In a city with a population of over 1.3 million people, there’s bound to be a lot of cars on the road at any given time. Due to frequent accidents, longer commutes, and unpredictable severe weather, car insurance in Texas can get pricey. Thankfully, there are ways to lower your premiums and save money on car insurance in Dallas.
Insurance can feel a bit like you’re playing a game of chance. You’re putting some money down upfront because you’re betting that you could run into trouble. The insurance company is pooling everyone together and taking the risk that more people will be accident-free than accident-prone, and they will come out ahead while helping their customers at the same time. Nobody enjoys paying now for an accident that may or may not happen someday. The best thing you can do is to compare the shop and get the best rates you can find to make the whole thing more pleasant.
Minimum Liability Versus Full Coverage In Dallas
The more coverage you elect, the higher your premiums will be. Be careful when selecting a lower or minimum level of coverage, however, as it leaves you open to legal battles and heavy bills in the event of an expensive crash.
Texas, like most states, has a minimum liability coverage insurance rule that stipulates the least amount of insurance you are allowed to carry and still drive. The minimum insurance to drive is liability (coverage for the other party only) in the amounts of:
$30,000 in bodily injury liability per person
$60,000 in bodily injury liability per accident
$25,000 in property damage
While liability-only insurance can be up to 40% cheaper than full-coverage, that savings can be fleeting if you even cause an accident. Remember, liability only covers costs for the other party and pays nothing to you. Also, if the amount of damage you cause to 3rd parties exceeds your minimum coverage, you can be sued in court for the rest of the money owed.
Full coverage auto insurance, a slang term that defines a policy that covers liability, comprehensive, and collision coverage in one, has higher premiums but a lot more protection for you. Choosing between liability only or full coverage isn’t always your choice to make. If you’ve purchased your car with a bank loan, you’ll be required to carry full coverage until your loan is paid off.
The average cost of full coverage auto insurance in Dallas is $1,680. That’s high compared to the state average of $1,415 because Dallas is one of the most populated areas of the state, with a high number of accidents and other claims. There are many benefits to taking out full coverage rather than just liability. For starters, you get help paying your own medical and property damage bills after an accident you cause. You are also allowed to add on additional policies like rental car insurance or roadside assistance, which you cannot do with a simple liability policy.
Another reason that full coverage can save you money, in the long run, is through weather-related claims. Texas has a high number of severe weather incidents per year, such as hurricanes, strong winds, wildfires, and floods. This type of damage to your personal car will not be covered by insurance if you only have a liability policy. This type of coverage is handled under a “comprehensive” policy. Comprehensive insurance also covers vandalism, theft, and animal-related or single-car accident damage.
How Coverage Limits And Deductibles Affect Your Insurance Premiums
While a standard policy is offered, you can opt for higher coverage limits. This could be a good idea if you have an expensive car or if you have a lot of assets, such as a business, that someone could try to take from you if you have a catastrophic accident. If the insurance company is shouldering more risk, it will make your premiums increase. Take the standard coverage if you want a lower premium.
Deductibles are a portion of the claim you must pay out of pocket before insurance coverage kicks in. If you’re willing to pay higher deductibles, then you will be rewarded with a lower premium. In this case, you are taking on more of your own risk, so your monthly or annual price goes down. Some people start out with lower deductibles but raise them when their budget needs to be lowered. This is a good temporary strategy to get through a tough time but make sure to always carry the right coverage that fits your needs. If you have a lot of claims, a bunch of $1,000 or higher deductibles could add up quickly.
Get Cheaper Auto Insurance By Improving Your Credit Score
One thing that you might not expect to be an issue when applying for car insurance is your credit score. Even though you aren’t applying for a loan, insurance companies look at a person’s credit score as a metric of responsibility. They have done studies that showed people with lower credit scores tend to get into more accidents. Not all states allow the credit score to be used to determine insurance premiums, but Texas does. If you are looking for affordable car insurance in Dallas and you have a low credit rating, then you could run into trouble. You’ll need to shop around to find a company that doesn’t weigh the credit score as heavily in the calculation of premiums.
If you’re a person with great credit, however, then you can reduce your rates by as much as 60% in some cases. If you can raise your credit score, you’ll enjoy lower rates, which can save you quite a bit of money. Start actively working on your credit score today because this process can take a while.
Dallas Car Insurance By Credit Score:
Very Poor $3,541
Fair $2,090
Good $1,680
Very Good $1,561
Exceptional $1,381
Credit scores rise and fall by a few points like a small wave, but big changes won’t happen overnight. If you have anything below “good” credit, then you’ll want to work on raising your score by at least 200 points as soon as possible. Some changes affect your score right away, while others take a bit of time to reflect.
Factors That Influence Credit Score:
Payment history (paying on time)
Balances (percentage of available credit makes up 30% of your credit score, these mean do not max out your lines of credit)
History (length of time you’ve had accounts open)
Applications (number of recent applications for new lines of credit)
Talk to your insurance agent about your credit. If your credit has been damaged by something outside of your control like a death in the family, divorce, or illness, they may make exceptions for you.
Tips For Improving Credit Scores Quickly To Save On Auto Insurance:
Start by tracking your score. Get free credit reports or use a monitoring service like Credit Karma.
Pay every bill you have on time, and avoid going to collections.
Keep credit card balances low with plenty of available credit leftover.
Don’t apply for new lines of credit for a while.
You can close newer paid-off cards but keep ones you’ve had established for a long time open even if they are paid off. Make small purchases and then pay off immediately to keep building good credit.
Once your credit score has been improved significantly, do a round of comparison shopping for auto insurance again to see what your new rates could be at various companies.
Choosing The Right Car To Fit Your Auto Insurance Budget
The most expensive and least expensive cars to insure might surprise you. The basis isn’t only in the cost of the car but also in how safe the car is. If the car is known to get into fewer accidents and fewer claims, they are cheaper to insure. Conversely, if the car has expensive parts, is easy to total, or is a popular target for car thieves, then you will pay more for insurance. The following list was provided by NerdWallet.
10 Least Expensive Cars To Insure In 2020:
Subaru Outback.
Jeep Wrangler.
Honda CR-V.
Subaru Forester.
Ford Escape.
Ford F-150.
Chevrolet Equinox.
Jeep Cherokee.
Toyota Tacoma.
Toyota RAV4.
If you’re about to buy a new car and you’re worried about what it will do to your insurance, call your agent to confirm your new rates. If you want to keep premiums as low as possible, you’ll want to avoid these types of cars:
Luxury cars due to their high price.
Sports cars due to their high speeds and expensive parts.
Electric cars can be more expensive because of parts.
Cars targeted by thieves.
Classic cars with irreplaceable or expensive parts.
Finding Cheap Dallas Auto Insurance For Seniors
Aging is something that one should embrace and enjoy. There are a lot of benefits and privileges that only those in the senior years can enjoy. Unfortunately, your auto insurance premiums are not one of those joys. Seniors can experience a rise in rates due to more accidents.
First, let’s determine what factors affect the car insurance rates of a senior citizen. There are a number of factors that affect insurance rates in general such as the type of car you drive for example; if you switch from driving a high-end car such as a Ferrari to a standard family car like a Chevy Cruze, then obviously your rates will decrease.
Another factor is how often you drive. The rates you used to pay when you were commuting daily to work have the tendency to decrease now that you recently retired.
Your driving history is another important factor that is considered in determining your car insurance rates. There are more tendencies for seniors to be safe and cautious drivers, although they may have diminished vision or have nonetheless lost confidence in driving.
Most of the senior citizens have not refreshed their driving skills ever since they learned how to drive decades ago. Taking a course in driving could not only make him safe, but this could also result in discounts.
The following tips can help you save money on car insurance after retirement:
1. Take a driving course
Car insurance companies in most states offer discounts to seniors. In Massachusetts, for example, a senior can get a discount just for turning 65, though in other states, insurance companies prefer them to brush up their driving skills to earn a discount.
2. Add protection to your car
Aside from helping you against theft, cars equipped with alarms, disabling devices, and vehicle tracking systems also get discounts on the insurance rates. You don't have to go over the edge and go high-tech to get a discount for this. Just make sure to first check whether the products you attach qualify for an insurance discount.
3. Choose the type of car that’s cheap to insure.
Choose the kind of car that is driven by mostly safe and experienced drivers, and that kind that doesn't cost a lot to repair and part replacement. Also, make the most of your car features by having it equipped with anti-lock brakes and airbags.
4. Reap some credits for driving less
Let your insurer know if you recently retired. This could also make your insurance premium go down if you don't frequently commute to a job every day.
The best thing you can do for your rates is to shop around for the best deals. You can find a local insurance broker to help you or start at our portal online here.
Cheapest Auto Insurance For Teens And Young Adults
Anyone under the age of 25, especially brand new teen drivers, are among the most expensive drivers to insure. Their lack of experience on the road leads to the lion’s share of high-speed and fatal accidents each year. In fact, car accidents are a leading cause of death for teenagers in the US.
In general, shopping around for the best rates and adding the teen to an existing family plan are the best ways to get the cheapest premiums. Sometimes, doing well in school and keeping a safe driving record can get the teenager some discounts. If your teen has an accident or accumulates speeding tickets, then the price goes up even more. Talk to your teen about safe driving and monitor them as much as possible.
Safe Driving Talking Points For Teens:
Encourage them to take lessons and spend monitored time behind the wheel. Texas has a graduated license program meant to help them get more experience before being turned loose on the road, but more is always better.
Limit distractions, no phones while driving, no music or low volume music, limit number of passengers or friends that can be in the car.
Limit drive time; hours the car can be used, etc.
Talk to them about speeding; tickets can result in loss of the driving privilege.
Have them sign a no cell phone use contract with you.
Here are the cheapest rates for families with one teen driver in Texas:
Geico: $3,247 per year.
Texas Farm Bureau: $3,717 per year.
Republic Group: $4,137 per year.
Auto Club of SoCal: $4,880 per year.
State Farm: $5,064 per year.
There is very little you can do to decrease rates for young drivers besides wait it out. Focus on finding the best over-all family plan and using all available discounts to get the premiums down as much as you can.
Cheaper Car Insurance For Safe Drivers In Dallas, Texas
If you’re a standard driver over 25 with good credit, there is still something that could raise your rates suddenly. Your driving record plays a huge role in your premiums and even in your ability to keep coverage in place. Speeding tickets, reckless driving, accidents, and DUIs can all make car insurance more expensive.
First, let’s take a look at what these things do to your auto insurance rates. Then, we’ll talk about how to avoid these things by being a safe driver.
Keeping in mind our average for good drivers in Dallas is around $1,680; this is what driving infractions can do to your premiums. You’ll notice that the worst thing you can do is get issued a DUI.
Cheapest Dallas Insurance After Speeding Tickets:
Geico: $1,410 per year.
State Farm: $1,878 per year.
Auto Club of SoCal: $1,990 per year.
Cheapest Dallas Insurance After One Crash:
Geico: $1,917 per year.
State Farm: $2,140 per year.
Auto Club of SoCal: $2,310 per year.
Cheapest Dallas Insurance After DUI:
Geico: $1,861 per year.
Auto Club of SoCal: $2,334 per year.
State Farm: $2,831 per year.
Now let’s talk about how to avoid these things and keep your driving record spotless. Many people who have been driving a while feel confident behind the wheel, but that doesn’t mean they can’t benefit from a defensive driving course refresher now and then. Some insurance companies will even offer a discount if you take them. It isn’t enough to simply remain in control of your own vehicle. You need to pay attention to other drivers on the road and anticipate their moves as well.
Distracted driving caused over 400,000 injuries in 2018 and thousands of deaths as well. While there are many causes of distracted driving, cell phone use is currently the worst offender. You can’t keep your eyes on the road and text at the same time. Other distractions include loud music, too many passengers, or driving while you are preoccupied or sleepy. You should avoid driving when you are tired and never use your cell phone while driving. Even hands-free options can be a distraction.
Using Discounts To Cut Down Your Auto Insurance Bill In Dallas
Some factors that go into determining your auto insurance rates are within your control, and some are not. If you’ve already addressed everything you can control, the rest is more or less out of your hands. There is one more way you can lower your bill, and that’s by using discounts offered by the insurance company.
Here are common discounts that might apply to you and could greatly reduce your overall expenses for auto insurance:
Pre-pay in 6-month or 12-month terms
Use auto-draft to pay your bill
Elect paperless billing and statements
Good driver discount
Good grade discount for teens and young adults
Military discount
Professional discounts
Defensive driving courses
Anti-theft devices on a vehicle
Safety devices on a vehicle
Multi-car discount
Family discounts
Bundle home and auto discount
One or more of these discounts might be able to apply to your situation. If times are tough due to job loss or illness, you can also put a car in storage and ask for a reduced rate for fewer miles on the road. Talk with your insurance provider if you are ever temporarily experiencing problems paying your bills. If your insurance lapses, you could have trouble getting it back or experience an increase in your rates. Sometimes a short term deal or payment plan can be arranged to help you stay current and legal.
The best way to make sure you have the cheapest car insurance with the right amount of coverage that you need is to shop around and compare your choices side-by-side. Revisit this comparison shopping at least once a year as part of an overall insurance checkup to make sure you always have the best rates.
New to Cheapest Auto Insurance?
We discussed the different factors that will affect your insurance in Dallas and how it can be a difficult task at times to find affordable coverage for your needs. However, at Cheapest Auto Insurance we are certain we will find you the cheapest insurance for you and your vehicle. You are able to get a online quote using the world's fastest online quoting system. Get a quote now by clicking here! If you prefer to speak with a live agent simply call us at 214-760-4883!