Smart Auto Insurance Blog

A report from Terrence Stutz in The Dallas Morning News states that some legislators have proposed a change to Texas auto insurance law that could result in significant savings on auto insurance rates. Two congressional Democrats, Representative Rafael Anchia and Senator Leticia van de Putte, have introduced bills that would make the following reforms:

• Auto insurance companies would no longer be able to increase rates immediately after they inform the Texas Department of Insurance. Instead, the state’s approval would be required before any rate increase.
• The state Insurance Commissioner would be elected to the public, making him or her more accountable to Texas drivers
• Insurers would be banned from using drivers’ credit ratings to determine premiums
• Policy forms would be standardized across all insurers in the state, making it easier to compare them

Terrence says that the fate of these measures is unknown at the moment.

Have you bought or plan to buy a smaller car to save money on gas? According to Kevin Ransom of CNN, your total savings may be less than you’d think, because drivers of smaller cars (like the Ford Focus, Mini Cooper, Toyota Yaris, Honda Civic, Nissan Altima, Toyota Prius, and Pontiac G6) tend to be charged higher auto insurance rates than those of larger vehicles.

There are several reasons why smaller cars are more expensive to insure:

1. They are more likely to be used in long, extended commutes; making them more likely to be involved in accidents.
2. Drivers may be more aggressive when driving in a smaller car. For example, they might think that they can squeeze into a small gap in traffic and end up causing an accident. Someone driving a SUV, minivan, or pickup truck probably wouldn’t take that risk.
3. With all the larger cars dominating the road, it’s simply harder for other drivers to see you in a smaller vehicle. This results in a greater chance of them crashing into you.

On average, six-month premiums can differ by several hundred dollars depending on the model of your vehicle. However, rates can vary depending on the insurer. Get auto insurance quote comparisons to find the best price for you.

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