- Obtaining multiple quotes from a variety of different insurers. Consider saving time/effort by using a broker willing to do most of the legwork for you.
- When comparing policies make sure you’re comparing “apples to apples.” In other words, don’t just look at policy costs but also what each policy provides in the form of protection.
- Consider buying more coverage than the minimum amounts required by state law which, for Texas car insurance policies, is liability coverage of at least 30/60/25. On the other hand, don’t be tempted to over-insure yourself by buying types of coverage you don’t really need. An example of this is carrying collision protection on a vehicle worth very little that would likely be considered a total loss if involved in an accident.
You Versus Your Insurer
While your Texas car insurance company provides you with valuable protection against financial losses as the result of a vehicle accident, bear in mind that they are in the business of making money: Insurers will do what they legally can to protect their bottom line. Insurance discounts are a prime example. Most insurance companies have numerous discounts available for which you may readily qualify. However, you often won’t hear about these unless you ask your agent – point blank – what discounts they offer to save you money on your policy premiums. There are literally dozens of discounts your insurer has at their disposal but they likely won’t offer them (or even mention them) unless you pursue the matter.
An insurer with whom you’ve applied for coverage quite likely knows quite a bit more about you than you might imagine. In addition to pulling reports to learn about your driving record, your credit history and insurance claims history, they likely also know how long your daily commute is, whether licensed drivers under the age of 25 live with you, whether you rent or own your home and much more. It’s important when applying for insurance that you’re truthful with the response to every question. If not, you may well have your insurance cancelled.
What Your Insurance Company Cannot Do
Just as you must follow your insurance company’s rules, there are also certain things a Texas auto insurance company is not allowed to do. Some of these include:
- They cannot deny your insurance application or refuse to renew your policy without telling you the reason(s).
- They cannot cancel your policy without providing advanced, written notice. In Texas, you must have at least 10 days’ notice.
- They cannot refuse to sell you a policy simply because you have a bad credit rating.
- They cannot refuse you insurance simply because you have been denied by another insurer.
These four points are especially important if there are factors that might make you a high risk for insurers. It can be a challenge to obtain insurance as a high risk motorist, but it’s by no means impossible. Insurance companies are bound by these rules – and others – intended to make sure there are affordable options out there. Make sure you understand your insurance rights and ask your agent if you have any questions.