What Hurts Your Auto Insurance Rates the Most?

Your auto insurance premium is not a fixed number, and if you have noticed yours rising over time, you are not imagining it. Several factors can influence it, and knowing what they are puts you in a better position to manage your costs. Drivers in El Paso, Anthony & Socorro, TX can benefit from understanding what insurers look at before setting a rate.

Key Factors That Can Raise Your Auto Insurance Rates

Insurance companies weigh personal and vehicle-related information when calculating your premium. Common rate-increasing factors include:

• Driving record: Speeding tickets, at-fault accidents and DUI convictions typically push rates up significantly.
• Lapsed coverage: A gap in your insurance history signals risk to most insurers and may result in higher premiums.
• Vehicle type: Sports cars and high-value vehicles generally cost more to insure than practical sedans or minivans.
• Young or inexperienced drivers: Adding a teen driver to your policy often increases your rate noticeably.

Tips for Managing Your Auto Insurance Costs

Keeping your driving record clean is the most reliable way to help manage your rate over time. Beyond that, bundling your auto insurance with homeowners insurance or renters insurance can lead to multi-policy discounts. Raising your deductible, if you can comfortably cover it out of pocket, may also reduce your premium. Ask your agent whether any discounts apply to your situation, including safe driver, low mileage or good student discounts.

A Note on Uninsured and Underinsured Motorist Coverage

Texas is an at-fault state, meaning the driver responsible for an accident is generally liable for resulting damages. While Texas insurers are required to offer uninsured/underinsured motorist coverage with every auto policy, it is not mandatory for drivers to carry it, and you may decline it in writing. UM coverage applies when the at-fault driver has no insurance; UIM coverage applies when the at-fault driver has insurance but their limits are insufficient to cover your damages. A meaningful percentage of Texas drivers are uninsured or underinsured, so discussing this optional coverage with your agent is worthwhile.

Ready to Review Your Coverage?

Contact Pan American Insurance to go over your current auto insurance policy and find out whether your rate reflects the coverage options available to you.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.