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Texas Factors That Affect Car Insurance Rates

Before you purchase automobile insurance in Texas, it's important that you know the different factors that can affect your insurance rates in the state. That way, you'll be able to speak to the insurance company or its representatives knowledgeably about who you are, how you drive, the state of your vehicle, and anything else that might affect your car insurance premiums.

Auto insurance companies in TX determine your rates based on your level of risk. This specifically pertains to the risk they run, when insuring you, of having to pay out on an accident or another sort of claim, and how much and how often they might have to pay. While determining this might seem impossible to you, they can make an educated guess about your level of risk based on many different factors.

Factors Pertaining to You

Demographic factors play an important role in determining your risk level to an auto insurance company. These factors include your gender, age, marital status, geographic location, credit score, occupation and hobbies, policy lapses, and health.

When it comes to gender, women have proven, over time, to be safer drivers than men. They have less testosterone and, therefore, are less aggressive on the road. Because women are involved in fewer accidents than men, their rates will be lower. Note that this does not mean that a woman with several accidents will pay less than a man who has none, but that, all other things being equal, a woman will pay less for car insurance than a man.

Drivers under the age of 25 will generally pay more in car insurance than their older counterparts. Because of their inexperience combined with their exuberance for finally being behind the wheel, they have been proven to be involved in more auto accidents than drivers who are older and have been on the road longer. However, some insurance companies will start raising rates again once a driver turns 65, as older adults can sometimes cause more accidents than their middle-aged peers.

Married drivers have proven themselves more reliable, as drivers, than unmarried people, and so they will also pay less in vehicle insurance. Many insurance companies attribute this to an increased sense of stability and responsibility that some married people have.

Where you live is also influential in determining your car insurance premiums in TX. Drivers in more urban areas have to deal with more traffic and, thus, are more likely to be involved in an auto accident. In addition, Texas has high rates of auto theft and so your rates might be higher than they would be if you lived somewhere else based on this factor alone.

While it might seem counterintuitive, your credit score can also influence your auto insurance rates. People who are more responsible with their money have been proven to be more responsible on the road, as well, and so will pay less for their car insurance. However, it's important to know that, in Texas, an auto insurance company cannot deny you coverage based on this factor alone. If they want to do that, they have to ground it in some other factor about you as a driver, how you drive, or your vehicle.

Your occupation and hobbies also have a slight influence on how much you'll pay for car insurance. No one knows exactly why this is true, but people in some occupations have proven to be better, more reliable drivers than those in other occupations and so pay lower auto insurance premiums. In addition, if you have high-risk or dangerous hobbies, you are deemed someone who likes to take risks and so will pay a little more for your automobile insurance.

If any time has passed when you have not had auto insurance but have still owned a vehicle, these policy lapses can cause you to pay higher insurance rates. Even if you didn't drive during that time, the fact that you were not responsible in keeping up with your insurance means, to an insurance company, that you may not be responsible as a driver. Thus, you will pay more for your automobile insurance if you have any lapses in your previous coverage.

Finally, your health can place a small role in determining your vehicle insurance rates. Healthy people are less likely to suffer long-term consequences if they are in an accident, and so would cost the company, overall, less to insure. Thus, having a good medical history can save you money when it comes to auto insurance premiums.

Factors Pertaining to How You Drive

Your previous claims record is one of the most important factors in determining your auto insurance premiums. If you have filed a lot of claims, you have cost the insurance company more money and are deemed at a higher risk to file a claim again. Note that, in Texas, automobile insurance companies can raise your rates even if you were in an accident but not at fault. In their minds, simply having been in the accident puts you at a higher risk to be in another one.

Tickets that pertain to your driving or other moving violations will also affect your automobile insurance rates. The more times you have been caught breaking the law, the more at-risk you are for an accident and, thus, the more it will cost you to get insurance. Since the state reports these violations to your insurance company, there's not much hope of keeping them in the dark when you get pulled over.

How much you drive is also a key influence in your car insurance costs. Those who drive only a few miles a day, to and from work, will pay less in insurance than people who drive much farther to work or who use their vehicle for cross-country travel on a routine basis.

Factors Pertaining to Your Car

The make, model, age, safety features, and anti-theft features in your vehicle can also affect your insurance rates in Texas. A newer, more expensive car will cost an insurance company more to replace and, thus, will cost you more to insure. In addition, some models of older vehicles are more likely to be stolen than others, and these can cost more to insure, as well.

Any safety features you've had installed will probably lower your auto insurance rates, though you'll want to ask your insurance company specifically about which features they offer discounts for. The same goes for any anti-theft features your car came with or you've had installed. If the vehicle is less likely to be stolen, it will most likely cost you less to insure. This can be particularly important when insuring an expensive vehicle.

Though only a lucky few will fit an insurance company's ideal for a low-risk driver, knowing what they're looking for can help you answer their questions well. This knowledge will also help you to know, before you even approach an insurance company, which factors are in your favor, which ones you can change to make them in your favor, and which ones you can do nothing about. Armed with this knowledge, it should be easier for you to get a good deal on your car insurance in Texas.

 

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