Texas Laws & Saving Money on Auto Insurance Premiums
Posted by: Linda Kay | January 20, 2014
We all know that Texas law requires us to be in a financial position to pay for any damages or injuries we may cause as the result of an auto accident. That’s why most people buy liability insurance.
Auto insurance premiums are based on several different factors and certain conditions or situations can cause these premiums to increase. Some of the obvious reasons for premium increases are accidents, speeding tickets or adding young drivers to your policy. There are other reasons for premium increases that may not be so obvious, like:
Credit Reputation and History
First, let’s understand the difference between “Credit Scores” and “Credit-based Insurance Scores”. Credit scores are used by lending institutions to help determine how likely it is that you will repay a loan and can include information like your job, income, gender, and other personal information. Credit-based insurance scores don’t factor in job, gender, or personal information. Auto insurance companies use them to determine the likelihood of an insurance claim. Studies have shown that a person with a low or poor score is a higher insurance risk and will pay a higher premium.
Driving More Can Cost More
When you applied for auto insurance, one of the questions asked was – “How many miles do you drive annually”? Insurance companies usually feel the more miles you drive, the higher your chances of being involved in an accident. Some insurance companies offer discounts for drivers who drive less.
Single Drivers May Pay Higher Premiums
Frequently auto insurance companies offer lower insurance premiums if you’re married. Just as older drivers are typically safer drivers than teenagers, statistics show that people who are married tend to drive more safely than single drivers.
Letting A Friend Drive Your Car Could Increase Your Premiums
Your auto insurance may cover your vehicle while someone else is driving it. Remember, even though any damages may be paid, it’s still an accident involving your vehicle and accidents can affect your insurance premiums.
Review your auto insurance program at least once a year to make sure you are getting the best coverage for the best premium. Take advantage of the discounts available to you with a call to Dean & Draper. If you live in the Houston area and haven’t reviewed your auto insurance program in the past year or just don’t have a local agent to talk to, please click here DeanandDraper or give us a call at (888) 266-0444 or (713) 527-0444. We will make sure your insurance programs meet your needs and your lifestyle.
Dean & Draper is a Trusted Choice insurance agency representing over 200 insurance companies. For over 33 years we have offered a trusted freedom of choice to our clients. ContactUs.