Paying for pricey BMW M5 insurance in Austin can eat up your savings and require stricter spending habits.
Surprisingly, a recent survey revealed that 70% of consumers have stayed with the same insurance company for over three years, and 38% of customers have never shopped around. With the average premium in Texas being $2,679, drivers could save themselves 70% a year just by getting comparison quotes, but they don’t invest the time required to compare rate quotes online. Companies like GEICO, Farmers Insurance and State Farm all claim big savings with fancy advertisements and it can be hard to ignore the propaganda and take the time to shop coverage around.
The following companies offer free rate quotes in Texas. If the list has multiple companies, we suggest you visit two to three different companies to get the most affordable price.
|Model||Comp||Collision||Liability||Medical||UM/UIM||Annual Premium||Monthly Premium|
|M5 4-Dr Sedan||$416||$920||$430||$26||$128||$1,920||$160|
|Get Your Own Custom Quote Go|
Data based on single female driver age 50, no speeding tickets, no at-fault accidents, $250 deductibles, and Texas minimum liability limits. Discounts applied include multi-vehicle, homeowner, multi-policy, safe-driver, and claim-free. Rate information does not factor in specific zip code location which can affect price quotes significantly.
Irresponsible driving raises your rates
The illustration below highlights how traffic violations and at-fault collisions can influence BMW M5 car insurance costs for each age group. The premiums assume a married female driver, comp and collision included, $100 deductibles, and no other discounts are factored in.
Difference between liability only and full coverage rates
The chart below visualizes the comparison of BMW M5 insurance prices with and without physical damage coverage. The data assumes no claims or driving citations, $1,000 deductibles, married female driver, and no discounts are taken into consideration.
When to drop comprehensive and collision
There is no definitive guideline of when to exclude full coverage on your policy, but there is a general school of thought. If the yearly cost for physical damage coverage is more than 10% of the replacement cost minus the deductible, then it might be time to consider dropping full coverage.
For example, let’s assume your BMW M5 claim settlement value is $7,000 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, you would only receive $6,000 after the policy deductible has been paid. If you are paying in excess of $600 a year for comprehensive and collision coverage, then it may be the right time to buy liability only.
There are some situations where eliminating full coverage is not recommended. If you still owe a portion of the original loan, you are required to maintain full coverage to protect the lienholder’s interest in the vehicle. Also, if you cannot afford to purchase a different vehicle if your current one is damaged, you should keep full coverage.
Three good reasons to insure your BMW vehicle
Despite the high cost of buying insurance for a BMW M5 in Austin, paying for auto insurance serves a purpose in several ways.
- The majority of states have mandatory liability insurance requirements which means state laws require a specific level of liability insurance coverage if you don’t want to risk a ticket. In Texas these limits are 30/60/25 which means you must have $30,000 of bodily injury coverage per person, $60,000 of bodily injury coverage per accident, and $25,000 of property damage coverage.
- If you have a loan on your BMW M5, most banks will have a requirement that you buy full coverage to guarantee payment of the loan. If you cancel or allow the policy to lapse, the bank may buy a policy for your BMW at a much higher rate and force you to pay the higher price.
- Auto insurance protects both your BMW M5 and your assets. It will also provide coverage for medical bills for not only you but also any passengers injured in an accident. As part of your policy, liability insurance also covers all legal expenses up to the policy limit if someone files suit against you as the result of an accident. If damage is caused by hail or an accident, comprehensive (other-than-collision) and collision coverage will pay to restore your vehicle to like-new condition.
The benefits of carrying enough insurance greatly outweigh the cost, especially with large liability claims. In a recent study of 1,000 drivers, the average customer is overpaying more than $869 every year so shop around at every renewal to be sure current rates are still competitive.
Smart Buyers Know How to Buy Auto Insurance Cheaper
Lots of factors are considered when you get a price on insurance. A few of the factors are predictable such as traffic violations, although others are more transparent such as your marital status or how safe your car is. Part of the auto insurance buying process is learning the rating factors that aid in calculating auto insurance rates. When you know what positively or negatively impacts premium levels, this empowers consumers to make smart changes that could help you find big savings.
The following are most of the major factors used by your company to calculate your premiums.
- Rural areas have lower prices – Having an address in a rural area has definite advantages when it comes to auto insurance. Urban drivers have to deal with more auto accidents and much longer commute distances. Fewer drivers means reduced accidents in addition to fewer liability claims.
- Don’t skimp on liability coverage – A critical coverage on your policy, liability insurance provides coverage if ever you are found to be at fault for damages caused by your negligence. This coverage provides legal defense coverage which can cost a lot. This coverage is relatively inexpensive as compared to coverage for physical damage, so drivers should make sure they buy enough to cover all assets.
- Drive less and get lower rates – Driving more miles annually the more it will cost to insure it. Most companies rate vehicles determined by how the vehicle is used. Autos that sit idle most of the time receive better premium rates than those that get driven frequently. It’s always a good idea to double check that your auto insurance policy is showing how each vehicle is driven, because improper ratings can cost you money. Improper usage on your M5 may be costing you.
- Cheaper rates using theft deterrents – Buying a car with an alarm system can help lower your premiums. Theft deterrent systems like vehicle immobilizer systems, General Motors OnStar and LoJack tracking systems can help prevent your vehicle from being stolen.
- Always keep your policy in force – Driving with no insurance is not a good idea and companies may charge more for letting your insurance coverage expire. Not only will you pay higher rates, being ticketed for driving with no insurance could earn you fines and jail time.
- Better prices on cars with good safety ratings – Vehicles that have high safety ratings tend to be cheaper to insure. Safer cars reduce injuries and any reduction in injury severity means less claims paid which can mean better rates for you. If your BMW M5 scored better than an “acceptable” rating on the Insurance Institute for Highway Safety website or four stars on the National Highway Traffic Safety Administration website it may cost less to insure.
- Single drivers take more risk – Getting married actually saves money on your policy. Having a significant other means you’re more mature than a single person and it’s statistically proven that married drivers get in fewer accidents.
- High comp and collision deductibles reduce premiums – Your deductibles define how much you are willing to pay if you file a covered claim. Physical damage insurance, also called ‘full coverage’, covers damage that occurs to your car. Examples of some claims that would be covered are a windshield broken by a bird, hail damage, and damage from wind. The more damage repair cost the insured has to pay upfront, the less your company will charge you for insurance.
- BMW M5 claim data – Auto insurance companies use past loss statistics for each vehicle when they calculate premium costs for each model. Models that the data shows to have high amounts or severity of claims will have higher rates. The table below outlines the actual insurance loss data for BMW M5 vehicles.
For each coverage category, the claim amount for all vehicles, as an average, is a value of 100. Values that are under 100 suggest losses that are better than average, while percentage values above 100 indicate higher probability of having a loss or an increased chance of a larger loss.
BMW M5 Insurance Loss Statistics
Specific BMW Model Collision Property Damage Comp Personal Injury Medical Payment Bodily Injury BMW M5 4dr 284 94 373
Empty fields indicate not enough data collected
Statistics from IIHS.org for 2013-2015 Model Years
Affordable rates by taking advantage of discounts
Car insurance is neither fun to buy or cheap, but you might be missing out on some discounts that may help make it more affordable. Some discounts will apply at the time you complete a quote, but less common discounts must be asked for before being credited.
- Responsible Driver Discount – Drivers who don’t get into accidents may save up to 50% more as compared to drivers with claims.
- Defensive Driving Course – Passing a driver safety course could cut 5% off your bill and easily recoup the cost of the course.
- Discount for Life Insurance – Not every insurance company offers life insurance, but if they do you may earn better prices if you take out life insurance from them.
- Sign Early and Save – A few companies offer discounts for signing up prior to your current M5 insurance policy expiring. You may see this discount when you get Austin auto insurance quotes online.
- Clubs and Organizations – Joining a civic or occupational organization in Austin could qualify you for a break on your next renewal.
You can save money using discounts, but most credits do not apply to all coverage premiums. Most only cut the price of certain insurance coverages like comp or med pay. Just because you may think all the discounts add up to a free policy, it just doesn’t work that way. But all discounts will lower your policy premiums.
Auto insurance companies that may offer quotes with most of the discounts above are:
When comparing rates, check with every prospective company which discounts can lower your rates. Savings might not be offered on policies everywhere. To find insurers that offer discounts in Texas, click here.
Local Austin insurance agencies
Many drivers prefer to sit down and talk to an agent and that is not a bad decision Most agents are trained to spot inefficiencies and help you file claims. One of the benefits of getting free rate quotes online is that you can obtain the lowest rates and still have an agent to talk to.
Upon completion of this short form, the coverage information gets sent to local insurance agents in Austin who will give you quotes for your business. You don’t have to do any legwork since price quotes are sent to you. If you wish to get a rate quote from a specific car insurance provider, you would need to jump over to their website and give them your coverage information.
Choosing an insurer shouldn’t rely on just a cheap price quote. Any agent in Austin should be willing to answer these questions.
- Will your rates increase after a single accident?
- Do they write coverage based solely on cost?
- Do they have designations such as AIC, CPCU, or CIC?
- Does the agency have a positive business rating?
- When do they do a full risk review?
- How much can you save by raising your physical damage deductibles?
- How are claims handled?
- Can you choose the body shop in case repairs are needed?
If you are wanting to find a reputable insurance agent or broker, there are a couple of different types of agents from which to choose. Car insurance agents in Austin may be either exclusive or independent agents depending on their company appointments. Either one can properly insure your vehicles, but it is a good idea to know the subtle differences since it could factor into the selection process.
Agents of this type can only place business with one company and some examples include Allstate, Farmers Insurance, State Farm, and AAA. They usually cannot place coverage with different providers so you might not find the best rates. These agents are well trained on their company’s products and that allows them to sell at a higher price point.
Below is a list of exclusive insurance agents in Austin that are able to give rate quotes.
Jane McQuiggin-Hutson – State Farm Insurance Agent
2307 W Parmer Ln – Austin, TX 78727 – (512) 973-8501 – View Map
Independent Insurance Agents
Independent agencies are not employed by one company so they have the ability to put coverage through many different car insurance companies and find you the best rates. If they find a cheaper price, they can switch companies in-house and you stay with the same agent. When shopping rates, you need to get quotes from multiple independent agents to get the most accurate price comparison.
Below are independent agencies in Austin who can help you get price quote information.
Affordable car insurance rates are available
Lower-priced car insurance in Austin can be bought on the web and from local insurance agents, so get free Austin auto insurance quotes from both of them to get a complete price analysis. Some car insurance companies do not provide price quotes online and usually these small, regional companies prefer to sell through local independent agencies.
While you’re price shopping online, it’s not a good idea to skimp on coverage in order to save money. In many instances, consumers will sacrifice collision coverage and found out when filing a claim they didn’t purchase enough coverage. Your goal should be to get the best coverage possible at an affordable rate.
Even more information can be found by following these links:
- Choosing an Insurance Company (Insurance Information Institute)
- Who Has Cheap Auto Insurance for a Ford F-150 in Austin? (FAQ)
- How Much are Car Insurance Rates for a Subaru Outback in Austin? (FAQ)
- Bodily Injury Coverage (Liberty Mutual)
- Five Steps to Filing an Auto Insurance Claim (Insurance Information Institute)
- Insuring a Leased Car (Insurance Information Institute)
- Driving in Bad Weather (Insurance Information Institute)