Life in Texas can be more affordable than in other parts of the country. The average cost of car insurance in the United States is $1,666.62, while in Texas it only costs $1,492.00 per vehicle per year. This might also have something to do with the fact that state laws strictly prohibit drivers from using their cars on public roads without car insurance – or at least without some form of financial responsibility. If you want to learn more about how Houston car insurance premium costs are calculated, read on for some basic explanations.
Location makes a difference to Houston car insurance premium costs
Most everybody knows that the cost of car coverage will greatly differ depending on where you live, but if you’ve haven’t lived in Texas until now, you might not be aware of the full extent of those differences. For instance, did you know that you will pay twice as much for car insurance in Houston than you would in Wichita Falls? Houston isn’t even the most expensive place in Texas in terms of car insurance – in fact, it only ranks fourth, with an average premium rate of $1,640, after Edinburg ($1,651), Northeast Texas ($1,705), and Allison ($3,385). The least expensive premium rates in the state are all to be found in Wichita Falls ($1,105 to $1,110).
You ought to keep your driving record clean for lower premiums
Houston car insurance premium costs are directly impacted by one’s driving records. That might strike you as unfair at first, but try to think about it from the point of view of the insurer, as well. The more accidents and moving violations you have on the record, the more likely you are to pose a risk to your insurance company. After all, insurance is a business and they want to make money, not risk losing it. And don’t think all violations of the law were created equal either. A speeding ticket shouldn’t be much cause for concern, although it, too, will increase your premium costs by a few bucks. Major issues, such as a DUI or an accident in which you were at fault, though, will be sufficient grounds for a major premium cost increase. Some insurers might even regard you as too much of a risk to keep you on their tabs – don’t be too surprised if they decide to cancel out your insurance altogether, in the event of a very serious offense.
The newer the car, the higher the premium costs
This one might be a bit counter-intuitive at first, but the fact remains that Houston car insurance premium costs for a new model vehicle will likely be higher than those for an older car. How so? The answer this time has to do with repair costs rather than with risk management. A newer car is more expensive. Its higher market value would drive post-accident repair costs to a higher threshold than those on an older car. Since the point of insurance is to cover for worst case scenarios such as total losses, if you own a new(-ish) car, brace yourself for some heavy-duty insurance premium costs.