How Texas Auto Insurance Companies Set Rates

When Texas auto insurance companies set rates for their policyholders, they consider a number of factors. Premium rates depend on how much risk the applicant presents for coverage purposes and whether the insurance company is prepared to assume that risk. Different companies vary in the amount of risk they will take on and how much they will charge for doing so.

A driver who wants to present him or herself as a low risk for car insurance purposes should make a point of maintaining a clean driving record. Someone who has been driving for a number of years without being involved in any at-fault accidents or accumulating moving violations will be able to quality for low rates on his or her coverage.

Insurance companies also consider the driver’s age, gender and marital status when setting rates. Young drivers, especially young males, pay some of the highest rates for their auto insurance coverage. Married drivers are considered to be more responsible than their single counterparts and are charged better rates.

A policyholder’s choice of vehicle is another important factor when Texas auto¬† insurance companies are setting rates. Drivers who buy one that is expensive to repair or which is likely to damage another driver’s vehicle, such as an SUV, means paying higher rates for coverage. A person who is in the market for a new vehicle who wants to be sure that it is an affordable choice can get quotes for the models under consideration from different providers.