Texas Auto Insurance

No matter what you´re paying for auto insurance coverage, it may seem like too much for a product you hope you´ll never have to use. But if the time comes when you do need it, it will seem invaluable.

There are four basic ways to lower your auto insurance costs: shopping carefully, qualifying for discounts, raising your deductibles and most importantly driving carefully.

Unlike the homeowners market in recent years, there is a healthy amount of competition for your premium dollars among the state's auto insurers. While having more choices may require some research to select the best one for you, a competitive market helps keep prices in check and may also yield better customer service.

Along with shopping for the best deal, there are other ways to trim your car insurance bill. One of the easiest is to make sure that you are receiving every discount for which you are eligible. One of the best known is the 10 percent discount available for drivers who complete a state-approved driving safety course, but there are several others.

Having a car with certain equipment such as antilock brakes, airbags, daytime running lights or an anti-theft system can earn you a discount. Taking an approved drug and alcohol awareness course can save you five percent off your liability, collision, medical payments and personal injury protection premiums.

If you have teenage drivers on your policy your auto insurance costs will be higher, but even so there may be opportunities for savings. Ask whether your insurance company offers a discount for students with good grades. And if your child is away at college and does not have access to a car, be sure to tell your agent. That may qualify you for additional savings through the optional "student away at school" discount.

Maintaining a clean driving record is crucial to keeping your insurance costs low. If you have had no tickets or accidents in the past three years, you may be eligible for a safe driver discount offered by some companies.

Most discounts vary among the different insurance companies, however the discounts for driver safety and alcohol and drug awareness classes are mandatory for all companies except the 24 carriers organized as "county mutuals."

Other factors that may affect your premiums are harder to control, such where you live or how you use your car. Your age also affects your rates. Male drivers under 25 and unmarried female drivers under 21 pay the highest rates. On the other hand, drivers over 50 years old may qualify for discounts given by some companies.

Drivers living in cities usually pay more than those living in rural areas. That's because statistics show accidents and auto thefts are more common in urban areas.

And if you use your car for business, you´ll probably have to pay more for coverage. More miles on the road, means more potential chances for getting into an accident.

Texas Auto Insurance for Financing

When you borrow money, make an installment purchase or obtain a credit card, you can count on being offered various kinds of insurance. It´s important to understand what they cover and what they cost before deciding whether to buy them.The types of insurance commonly offered to borrowers and credit card holders include:

* Credit life, which pays off all or most of your loan if you die. * Credit disability, which normally makes your monthly loan payments while you are disabled by injury or illness. * Credit property, which replaces a financed item that is destroyed before the loan is paid off. * Involuntary unemployment insurance, which makes your payments if you lose your job. * "Gap" insurance, which pays the difference if your car is "totaled" and your loan balance exceeds the "actual cash value" reimbursement paid by the car insurance company.

Some credit card issuers bundle several coverages into a "credit protection" package that they promote to customers.The most aggressively offered coverages are credit life and disability insurance, which earn high commissions for the sellers, including auto dealers, banks, credit unions and furniture stores.

If you buy credit insurance, the premium goes on your loan, meaning you pay interest on it. On a $15,000, four-year, 7.75 percent interest loan, the premium would be $267 for credit life and $659 for the most common credit disability coverage, a total of $926. The total amount financed becomes $15,926, consisting of the loaned amount plus the credit insurance premiums. Financing the premiums increases the interest by $154 over the life of the loan.

Lenders rarely require credit insurance or other form of life insurance to assure payment of a loan if you die. When they do, they can´t legally make you buy it from them or from a particular insurance company.

If a salesperson or lender tells you insurance is required, ask to see the "truth in lending" statement on your loan agreement. If it says insurance is not required, ignore claims to the contrary. Another option is to find a lender, car dealer or retailer who won´t pressure you to buy unwanted insurance.

If life insurance is required, you can save money by assigning part of your existing life insurance policy to the lender instead of buying credit insurance. Your insurance agent or company representative can help with necessary paper work.

You can cancel a credit life and disability policy (unless the loan or charge agreement requires coverage) if you decide you don´t need it. You´re entitled to a full refund if you cancel in the first 15 days or a partial refund if you wait longer. The refund most likely will be credited to your loan balance and not paid directly to you.

If you're the parent of a new driver, be prepared. Your auto insurance bill will likely increase-and stay that way-until the young driver is out on his or her own. Male drivers under the age of 25 and unmarried female drivers under the age of 21 pay the highest rates for auto insurance coverage. But there are some things you can do to help control these costs.

One way to keep auto insurance costs in check is to ask your agent about available discounts. One of the most common is a discount for drivers' education. Most insurance companies offer a 10-percent driver training credit for teenagers who complete a driver education course. That discount is also available to parents—or any driver—who complete a state-approved drivers' safety course. An additional 5 percent discount is offered to drivers who complete an approved drug and alcohol awareness course.

While all regulated insurance companies are required to offer the driver education discount, there are other discounts that vary from company to company. Some insurance companies offer optional discounts based on the type of car insured and the kind of safety features it has. Ask your insurance agent whether the company offers a discount for students with good grades. And if your child is in college and does not have access to a car, be sure to tell the agent. You may be eligible for additional savings through a ”student away at school discount.“