A First Time Buyers Guide to Texas Car Insurance | Texas Auto Insurance Guide

July 14, 2012 · Posted in Insurance · Comment 

Purchasing Texas car insurance for the first time can be overwhelming. There are countless independent agents to choose from in addition to over 40 major national brands in the market today. With this extensive selection it can be difficult to differentiate one company’s offerings from another.

Every car insurance company has something different to offer. The best way to find the lowest rate for you and choose between companies is to know the most important factors to consider when choosing a policy.

Here are the most important facts and tips to know when buying Texas car insurance for the first time:

Shop around for the best value – Although companies will put pressure on you to purchase their policies right away after getting a quote, compare at least four companies before choosing the best option. A great way to compare companies is by going through a brokerage agency that offers multiple insurance quotes at once or finding an independent insurance agent that can offer you a quote from multiple companies. Companies that offer quotes online are also very useful when trying to get several quotes quickly.

Buy More than the State Minimum Coverage – Although the state sets a minimum coverage level, it is rarely enough to fully cover a major accident. In the long run, purchasing only the state minimum can cost you much more than paying a few more dollars monthly to get more comprehensive coverage. If your policy doesn’t cover medical expenses or car repairs for you or the other driver involved in an accident, you could end up having to pay out of pocket for these expenses.

Weigh Your Deductible Options – It is extremely important to look at the deductible, better known as the out of pocket amount that you will have to pay upfront to your insurance company, in case of an accident. One company may give you a lower rate than another, but the high deductable might cost you much more in the end.

For example, if the car insurance policy you choose costs $35 per month but the deductable if you have an accident is $1000 and you have one accident that year, the yearly cost for your insurance plus the accident would be $1,420. That breaks down to $1000 for the deductable for the accident, and $420 for your yearly insurance policy.

If another company offers you a policy for $50 per month with only a $500 deductible and you had one accident you would pay $500 in addition to $600 per year for a total of $1,100. This example shows how lower monthly payments don’t always mean the most savings.

Compare Your Additional Coverage Limits – Each policy has specific limits for additional coverage such as comprehensive/collision coverage, personal injury protection (PIP), Medical expense coverage, uninsured motorist coverage, bodily injury and property damage coverage on every Texas car policy that you get a quote from. These types of coverage can save you lots of out of pocket expenses so it is important to decide if you want to pay more upfront or end up paying more in the long run. These limits will be listed on your policy summary. It is important to know that, just because you are getting the lowest rate each month, that doesn’t mean you’re really getting the best deal.

Al Boenker Insurance is a great resource when purchasing Texas car insurance for the first time. Al Boenker Insurance can compare the rates of over 127 different Texas auto insurance companies to get you the lowest rate available and save you time and money.