As an insurance agent, the question I get asked the most is “How can I lower my auto insurance rate?” That’s really a loaded question because there’s so many factors now that go into your insurance rates. These are the top 4 things you can do to help lower your rates:
Asking For Discounts
Most auto insurance companies typically offer the same discounts. Some discounts might include having multiple policies (Homeowners, Motorcycler, Umbrella, Life, etc.), taking a defensive driving course, affinity discount based on your career, and adding a tracking device/app to your policy.
Raising Your Deductible
Increasing your Comprehensive or Collision deductible can normally lower your rate. For instance, changing your deductible from $500 to $1,000 could be $10 or more per month you’ll save. Just be sure that your deductible is an amount you feel comfortable paying for if a claim were to occur.
Paying attention to your credit may play a part in your insurance rate. Most states allow credit-based insurance rates, however this doesn’t always mean you’ll get a better or worse rate as it’s only a part of what the carrier will consider for the rates. The credit pull is a soft inquiry from consumer reports and shouldn’t affect your overall credit score.
Not Having State Minimum Coverage
Having a higher Liability Limit on your policy that is above the State Minimum requirement will increase your chances of having a better rate long term. Carriers see a consumer with lower liability limits as more of a risk than those with higher limits. Raising your Liability Limits may only cost another $5 to $10 per month, but save you more than that in the long term
Be sure to contact an agent to go over this with you. If you don’t have an agent and need a policy in Texas, please reach out to me:
Brad Harrell — Texas Insurance Guy
Owner at TWFG Harrell Insurance