another carrier. You must notify your current company and let them know in writing that you are canceling your insurance. If you just let it go thinking that you just start over with the new company, your insurance history is going to show a lapse in coverage, which will show you as a risk and increase your rates.

Adding a teenage driver to your insurance policy is not required until they get their drivers license. If you forget to add them to your policy and they have an accident, your insurance company will cover you but you may be charged for all of the premiums that you didn’t pay through the time your teenager received their license.

Always shop around for the best rates that are available to Texas drivers. There may be discounts available for taking defensive driving classes or for staying with your insurance company for three years or longer.

Your insurance agent will show you how to get the most coverage for the lowest rates. You can trim some extra costs but don’t try to save money now where you will need it in the future.