You Can Make Cheap Car Insurance Happen

Most people assume if they go to a couple of online auto insurance quote sites, plug in a few numbers and key in their personal information, they’ll come up with cheap car insurance. This may be true only to a point. You see, much of your rates are determined by specifics that apply to you, which you may be able to change. For instance, improving your credit history, moving to another location, driving the right car and improving your driving record are all within your power to change. Each of these things can have a substantial impact on cheap car insurance rates in Texas and many other states.

Credit History

It’s surprising, even today, a large amount of people don’t realize that auto insurance companies are basing much of their insurance rates on your credit history and score.

The fact is, before approving your insurance application, auto insurance companies want to make sure you’re a good credit risk. They want to know you are going to pay your premium on time and the full amount.

Therefore, insurance companies use credit reports to determine your past paying history for all sorts of bills. They’ll be looking to see if you paid on time or how many missed payments you’ve had in the last year. In addition, they’ll be looking to see if you defaulted on a loan or typically run your credit cards up to the limit.

These types of actions could indicate you are a poor credit risk. If their research indicates you’re a high risk, you’ll definitely pay for it with a much higher insurance premium, and cheap car insurance is definitely out of the picture for you.

You can get cheap car insurance by being responsible and improving your credit picture.

• Pay your bills on time.

• Don’t default on bills.

• Pay down credit card bills to reduce debt.

Zip Codes Make a Difference

There is no doubt about it, cheap car insurance rates are affected by your zip code or to be specific, your geographic location. People that live in cities with higher incidents of crime, vandalism, driving under the influence and auto accidents usually pay higher premiums and cheap car insurance just isn’t an option.

Texas is a good example where some counties and cities are particularly high. Residents in Harris County pay an average of 11 percent more than the rest of the folks in the state. Folks in Dallas County pay about 9 percent more than the state average.

Yet, Travis County in Austin runs about 6 percent less than the average, and Tom Green County in West Texas is the very lowest at 22 percent below the average. If you’re a Texas resident and you’re thinking about a move anyway, it might not be a bad idea to check into cheap car insurance rates in another county.

Vehicle Choice

You can greatly improve your chances of getting cheap car insurance by purchasing a vehicle that is inexpensive to repair or even replace if it’s totaled in an accident.

Driving Record

Cheap car insurance is certainly a possibility if you drive safely, avoid accidents and don’t get senseless tickets for speeding or parking. Having tickets and citations on your record are like a red flag when applying for cheap car insurance

Pay all your fines, don’t get new tickets, and consider taking a driver safety course, which may help to lower insurance rates.

You have a good chance of lowering auto insurance costs and being approved for cheap car insurance, if you drive safely, maintain good credit, drive an inexpensive car to repair and live in a neighborhood with lower insurance rates.