Brochure: Lowering Your Auto Insurance Costs

Automobile insurance rates vary widely depending on the insurance company or agent you choose, the types and amounts of coverage you want, and the kind of car you drive. These are some things you can do to lower your insurance costs:

Shop Around

In Texas a family’s auto insurance rates can differ considerably for identical coverage, depending on the insurance company selected. So it is important that you choose your insurance company carefully. Call several insurance companies or agents and request premium quotes for coverage that meets your specific needs.

You should also ask your friends and family to relate their experiences with various insurance companies. Regardless of rates, you should not select an insurance company with a poor reputation for service.

Consider Higher Deductibles

A deductible is the amount of money you will pay on a claim before your insurance company has any responsibility to pay. By increasing your deductibles on collision and comprehensive (fire and theft) coverage to $200 or even $500 you may substantially reduce your insurance premiums.

Refuse Some Non-Mandatory Coverages

If you have very good medical insurance, you may wish to consider eliminating medical payments coverage on your automobile policy. Be aware however that Personal Injury Protection coverage (PIP) not only pays for medical bills, but also pays 80% of your lost earnings, up to the limit of your PIP coverage. PIP coverage is relatively inexpensive, and can be very useful to you.

If your car has little value, it may not make sense to carry any collision or comprehensive insurance.

Take Advantage of Discounts

Ask your insurance agent about the availability of discounts, including these:

• MULTI–CAR — It makes no sense to insure different cars with different companies.
• MULTIPLE POLICY — For example, you may save money if you buy your automobile and homeowner’s insurance from the same company.
• DRIVER’S EDUCATION — Both students and adults qualify for discounts for taking approved defensive driving or driver education programs.
• DRUG AND ALCOHOL AWARENESS CLASSES — Insurance companies offer a discount if you complete approved drug and alcohol awareness classes.
• ANTI–THEFT DEVICES — Auto alarm systems and other such equipment may qualify you for a discount on comprehensive coverage.
• PASSIVE RESTRAINTS — Companies give discounts for air bags or automatic seat belts.
• ANTI–LOCK BRAKES — Autos with anti–lock brakes may qualify for a discount from some companies.
• LOW MILEAGE — Motorists who drive fewer than an established number of miles each year may qualify for a discount.
• GOOD DRIVER — Having no recent accidents or moving violations may save you money.
• GOOD STUDENT — Young drivers with good grades may qualify for a discount.
• MATURE DRIVER — Drivers over the age of 50 may be entitled to a discount.

Be A Good Driver

Moving violations, especially for DWI or reckless driving, can have a staggering impact on your rates.

Buy Cars Subject To Lower Rates

Automobiles that are expensive to repair, subject to a higher risk of theft, or have a high statistical rate of bodily injury claims cost more to insure. Check with your insurance agent about specific models before making a car purchase.

Use this table to assist you in comparing savings for various auto insurance discounts. Remember to get a total premium quote for your entire insurance package from each company you contact.

At the law firm of Kraft & Associates, P.C., we primarily handle personal injury claims, including automobile collisions, product liability claims and premises liability claims. Our firm also represents claimants in Social Security Disability cases.

We invite you to call us with any legal problem. If we cannot help you, we will attempt to refer you to an attorney or an agency that can help you.