How Do Auto Insurance Companies in Dallas Set Their Rates?
Since no two drivers will get the exact same rate, it can be hard to figure out what your cost of insurance will be without calling for a direct quote. So many factors go into deciding your rate and some are outside of your control. Cheap auto insurance in Dallas can be tough to find. So, what aspects are Dallas auto insurance companies looking at when they make this important decision?
Personal Characteristics That Factor Into Car Insurance Rates
Your age can negatively impact your insurance rates if you are under 25. That’s because younger, less experienced drivers tend to have more accidents. Although it sounds completely unfair, most states currently allow insurance companies to have different rates for male and female drivers. Younger males and older females are charged more, in general, for their premiums. Only a few states have laws against this bias. There are a few other personal factors that make insurance companies see you as a lower risk driver such as being married or having a college education.
What Kind Of Car You Drive Can Change Your Rates
Rates are partially determined by claims your car could have if you are in an accident, therefore new cars, luxury cars, and vintage cars are all more expensive to insure. If you have a lot of high-end features like built-in GPS or a great sound system, that could also increase your rates. Safety features, however, can actually lower your rates. There are some cars that have a higher chance of being stolen as well, if your car fits on that list then you’ll have an increase in rates.
Where You Live And Your Credit Can Impact Your Premiums
Not all Dallas drivers will have the same rate just because they live in the same city. The exact zip code you live in can make the rates vary between two otherwise similar drivers. Many states also allow car insurance to be partially determined by your credit rate. People with excellent credit scores are often more responsible drivers and lower risk.
How You Drive Has A Big Influence On Your Rates
Low-mileage drivers can get cheap auto insurance. If you park your car in a garage as opposed to on the street could also lower your rate. If your car is placed in a storage garage part of the year is another good example of how the way you use your car can affect your rate.
The two biggest factors that determine your rate is your claim history and driving record. If you have been in a lot of accidents or have had to make a lot of claims for other reasons like weather or vandalism, that can raise your rates. Also getting multiple speeding tickets or a single DUI can rate your rates by a lot.
As you can see, there are a lot of individual factors that go into creating a cheap auto insurance quote. That’s why it’s best to get a custom quote from each company you are considering working with.
How Do I Keep My Insurance Rates As Cheap As Possible?
Shop Around for Insurance: Prices vary from company to company, so it pays to shop around.
Ask for Higher Insurance Deductibles: Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40% or more.
Reduce Insurance Coverage on Older Cars: Consider dropping full coverage on older cars and switching to liability coverage. If your car is worth less than 10 times the premium. purchasing the coverage may not be cost effective. Review your coverage at renewal time to make sure your insurance needs haven't changed.
Buy Your Homeowners Insurance and auto Insurance from the Same Insurer: Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. You may save money buying from different insurance companies, compared with a multi-policy discount.
Maintain a Good Credit Record: Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price auto insurance policies. To protect your credit standing. pay your bills on time. don't obtain more credit than you need and keep your credit balances as low as possible.
Seek Out Other Insurance Discounts: Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student. has taken a drivers education course or is at a college out of the area without a car. you may also qualify for a lower rate.
New to Cheapest Auto Insurance?
We know that getting a quote on auto insurance can be frustrating but at Cheapest Auto Insurance we work hard to make sure that you are getting the best rate!
To speak with one of our insurance professionals call us at 214-760-4883 or for an online quote click here!