In Houston according to Value Penguin out of all the major cities in Texas, Houston may have the most expensive rates in the state almost double the smallest premium in the state. But here are a few tricks to lower your rate.
Major Brands
Sometimes major brands can actually charge more for car insurance and here is why. They only promote themselves and are not independent. They can only promote the products they offer and often times force you into getting a bundle to lower your rates. This can be okay for some but for others, it can get pricey. One way to avoid overpaying is searching for alternative options or independent insurance agents. Independent insurance agents work by having more companies in their portfolio and are able to offer more rates and discounts. With more options, they can find oftentimes better rates. Here at Cheapest Auto Insurance in Houston we are also independent insurance agents and have been doing just that. Finding lower rates for our clients over the past 3 decades.
Driving Record
Your driving record is an obvious one but here are some ways to lower the effect of having a bad driving record. You can take online courses and complete a driver safety course and get a certificate upon completion which you can present to an agent to lower your rate. Also, there are some local places you can go to in Houston to take driving classes as well. Like Monroy Driving School or Houston Driving School to name a couple of places you can visit. The certificates last up to 3 years with most companies and over time those reduced rates add up! Even taking a course with a good driving record reduces rates most of the time. Talk to your agent for advice to see what course you should take.
Plan Ahead
Know what coverage’s you need for the road ahead. Often times some people may cover to much insurance coverage for their vehicle and never use what they’ve been paying for, for years. So make a checklist of things you may need your insurance for and then decide whether you need full coverage with high liability limits and so on. To legally drive in Texas all you need is liability insurance.
Why is Car Insurance so Expensive in Houston?
They say everything is bigger in Texas, and that’s certainly true of your auto insurance premiums in Houston. The average cost of car insurance in Texas is several hundred dollars more than the national average. If you happen to live in Houston, then you’ll be paying the highest rates in the state, according to Value Penguin.
Why are the car insurance rates so much higher in Texas, and especially in Houston? Let’s take a look at the factors contributing to these startling increases.
Texas Minimum Liability Requirements Are Higher
Most states require minimum liability coverage of 25/50/20. That’s $25,000 of injuries per person, or $50,000 per accident, and $20,000 in property damage. But the minimum in Texas is 30/60/25. This higher than average minimum starts the bidding off high for any auto insurance policy in the state.
Houston Is A Densely Populated Urban Area
Texas is the second most populated state, behind California, and Houston is one of the largest urban areas. More people in an area driving means there is a higher risk of accidents, vandalism, and theft. Houston is in “the triangle,” an area of Texas known for having the highest population. It’s a trilogy of large cities including Houston, Dallas, and San Antonio.
Long Commutes And More Time On The Road
The more you drive, the higher your auto insurance rates are going to be. Texans drive significantly more than that of people in other states. This is probably due to the landmass in TX and people who live in rural areas commuting to work in urban areas.
More Accidents And DUI’s
Texas is known for speedy drivers and many of these drivers are in large trucks and vehicles that tend to do a lot of damage when they get in an accident. Unfortunately, Texas also has the highest number of DUIs that result in fatalities in the United States. This means insurance companies in Houston and throughout the state of Texas are paying out high dollar claims and need to make up the money somehow to mitigate their risk.
Houston Contains More Expensive Cars
Houston can be an affluent area as well, with drivers typically purchasing more expensive or newer vehicles. The type of car you drive can heavily influence the premiums you pay in your auto insurance coverage. Pricey cars will cost more to insure. Newer cars with fancy computer systems and automated safety features push the purchase price of the vehicles up even further and they can be costly to repair.
So far we have talked about how Houston has the most expensive auto insurance rates in Texas so how do you find affordable rates in Houston? Let's find out!
Who Has the Cheapest Auto Insurance in Houston?
When you live in a large thriving city like Houston, car insurance can get pricey. In fact, auto insurance premiums run about $20 higher than other parts of Texas. That doesn’t mean you have to settle for high rates. Comparison shop auto insurance quotes to find who can give you the best deals. Auto insurance rates are based on many factors, with some being in your control and others not as much. Here is a look at some highly respected auto insurance carriers who have the best rates in Houston.
Factors That Influence Auto Insurance Rates
Your age, where you live, the car you drive, and your driving record are just a few of the factors that make up your insurance risk factor and therefore influence your auto insurance premiums. Some of the factors that influence rates are:
- Where you live. Not just the city but the zip code you live in.
- Your age. Middle-age drivers get the best rates and teen drivers are the most expensive to insure.
- Your credit score.
- The car you drive (newer cars, luxury cars, and classics can be more expensive to insure)
- A Clean driving record. Tickets and accidents will greatly increase your insurance premiums for several years.
- Bundles and Discounts. Take advantage of discounts and bundle options when presented. Shop around because not all insurance companies offer the same discounts.
The Cheapest Rates For Good Drivers In Houston:
- Texas Farm Bureau: $1,167 per year.
- Geico: $1,366 per year.
- Republic Group: $1,552 per year.
- Auto Club of SoCal: $1,674 per year.
- State Farm: $1,813 per year.
To show you how much your credit score impacts auto insurance quotes, take a look at how the rates change when you list them by “cheapest for good drivers with bad credit:”
- Texas Farm Bureau: $2,216 per year.
- Auto Club of SoCal: $2,725 per year.
- Geico: $2,766 per year.
- Republic Group: $2,799 per year.
- Nationwide: $2,884 per year.
That rate increase is nothing to sneeze at. If you want to clean up your credit score as fast as possible, get your hands on a free copy of your credit score and look for quick fixes first. It’s possible that there are errors on your credit score that could be quickly cleared up, including old settled debts that haven’t been reported as cleared. You can also close old credit cards you no longer use. Make sure all payments are up to date and on time from this time forward.
Cheapest Rates For Families With Teen Drivers In Houston:
Besides accidents or DUIs the worst thing that can happen to your auto insurance rates is adding a teen driver. Your rates will skyrocket for a few years so finding the lowest possible rate will be imperative:
- Geico: $3,460 per year.
- Texas Farm Bureau: $3,805 per year.
- Republic Group: $4,277 per year.
- Auto Club of SoCal: $5,070 per year.
- State Farm: $5,224 per year.
What Are The Benefits of Choosing an Independent Agency in Houston?
Driving in Houston is no small task. The city is America's fourth largest. It also ranks 167th out of 200 cities for driver safety. Given the higher risks, residents should expect increased auto insurance costs.
The average Texas rate for auto insurance is about $900 per year. However, in Houston, the average driver can expect to pay between $1,400 and $1,500 per year or about $120 per month. That's a significant chunk out of anyone's checkbook. So, if you're a Houston resident, you likely want to save as much as you can on car insurance.
It's not always easy to find the lowest rates on auto policies. However, one of the best ways to do so is to compare the prices of different car insurers. Many different insurance companies offer competitive prices on essentially the same coverage.
What's the best way to compare insurance companies? By working with an independent insurance agency.
What Is An Independent Insurance Agency?
Independent insurance agencies are free-standing entities. Unlike Captive Agents, they're not tethered to selling the policies of just one insurer. These free-standing agencies often sell the policies of multiple companies.
How Does This Benefit You?
The best way to find an affordable insurance policy is to compare policy rates from different companies. When working with an independent agency, you can find that comparison tool in one place.
Independent agents can cross-analyze the policy offerings of their insurance partners. They will look at the pricing options of similar policies from different providers. The can usually plug in your desired coverage limits to better isolate what you're looking for. If you tell your agent you want the most affordable coverage, they can likely find that for you. Keep in mind, independent agents might not work with every insurer. However, they can likely get you the lowest costs in their network of agencies.
Other Benefits Of An Independent Agency
Working with an independent agency is a great way to complete enrollment with the help of a professional. Independent agents can help you set up your policy for maximum benefits. They can often help you:
- Determine the coverage limits that best serve your vehicle.
- Increase or decrease your deductible for additional cost savings.
- Understand your qualifications for discounts. If you can enroll in multiple discounts, your cost savings will increase.
By working with an independent agency, you will have the peace of mind that comes when a professional helps you find the right coverage. You won't have to worry about going it alone, and winding up with car insurance that isn't to your benefit.
Additional Tips for Finding Cheap Auto Insurance in Houston
Insuring a Used Car in Houston
Many people don't want to make the investment in a new car, because of the high value and rapid depreciation it might experience early on. By contrast, a used car might be a better bet. Used cars can last a long time if properly vetted and maintained.
No matter whether you buy a new car or a used one in Houston, you must ensure it. Still, insuring a used car requires additional attention to details. Let's take a closer look at these.
The Perks Of Insuring A Used Car
Used cars are also tried and tested. Therefore, there's less uncertainty when it comes to protecting the vehicle.
- Because the car has been used, it doesn't have as much value attached as a new car. Therefore, the insurer must assume a lower cost risk by insuring it. They also likely won't have to pay much in the event a loss occurs. Therefore, your rates might be lower than they would on a new car.
- Additionally, if the car doesn't have a history of accidents or damage, then the insurer can better gauge that it is a reliable vehicle. The matrixes that insurers might look at can see the vehicle's reliability over time. This might impact your overall premiums.
Furthermore, because the vehicle has a lower value attached to it, you might not have to buy the highest possible amounts of insurance. Therefore, you'll often lower your cost burden just because you don't have to carry as much protection.
Setting Up Your Policy
In Houston (which is Texas' largest city), auto insurance rates tend to run higher because of the high driving risks in the area. The city's average rates, according to Value Penguin, cost about $2,800 per year, which is higher than the statewide average. When looking to insure your used car, keep these tips in mind:
- Texas law requires all drivers to carry auto liability insurance. This coverage will pay other drivers in the event you are at-fault for a wreck. Always raise your liability limits past the minimum required limits. Therefore, you'll have more coverage available. Let your Cheapest Auto Insurance agent help you choose the right limits.
- You can still buy physical damage insurance for the car. In many cases, policies will pay you only the car's depreciated cash value in the event you total it. However, when it comes to a used car, this might be all the coverage you need.
- All policies will have deductibles attached, which you must pay towards a claim cost. Therefore, choose one that you can afford to pay for. If the vehicle's damage is less than the deductible, then your insurer might not pay.
- Ask your Cheapest Auto Insurance agent if you can qualify for discounts on your policy. Accident-free, student, good driver and automatic discounts might apply.
Call Your Insurer When Your Mileage Drops
Everyone knows that Houston's traffic is significant. If you are a commuter, you might deal with it every day. Yet, the day will come when you don't have to think about your daily commute because you retire. Did you know that when you do, your car insurance risks might drop? You might even be able to save money on your policy as a result. Here's why.
Car insurance differs based on the driver. Use and mileage usually have a big impact on how much risk you pose to the insurer. So, call your agent when you retire. You might benefit in the end.
Why Insurance Risks Drop
When you filled out your insurance quote, the agency likely asked you how many miles you drive per year. They might also have asked you about the primary use of your car. If you mostly drove to commute, it likely won't be hard to calculate your mileage.
But, depending on how and how much you use your car while working, did you know that your risks might have gone up?
Let's think about it in a different way. You might drive the same route every weekday to go to work. On every inch of that pavement, there is a chance that you might have a wreck or other mishap. You will face those risks constantly, and you never know when you might cross a line from a risk to a certainty. So long as you have car insurance, you might be able to cover your personal losses.
However, once you retire, you likely won't use your car in the same way. You might not drive the car the same distance every day. You might only use it for leisure activities. Thus, your driving risks might drop because you won't accrue as much mileage. Always let your insurer should know about the changes. They might be able to offer a lower rate the next time you renew your policy.
Still, Don't Cut Coverage
Just because you have retired doesn't mean you should lower your coverage limits just to save extra money. You will still drive, and you might even rack up more mileage than you did while working if you decide to travel. Maintaining full coverage (liability, comprehensive, collision, etc.) will serve as important a purpose now as it did when you worked.
When your policy comes up for renewal, ask your agent if they can adjust your annual mileage rates. That can help you ensure your policy is always current to your risks.
New To Cheapest Auto Insurance?
Finding the cheapest auto insurance in Houston is hard but not impossible. Let Cheapest Auto Insurance help you find the best rates for you and your vehicle. Call us at 713-237-0904 to get a quote over the phone with one of our insurance representatives or click here for an online quote!