Guide To Affordable Insurance Rates

Most state laws require proof of financial responsibility for anyone who drives an automobile in the state. Most drivers choose to purchase liability insurance to meet this requirement, but before many of them get insurance rates online.

Liability insurance pays for bodily injuries, property damage, and rental car expenses for which a driver covered by your policy is legally responsible. For example, the minimum liability insurance required by law in Texas is $20,000 bodily injury per person, $40,000 bodily injury per accident, and $15,000 for property damage per accident. This is commonly called "20/40/15" coverage.

Understanding Rates

Auto insurers evaluate your risk for a claim using your driving record and other factors, including the type of car you drive, the area where you live, your claims history, your credit score, your age, and how you use your car (business, pleasure, or to drive to work). Your rates are based on your risk for a claim.
Accidents, tickets, or claims can increase your rates. If you have accidents, tickets, or claims on your record during the past three years, your rates may be higher.

Typical Drivers
The driver profiles may not match your situation exactly in rate guides, but they provide a way to compare prices. The rates shown are estimates given to insurance agencies by the companies and are not the exact amount you will be quoted. Your premium will vary according to your individual circumstances and could be significantly higher than the rates listed.

Driver A: Adult male age 25-64 or female age 21-64 with no at-fault accidents or major traffic convictions who drives to and from work.

Driver B: Single male under age 21 with no at-fault accidents or major traffic convictions.

Driver C: Single female under age 21 with no at-fault accidents or major traffic convictions.

Driver D: Male or female over age 64 with no at-fault accidents or major traffic convictions who drives for pleasure and errands only.

Financial Rating

A.M. Best Co.´s rating of the financial strength and operating performance of each company. Reprinted by permission. Best´s ratings are subject to change and are current only as of the publication date. For current rating information, call A.M. Best or visit its Web site

Ratings Classifications

A++ and A+ mean Superior
A and A- mean Excellent
B++ and B+ mean Very Good
B and B- mean Fair
C++ and C+ mean Marginal
C and C- mean Weak
NR means the company was not rated by A.M. Best.

Complaint Index

How consumer complaints received by TDI against each company compare to the average, with an index of 1.00 as average. Below 1.00 means fewer complaints than average. Above 1.00 means more complaints than average.
TAIPA is an assigned-risk plan for people who cannot obtain auto insurance from a standard company. Complaints regarding policies issued through TAIPA are counted against the company writing the coverage. TAIPA does not have a complaint index.

Benchmark Rates

The rates set by the Commissioner of Insurance each year for rate-regulated auto policies. Rate-regulated companies can set their rates within 30 percent above or below the benchmark rate without prior approval.

How to Find the Best Rate

If you have a clean driving record, avoid companies and agents that advertise to high-risk drivers. Their premiums are often higher.

Get quotes from several companies before you buy. Include independent agents in your search. Some agents only represent a single company or company group. Independent agents may represent several companies.

Consider higher deductibles. You can save money on your premiums by increasing your policy deductibles. Remember that a higher deductible means you´ll have to pay more out of pocket if you have a claim.

Ask your agent about discounts. You may be eligible for discounts for having two or more cars on the same policy; completing a defensive driving, driver education, or drug and alcohol driving awareness course; and having an automobile with airbags, automatic seatbelts, or certain anti-theft devices.

Before You Buy a Policy, Remember

In addition to cost, consider other factors, such as the company´s financial strength and complaint history.

Make sure you understand what coverages are included with the policy. Choose a policy with the coverages you need and limits that will adequately protect your assets.

Don´t cancel a policy until you have a new policy in effect.

A company can cancel your policy within 60 days from the issue date for any reason, except illegal discrimination.

Answer all questions on the application truthfully. Wrong information could cause an incorrect price quote or a denial or cancellation of coverage.

Don´t give up if a company turns you down. Companies have different standards for accepting new customers. Some companies may accept drivers that other companies won´t.

Unfair Discrimination

Under Texas law, an insurance company cannot deny, refuse to renew, limit or charge more for coverage, or unfairly discriminate in any manner because of your race, color, religion, or national origin. Nor can a company discriminate because of your age, gender, marital status, geographic location, or disability or partial disability-unless the refusal, limitation, or higher rate is "based on sound underwriting or actuarial principles." This means the company must have valid evidence that you present a greater risk for a loss than drivers it is willing to insure.