The most common mistakes Texans make when shopping for car insurance.
Updated: Mar 27
Shopping for car insurance in the Lone Star State can be a whole different ball game. Unlike some states with regulated rates, Texas has a deregulated market, meaning insurers have more freedom to set their prices. This can lead to big savings if you shop around, but it also means Texans can easily make costly mistakes. From skimping on hail damage coverage to overlooking juicy discounts, we'll explore the most common missteps Texas drivers make when securing car insurance, so you can steer clear and land the best coverage for your buck.
Sticking with Your Current Insurer "Because Texas":
Texas has a deregulated insurance market, meaning companies have more freedom to set their own rates which means more competition between insurers. With more competition, there's a greater chance you can find a better deal elsewhere, even if you've been with your current insurer for years.
In a competitive market, companies are constantly vying for new customers. This means they often offer attractive introductory discounts that can be significantly lower than what a loyal long-term customer might be paying. Loyalty programs do exist, but the savings they offer may not outweigh the potential discounts available elsewhere.
The beauty of a deregulated market lies in the sheer number of options available. By getting quotes from multiple companies (ideally 3-5), you can compare coverage options and pricing structures. This allows you to find a policy that offers the protection you need at the most competitive rate.
Minimum Coverage and Hailstorms? Not a Good Match:
Texas might be known for its wide-open spaces and friendly hospitality, but it also holds a not-so-friendly reputation for something a little less charming: hailstorms. In fact, Texas took the top spot for hail in 2023, racking up an astounding 1,123 major hail events. These unpredictable storms can pelt your car with ice chunks the size of marbles (or even baseballs!), leaving behind a dimpled disaster zone.
The state minimum liability insurance in Texas, while mandatory, won't protect you from this common threat. Liability coverage only kicks in if you cause damage to someone else's property or injure someone in an accident. Hail damage to your own car? That's a whole different story.
Here's where comprehensive coverage comes in as your hail hero. This type of insurance covers damage to your car caused by events other than collisions, including hailstorms. So, if your car ends up looking like a golf ball piñata after a hailstorm, comprehensive coverage will help pay for repairs or even replace your vehicle entirely, depending on the severity of the damage.
Make sure you have enough comprehensive coverage to handle hail damage, not just the state minimum liability requirements.
Bundling Home and Auto:
Here in Texas, where car insurance rates can fluctuate, and homeowners face unique weather risks, bundling can be an especially attractive option. By combining your coverage, you can potentially:
Offset rising auto insurance costs with home insurance savings.
Gain peace of mind knowing both your car and your home are protected under the umbrella of a single insurer.
Simplify your insurance management and free up some time (and mental energy!).
By understanding the deregulated market and avoiding these common mistakes, you're now in the driver's seat when it comes to car insurance. So, don't settle for the first quote you see! Embrace the power of Texas' deregulated market, shop around, and get ready to land the best possible coverage for your car and your wallet. Safe driving, and happy saving!