You Could Save $100 in an Hour

October 2007

Texans can save as much as $100 a year by shopping around for auto insurance.
The Texas Department of Insurance (TDI) publishes consumer information that can help you shop and learn more about insurance.

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.  You can view company profiles on the TDI website.  The profiles provide helpful information about insurance companies, including their license status, complaint data, financial rating, and history. 
• Get quotes from several companies.  Rates can vary significantly among companies, so shop around.  Use TDI’s Automobile Insurance Price Comparisons to compare price estimates.  The price comparisons can give you a general idea about what a company might charge and help you narrow your search.  Call the companies directly to get an exact rate quote. 
• If you have a clean driving record, avoid buying from companies or agents who advertise for high-risk drivers.  Companies that specialize in insurance for drivers with tickets and accidents usually have higher rates.
• 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. 
• Ask your agent about discounts.  Insurance companies may offer discounts that will lower your premium.  Ask your agent what discounts the company offers and which ones you are eligible for.
• Ask your agent about the TAIPA Take-Out Plan.  If you’ve been a Texas Automobile Insurance Plan (TAIPA) policyholder for three years without tickets or accidents, your insurance company must remove you from TAIPA and insure you at a lower rate. 

Order these free publications from TDI, or view them on our website:

• Automobile Insurance Price Comparisons
• Automobile Insurance Made Easy
• Shopping Smart: Tips for Texans Purchasing Auto, Homeowners, and Renters Insurance

For More Information or Assistance

For answers to general insurance questions or for information on filing an insurance-related complaint, call the Consumer Help Line between 8 a.m. and 5 p.m., Central time, Monday-Friday, or visit our website

1-800-252-3439
463-6515 in Austin
www.tdi.state.tx.us

For printed copies of consumer publications, call the 24-hour Publications Order Line

1-800-599-SHOP (7467)
305-7211 in Austin

Help us prevent insurance fraud.   To report suspected fraud, call our toll-free Fraud Hot Line

1-888-327-8818

To report suspected arson or suspicious activity involving fires, call the State Fire Marshal’s 24-hour Arson Hot Line

1-877-4FIRE45 (434-7345)

The information in this publication is current as of the revision date.  Changes in laws and agency administrative rules made after the revision date may affect the content.  View current information on our website.  TDI distributes this publication for educational purposes only.  This publication is not an endorsement by TDI of any service, product, or company.

For more information contact: ConsumerProtection@tdi.state.tx.us