Insurance companies consider weather conditions, the likelihood of accidents, and thefts to determine rates. Drivers who live in metropolitan areas tend to pay more for coverage than those who live in the suburbs due to higher rates of theft, vandalism and car accidents. One way to reduce insurance costs is to review your policy with your insurance agent and eliminate any coverage you don't need, such as comprehensive coverage for an old vehicle, rental reimbursement, or emergency roadside service. When appropriate, many insurance companies use credit history to help determine the cost of car insurance.
Whether you've lived in Texas your whole life or you're new to the state, chances are you've been surprised by the car insurance rates you received when you went to insure your car. The value of the car and the type of car a person drives will also determine insurance rates. When you choose your car insurance deductible and coverage, the details influence your monthly payment. Auto insurance providers typically develop vehicle safety ratings by collecting a large amount of data on customer claims and analyzing industry safety reports.
Where you live is another factor in determining insurance rates for typical auto insurance premiums. If your vehicle falls into a high-risk category determined by insurance companies, expect insurance rates to increase your insurance premium. When buying car insurance, it can be helpful to know the typical cost of car insurance in your area. This information should not be misinterpreted to be considered insurance coverage or binding.
As you can see, auto insurance companies consider a lot of things when determining car insurance. Overall, due to higher rates of vandalism, theft and collisions, urban drivers pay more for car insurance than those in small towns or rural areas. The insurance company also takes into account the area's auto theft rate when determining the insurance rate. So why do Texans pay 26.9% more than the national average? Let's look at why car insurance in Texas is so expensive, what factors influence car insurance in Texas, and how you could lower your premiums.