Rising Cost of Living and Car Insurance Rates
The cost of living has been on the rise in nearly all respects over the past decade. From food costs to the price of gas, no aspect of one’s daily expenses seems to be immune. Falling into step with the rising bottom line are the car insurance rates right here in Texas. Studies reveal that rates in this state are among the highest in the nation, thanks in large part to the rising costs associated with vehicle repair for both cars and trucks. Because this one particular factor is of such importance in the rate hike, it is collision premiums that can take most of the blame for the expense. The numbers were gathered by the National Association of Insurance Commissioners, informing the public that Texas residents are paying an average premium of a hefty $1,022 each year.
Culprit Behind Rising Car Insurance Rates
When representatives of the insurance industry were asked to comment on the situation, they pointed the finger towards the large number of uninsured motorists on the road. When their customers are involved in an accident with people who have no coverage, the expense that falls on the insurance company to cover repairs rises steeply. There is also the steadily increasing cost of parts and labor fees associated with every repair that takes place. This factor is simply a product of inflation over time, but the results are still just as painful for Texas drivers.
Car Insurance Discounts in Texas
Luckily, Texas car insurance companies are still able to offer their clients plenty of discounts. Drivers maintaining their policies with Farmers Insurance have multiple programs that they can enroll in meant to save them money each and every month. Among the most popular of these are the Alternative Fuel Discount and policy-bundling options. Through the Alternative Fuel program, anyone driving a hybrid or other alternative-fuel vehicle such as those powered by natural gas will automatically receive discounts on their premiums. This program is truly a pioneer in the insurance industry. The bundling packages that Farmers offers will earn customers discounts when they put their auto insurance into a bulk policy that covers both life and home insurance. The savings in this program are considerable, but the necessary assets and increased cost of the large package overall makes this option unavailable to a huge percentage of drivers.
State Farm has long been renowned as an auto insurance company who excels when it comes to giving their customers discounts. The list of programs for keeping people safe on the road at minimal expense is exhaustive. Families with teen drivers find the discounts available to them to be particularly appealing. There are savings for young drivers that come with earning good grades in school, attending defensive driving courses, student away at school discounts, and driver training discounts. State Farm also takes into account one’s driving record when they set the premium that their customers will pay. The good driver discount reduces premiums over time when people maintain a record that is free of accidents and traffic violations.
There are also specialized discount programs that are exclusive to State Farm such as the Passive Restraint Discount, the Steer-Clear Safe Driver Discount, and the Drive Safe and Save Discount. Many of these programs even offer a 5 percent discount just for enrolling. Typically, the savings continue to add up the longer one is enrolled. Despite the fact that State Farm excels at offering Texas drivers savings in an increasingly expensive arena of life, not all of the discounts are outlined up front for customers when a person decides to purchase a policy. Drivers should take it upon themselves to explore all of their discount options regardless of the carrier that they choose. Also among the programs offered by State Farm yet to be mentioned are the Multiple Automobiles program, the Anti-theft discount, and the Multiple Line discount. These programs certainly help drivers that are struggling financially, however, not all will qualify. If you have trouble finding a program that gives you a break, then keep in mind some of the primary factors that will affect your rates: your credit score, the car’s designated use, where the car is kept, and the type of car that you drive.