If you are a new driver or a new resident of the Forth Worth, TX area, then you might be wondering what type of car insurance is required by law to obtain your license and how you can get the cheapest premiums possible. The average yearly auto insurance premiums in TX are slightly higher than that national average with the national average being $889 and the average in TX is $934. However, there are ways to lower your premiums.
First of all, if money is an issue, you just need to know the bare minimum insurance standards required by law. In Fort Worth, and in all of Texas, there is the 30/60/25 law. It breaks down like this, you must carry:
$30,000 bodily injury liability per person
$60,000 bodily injury liability per accident
$25,000 property damage liability per accident
It is important to note that liability coverage means that only the other party receives compensation when you are in an accident. If you cause an accident and there is damage to your car or medical costs for the personal injury you will not receive any benefits and must pay your own hospital expenses and car repairs out of pocket.
If you have a newer car, cannot risk being left without a car or with high medical debt, and can afford a higher yearly premium then you might want to consider adding on full coverage for accidents or other property damage such as theft or weather related damage. It is not required by law however, so if you need to save money you are free to opt for liability coverage only.
Best Auto Insurance in Fort Worth
If you’re looking for the best auto insurance in Fort Worth, but want to keep competitive prices, then you need to do some comparison shopping. Insurance companies use complex risk tables to come up with quotes but many look at the same major components such as vehicle information, zip code, driving record, and other factors. The best service and the cheapest price don’t always go hand in hand, but whether you are looking for high standards or lowest rates, you want to make sure you have all the coverage you might need.
But that coverage isn’t for you, the driver, it covers costs for the other person in the accident, the one that isn’t at fault. To get your own damages covered you will need full coverage (comprehensive + collision).
Most people buy new and used cars with the help of financing through a bank. If you’ve financed your vehicle the bank will require you to take out full coverage.
Cheapest Auto Insurance For Good Drivers In Fort Worth, Texas
- Texas Farm Bureau: $1,041 per year. ($441 for liability only)
- Geico: $1,207 per year. ($559 for liability only)
- Republic Group: $1,351 per year. ($858 for liability only)
- Auto Club of SoCal: $1,478 per year. ($638 for liability only)
- State Farm: $1,610 per year. ($754 for liability only)
*Note - Texas Farm Bureau is a membership insurance group, you must be a member and pay yearly dues.
What If You Have One Car Crash On Your Record?
Many insurance companies offer accident forgiveness for one crash if everything else is in good standing. However, having an accident can increase your premiums a bit.
Here are the top 5 cheapest choices for drivers with one accident:
- Texas Farm Bureau: $1,210 per year.
- Republic Group: $1,351 per year.
- Geico: $1,917 per year.
- State Farm: $2,140 per year.
- Auto Club of SoCal: $2,310 per year.
Tips On How To Lower Your Rate Even More
Once you’ve found the insurance company that offers the best program and lowest rates for your personal situation, you can lower your monthly cost even more with these tips:
- Apply for any discounts offered. Sometimes you’ll have to add a safety device or take a defensive driving course to get a discount. You can also get professional discounts, discounts for good grades, or having no accidents.
- If you elect to have your payments auto-drafted from your bank account you can get a significant discount, the same goes for paying 6 months to 12 months in advance.
- If your rates are affected by tickets or accidents, find out when the drop-off date is and follow up to make sure your rates change once this time frame has passed.
How to Reduce Your Car Insurance Rates in Fort Worth
Fort Worth has lots of drivers, and Texas has a complex and expensive infrastructure system to accommodate them. Tarrant County had over one million registered vehicles in 2015, according to the Texas DMV.
The sheer number of drivers in the area increases your on-road risks. Higher risks make it more likely you'll pay more for your car insurance. No one wants to pay exorbitantly high prices for coverage, so what can you do to reduce your rates?
Car Insurance in Fort Worth
The average price for car insurance in Texas is around $1,500 per year. However, this is only an average.
Different factors influence a region's car insurance rates. The number of claims, the number of accidents, and the population in your local area often affect the price you will pay. Generally, urban areas see higher prices on average than those in rural areas. Because Fort Worth is a densely populated area, car insurance rates may run higher.
That said, you can take steps to rein in high car insurance premiums — all while staying safe on the road.
Reducing Your Car Insurance Rates
All Texas drivers have to carry minimum levels of car insurance. Failing to do so could result in penalties. Therefore, if you live in Fort Worth and drive a vehicle, you should make sure you carry an adequate amount of car insurance.
But you don't have to overpay for this coverage. Here are some ways you can lower your rates.
Talk to your insurance agent.
A policy that works for someone else might not work for you. Your agent can help you tailor your policy directly to meet your needs. An independent agent will likely compare policy options from multiple insurance companies. They can develop an appropriate plan of coverage, while still assuring you an affordable price.
Opt for a higher deductible.
If you're involved in an incident and need to file a claim, you'll first pay the cost of your deductible for repairs. Your insurance company will then issue a payout for the remainder of the claim. If you opt for a higher deductible, that makes you less of a risk to your insurance company. That, in turn, may reduce your costs.
Be a responsible driver.
Fort Worth is notorious for traffic congestion and construction. Road conditions can change instantly. Make sure you respect the road and all other drivers.
Take care of your vehicle.
Proper maintenance makes you a more responsible owner. It also reduces the chances that you will ever have to file an insurance claim — as your vehicle will be less likely to break down on the open road.
Navigating Fort Worth exposes you to risks on the road. Carry the correct insurance, but don't overpay for your coverage.
How to Lower Your insurance as a Retiree
As a resident of Fort Worth, you live and work in one of the most economically prominent areas in Texas. However, some day you'll probably want to hang up your badge and retire.
Upon retirement, you probably won't make the same amount of money you made while working. Nevertheless, you will still have bills to pay. These might include insurance costs, including your auto insurance premiums. Since your income will change, it's often a good idea to work on reducing these costs. Doing so might help you stabilize your long-term financial security.
Auto Insurance for Retired Drivers in Fort Worth
Tarrant County has more than 1.6 million registered drivers. Because Fort Worth is a heavy-traffic area, drivers might pay more for their insurance than they would in less-populated areas. The average cost of a policy in Cowtown is more than $2,200 per year.
Older drivers might pay more or less than the average rate in the region. In fact, your auto insurer might use your age as a factor that influences the rate they provide you. This is because many older drivers may have higher risks of filing an auto insurance claim. With this in mind, it is important for retired drivers to seek out the most affordable prices possible for their age bracket.
Reducing Your Auto Insurance Costs in Retirement
If you’ve retired, a $2,200 annual premium average might seem like a lot of money. After all, you might have to manage a pension, a retirement account and other expenses. You don’t want your auto insurance premiums to drain your hard-earned savings. But have no fear! There are ways you can work to reduce your auto insurance costs during your retirement.
- Consider lowering your policy limits. You might not need high coverage limits, as you might drive less in retirement. However, if you still use the vehicle frequently, you might want to keep your existing limits. You might also want to keep higher limits for financial protection in the event you make a claim. With higher limits, you may have to pay less out-of-pocket for a claim.
- Adjust your policy to reflect how often and how far you drive. For example, if you won't be commuting every day, lower mileage and usage may result in lower premiums.
- When you buy a new car, consider buying one of lesser value. You may not need as many vehicle perks in retirement as you did when working.
- Ask your insurer about discounts available to retirees. Safe-driving, auto-payment and long-time customer discounts may be available. Also, membership in certain organizations like AARP might qualify you for discounts.
Will Losing My License Raise My Insurance Rates?
The average Fort Worth driver pays around $775 per year for their car insurance. That's higher than the state average of $677, so you'll want to keep your rates as affordable as possible. Yet, frequent mishaps behind the wheel might cause your rates to go up. One of the clearest signals that you might face a rate hike is if you receive a driver's license suspension. Why do these penalties cause your rates to rise?
Why License Suspensions Occur
There are a few different classifications of losses of driving privileges.
- A license suspension is a probationary period during which you cannot drive. You'll be able to resume driving on the same license after you have met certain benchmarks.
- A revocation is a permanent loss of your driving privileges. These often last indefinitely.
- Some states place drivers on license restrictions. They might limit how far a driver can travel, or the hours in which they can operate.
The reason a loss of privilege might occur is because a driver has shown they are a severe risk to others on the road. The limitation or removal of privileges might be one of the only ways the authorities can control this risk.
Some of the penalties that might lead to loss of privileges include:
- Severe or frequent at-fault accidents
- Multiple speeding or reckless driving tickets
- DUIs
- Commission of a crime behind the wheel
Why Car Insurance Rates Rise After License Losses
When you lose your license, you legally cannot drive, and should not attempt to do so. The state now classifies you as a significant risk. This risk will become clear to your insurance carrier.
Because of this new level of risk, you likely have a higher chance of filing a claim on your car insurance. That means your insurer also has a higher chance of having to pay on your behalf. That is a cost risk to them. As a result, they might have to raise your premiums to accommodate these risks. In some cases, the risk will even prove too high, and the insurer might cancel your coverage. If you hadn't gotten a license suspension, you might have been able to avoid the rate hike.
The bottom line is, you should strive to always keep your license active and unrestricted. You'll be able to hit the road around Fort Worth while keeping an affordable insurance rate.
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