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Texas Department of Insurance
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April 7, 2022

How to lower car insurance costs

Has your car insurance gone up lately? Or maybe you’re just wondering about some ways to lower it. We talk about ways to save.

Why are car insurance prices going up?

There are more drivers on the road going to work and school than there have been in the last couple of years due to the pandemic. With more cars on the road, there are more accidents and more car damage that insurance companies pay for. The cost of parts to repair cars has increased also.

How can I save money on car insurance?

Talk to your auto insurance company. Make sure they know about life events that might lower your rate, like a child moving out and getting their own insurance. Also ask your company if there are any discounts that you might qualify for.

What car insurance discounts are available?

A lot of companies offer a discount if you have multiple policies with them, like a car and home policy. If you have a student on your policy, the company might offer a discount if they’ve taken a driver’s ed course or get good grades.

What do insurance companies look at when they set my premium amount?

The two biggest factors are your age and your driving history. If you haven’t caused any accidents, you might get a lower rate. Some companies will also look at your credit history.

What should I look for when shopping around for a new policy?

Be sure you’re comparing the same coverages, coverage amounts, and deductibles. If one of those is different when you’re looking at policies from different companies, you’ll notice a big price difference.

Can I lower my car insurance deductible or drop coverage to save money?

You can, but make sure you understand what impact that will have. The deductible is what you’ll have to pay when you file a claim. If you have a $500 deductible and it costs $10,000 to repair your car, your company will pay $9,500 toward the repair.

Another way people think they can lower their rates is by dropping collision and comprehensive coverage. Collision pays if you’re in an accident or if you hit something. Comprehensive pays for damage from something like a storm or a tree falling on your car. Ask yourself how you’d pay for the damages or pay to get a new car if you don’t have those coverages.