Rates vary widely among companies, so it pays to shop around. Following are some tips to help you find the best deal for your money:

• Decide before shopping what coverages you need.
• Consider choosing a higher deductible. Your deductible is the amount you must pay before the insurance company will pay. Higher deductibles will lower your premium, but you’ll have to pay more out of your own pocket if you have a claim.
• Get price quotes from several companies. Make sure the quotes are for the same coverages.
• When getting a price quote or applying for insurance, answer questions truthfully. Wrong information could result in an incorrect price quote or could lead to a denial or cancellation of coverage.
• Ask your agent whether you qualify for any discounts the company might offer.
• Consider factors other than price, including a company’s financial rating, complaint index, and license status. The financial rating indicates a company’s financial strength and stability, and the complaint index is an indication of its customer service. Buy only from licensed companies and agents. It is against the law to sell insurance without a license in Texas.

Your age and, for younger drivers, your marital status. Male drivers under 25 and unmarried women under 21 have the highest rates. Drivers over 50 may get discounts.

Your driving record and claims history. A good driving record can save you money. If you have accidents or tickets on your driving record, you’ll have to pay more for insurance. Companies may add surcharges to your premium for major convictions, some driving violations, and accidents that result in property damage. Some surcharges are mandatory and will apply to your premium for three years.

Where you keep your car. Because drivers in urban areas have more accidents and auto thefts, their rates are typically higher than the rates for drivers in rural areas.

The type of car you drive. Collision and comprehensive rates are highest for luxury, high-performance, and sports cars. Rates may also be higher for cars that damage easily or cost more to repair.

Your car’s primary use. Rates are higher for cars driven to and from work or used for business than for cars driven solely for pleasure.

Your credit score. Companies may consider your credit score when deciding whether to sell you a policy and at what cost. A company cannot refuse to sell you a policy or cancel or nonrenew your policy solely based on your credit.

Whether you drove uninsured in Texas. Companies may charge more if you drove uninsured in Texas for more than 30 days in the 12 months before you applied for insurance. However, a company cannot otherwise charge you more for liability coverage because of your prior lack of coverage.

Discounts can help you save money on your premium. Discounts vary by company. Following is a list of some of the discounts commonly available in Texas:

• defensive driving and driver education courses for young drivers
• students with good grades
• parent or family whose young driver is away at school without a car
• airbags and automatic seatbelts
• automatic daytime running lights
• antilock brakes
• two or more cars on a policy
• driver age and annual mileage driven
• policy renewal with good claims and driving records.

If you have a poor driving record, you can expect to pay more for your insurance. Companies may add surcharges to your premium – some as high as 60 percent – for the following:

• accidents (the more accidents, the higher the surcharge)
• moving violations (speeding, etc.)
• involuntary manslaughter
• driving under the influence
• criminally negligent driving
• driving without a license or with a suspended license.

To save money on your auto insurance, follow these simple steps:

• Consider factors other than price.  Buy only from licensed insurance companies and agents.  Also, make sure the companies you’re considering are financially stable and have good customer service. 
• Have your agent get quotes from several companies.  Rates can vary significantly among companies, so ask if they have multiple companies to shop around. 
• Buy only the coverage you need.  Texas law requires you to have liability insurance, but you can consider dropping your collision and comprehensive coverage if your car is older, paid for, and of relatively low value.  If you still owe money on your car, your lender will probably require you to have collision and comprehensive coverage. 
• Consider higher deductibles.  Raising your deductibles will lower your collision and comprehensive premiums.  However, be sure you can afford the higher out-of-pocket expense if you have a claim.