Auto Insurance Rates

Reader’s Question:

I have a clean driving record for three years now here in Texas, but I’m wondering why my auto insurance rates are steadily increasing. Do I really need to have auto insurance?

Robert

San Antonio, TX

The State of Texas has financial responsibility laws to protect motorists from financial difficulty following an unfortunate car mishap. Motorists comply with this insurance requirement by purchasing auto insurance coverage for their vehicles. Although you have a clean driving record, you must still maintain your auto insurance coverage. If you do not, or do not have adequate coverage, the State of Texas will obligate you to pay as much as $350 as penalty for the first violation. Remember that fines will definitely increase with the next offense. Your third one could also lead to revocation of your driver’s license. And in some cases, not only will the vehicle’s registration be cancelled, but the car can also be confiscated by the state.

There are numerous factors that affect the increase in auto insurance rates. However, knowing how to lower it can prove to be very rewarding financially. Since you have mentioned that your driving record is spotless for three years now, then you will definitely be eligible for lower rates. Most insurers also give discounts to drivers who have successfully completed the defensive driving course. Other insurers give competitive rates to policyholders with cars that have safety features in them such as airbags, automatic locking seatbelts or crash resistant door pillars. Drivers who share a ride or carpool can also avail of discounts from their auto insurance companies. Contact your local auto insurance agent. Do not hesitate to ask for ways to lower your insurance rates.

Tags: auto insurance, Car insurance discounts, car insurance rate