How to Decrease Your Car Insurance Premium?

Auto, Home, Business Insurance for Alvin, Pearland Texas

How to Decrease Your Car Insurance Premium?

January 4, 2019 Auto Insurance 0

During my insurance career, the Texas Safety Responsibility Law and technology have made the greatest impact on personal auto insurance.

The Texas Safety Responsibility Law requires you to maintain financial responsibility to legally operate a vehicle on the public roads of Texas.  As a result, the number of uninsured drivers has drastically reduced to an estimated 14.1% statewide. * That’s impressive.  However, computers have created far more changes in the auto insurance industry.


Thirty-five years ago, there was no internet and most insurance agencies did not own a computer.  The premiums were calculated by using paper manuals.  There were only 15-20 different classes of drivers.  Today, the insurance companies establish their own criteria and driver classes.  Typically, an insurance company will have 50 base classes of drivers.  Within each base class, there will be 1,000 cells.  The result is going from 15-20 driver classes to 50,000 classes.  Thirty-five years ago, you could stay in the same driver class for over thirty years.  Today, your driver class could change every renewal.

Yes, there are certain premium factors (your vehicle year, make, and model, your driving record, where you reside, your age and gender) that have not changed over time, but now the insurance company wants a whole lot more information., all of the questions factor into your car insurance premium.

Key Concept:  The Insurance Companies are Underwriting Your Lifestyle.

Top 15 Factors  to Lower Your Car Insurance premium

1. Maintain Good Credit   The insurance company runs a credit check (insurance score).  The better credit individuals receive lower premiums.

2. Maintain a Good Driving Record It goes without saying if you have no accidents or moving violations your insurance coverage will be cheaper.

3. What type of Car do you drive: Before buying your next car you might want to compare rates on vehiclesCar insurance premiums are usually based on the price of car and cost to repair it. Along with it’s safety record.

4. Multi Policy Discounts Many companies will give packaging credits.

5. What is your Car Used for?   

  • Drive to and from work
  • Number of days a week
  • One-way distance to work
  • Estimated annual mileage
  • Uber or pizza delivery, etc.

6. Marital Status – Statistics indicate married people have almost half the number of accidents as single individuals. ***

7. Your Occupation/Your Title

8. Your Child’s School Grades

9. Drivers Training Courses

10. Level of Your Education

11. Tobacco Use

12. Your Living Arrangement – Do you own or rent a home, mobile home, or apartment?

13. Your Willingness to Measure Your Driving Habits – Be careful.  These are the instruments that plug into your vehicle that measure your driving habits.  Generally, these five items are measured:

  • How much driving,
  • How much driving over 65 mph,
  • Sudden starts,
  • Sudden braking,
  • When driving is done (2 am is not good)

14. Increase your  Deductibles

15. Antitheft devices

The Bottom Line:

In 2017 the combined loss ratio for personal auto insurance indicated the insurance companies had a 5.5% underwriting loss. **   As a result, many insurance companies will be raising their rates in 2018-2019.

My 2 best recommendations to control your car insurance rates:

  1. Focus on the items you can control,
    • Your driving habits,
    • Your selection of vehicles, deductibles, and coverage limits,
    • If your credit is not good, work on improving your rating, etc.
  2. Contact an established independent insurance agent. Currently, the independent insurance agent has an advantage over the direct writers.  A direct writer has one source for your auto insurance.  A good independent will have access to multiple carriers and is able to get you the best prices on your car insurance for most scenarios.

Currently, Independent Insurance Counselors represents 13 different personal auto carriers.  The companies’ driver appetite ranges from the spotless driver to drivers with incidents.  We have chosen insurance companies, so we can be competitive with all 50,000 driver classes.

Who do you think has the advantage State Farm or Independent Insurance Counselors? If you want a stable agency with excellent company representation, contact us at 281-331-3131 or visit us at





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