Before we discuss what smaller factors can change your car insurance rates, let’s talk about the requirements, which also make an impact.
Texas State requirements
State coverage requirements can make a big impact on your insurance rates. Each state has different amounts for which insurance companies are liable to pay in the event of a car accident. These rates give insurance companies a minimum amount in which they have to pay out to those that they insure. In Texas, car insurance is required by law, and drivers need minimum liability coverage limits of:
- $30,000 in bodily injury per person
- $60,000 in total bodily injury per accident
- $25,000 in property damage per accident
Basically, this means that your insurance will cover up to $30k for each person involved in the accident, but no more than $60k for the injuries per accident. It also means they will cover up to $25k in damages to your vehicle involved in the accident as well. These rates can be increased of course, but for a higher premium. This is where your cost can dramatically increase, depending on how much you feel is necessary if you were to get into an accident. If you choose to raise these coverage limits, which many people choose to do because car accidents can be extremely expensive, then you can surely expect your monthly premiums to go up.
Reminder, these rates apply to Texas only. If you live in a different state, please check your state’s minimum liability coverage rates, as they may be different from Texas’ minimum liability coverage.
Now, let’s discuss some other factors, many you may have more control over, with respect to your insurance
Type of Car
What type of car you drive may also play a factor in changing your rates. Safer cars such as newer cars with more safety features or bigger cars that may take less damage on the road are likely to get lower rates because chances are that they are less likely to have many repair costs in the event of an accident, resulting in less payout from the insurance company. And that means your rate also goes down!
On top of that, if you have a cheaper car that would cost less to repair if you got into an accident, that can also significantly lower your rate because of those lower repair costs. So maybe think twice before getting that new luxury sedan or SUV, because they can be pricey to repair!
More affordable/cheaper vehicles will also typically have lower insurance rates because nicer cars have a higher chance of being stolen or broken into, whereas it’s likely no one’s going to ever want to break into an old, beat-up 1997 Honda Civic. So just be sure to keep that in mind!
Driving record
Drivers with better driving records will get lower rates as well, because it typically means that they are more responsible on the road, and that they are much less likely to get into an accident. If you are one of the unlucky ones who have a past record that isn’t so clean, then there’s no need to worry, it will just take some time for your rates to lower again. Insurers typically won’t look farther back than 5 years or so on your driving record, so there’s always a way to improve your record and lower your rates in the future!
Another thing that people may not consider when it comes to car insurance rates, is how much you drive. The more you drive may also raise your rates, because the more you are on the road, the higher your risk of getting into an accident. Makes sense, right?
Age & Gender (sometimes)
The age of whomever is driving the vehicle may also play a role in your car insurance rates. Younger drivers may be expected to get increased car insurance rates because they are less experienced on the road, making them more vulnerable to accidents that more experienced drivers may be able to avoid. Younger drivers are also more well known to drive faster and more recklessly than older drivers, since they may find driving more new, novel, fun, and exciting.
Younger male drivers especially have been shown to get into car accidents more often than young female drivers, and thus can be expected to get charged more than young female drivers on their insurance. On the flip side, older women can typically get charged more than older men. The good news however, is that if you’re an adult, insurance rates tend to even out for those in their 30s-40s and even 50s.
Credit history
Your credit history can also play a role in your car insurance rates, so be sure to always keep an eye on your credit score and if necessary, improve it by getting a credit card! (And paying it off too.) If you are unsure about what your credit score is, either talk to your bank or do a Google search for a “free credit report” and you should find plenty of options!
Where you live
Your zip code can also have an impact on your car insurance rates. City dwellers will typically get higher rates because of the higher crime rates in cities compared to suburban or rural areas. On the flip side, if you happen to live in an area perhaps that’s more surrounded by nature and may have more storms or harsher weather like flooding, also keep that in mind for those storms could very well be raising your insurance costs as well!
Marital Status
Believe it or not, your marital status may have an affect on your insurance rates. It’s been shown that if you’re married, you’ll typically get a lower rate than a single driver because it’s been shown that married adults get in accidents about 50% less than single adults. Who would’ve thought?
Bundling with other insurance & discounts
Bundling car insurance with health, home or other motorized vehicle insurances can help reduce the cost of your car insurance, but how much you do save depends on the company, the type of bundle, as well as your original car insurance premiums.
Did you know that some companies actually offer lower insurance rates to good students? If you or someone you are insuring are in school, check their grades and see if you qualify for a lower rate! You never know! Can’t hurt to ask.
Every Insurer is Different
While all of these factors may play a role in your insurance rates, it is possible that many of them also may not. Every insurance company is different, so be sure to talk to someone at your insurance company and see if you can get a better understanding of your insurance rates! If you don’t have a relationship with your insurance person, let Kicker Insures Me Agency be that person for you. We live the in area you live in, unlike an 800# national company. We know the areas because we live, work and drive in it too! Contact Kicker Insures Me at (281) 487-9686 (call or text) or start an online quote here.