I just moved to a different state and I’m being told that I have to buy a new auto insurance policy even though I just paid for a six month auto insurance policy in the previous state. The reason you have to have an insurance policy for that specific state is insurance laws can vary quite a bit from state to state. For Example, in Florida the state minimum for auto insurance liability is 10/20/10 and in Texas its 30/60/25. So if you were to move to Texas from Florida your liability limits would be too low. Liability is not the only coverage that may vary from state to state. In some states personal injury protection or PIP is a mandatory coverage (PIP is optional in Texas).
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Another reason you may have to get a new policy is the company you have now may not be licensed to do business in your state. Even if the company you are with is licensed in your new state your agent may not be. If you just moved to Texas and have questions about starting up a Texas auto insurance policy visit www.keepaustininsured.com or call me at 512.454.7799.
Have you ever opened a letter from your auto insurance company and found a notice stating that they were adding a driver that you may or may not have ever known? Most likely the driver lives in your household or at least lived in the household at one time and is probably receiving mail at your address.
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Insurance companies want to add household drivers because someone that lives in the same house as you is more likely to drive your vehicle than someone who does not live in the same household. To make sure an insurance company has all of the potential drivers added or exclude from your policy they will run reports on your address. Anyone of driving age that is receiving mail at your address could show up on one of these reports and be added to your policy.
If you receive a notice or find that your insurance premium has gone up because of an added driver there are a few things you can do.
- If the added driver lives with you but does not drive your vehicle most companies will give you the option to exclude them. Excluding a driver means that your policy will not cover them if they drive.
- If the added driver does not live in your household, let your insurance company know and the driver can be removed (sometime the insurance company will request proof of residence to remove the driver).
Another reason a driver might be added to your policy is if they were driving during the event of an accident. In this case, you will more than likely have to exclude the driver to prevent the insurance company from charging you an additional premium.
So many feelings and thoughts go through your mind when you have a young driver who is set on getting on the road. One of those thoughts is, will my insurance cover him/her? And how much will it cost me? Fortunately for you there have been many parents before you who have gone down the road of uncertainty and have given insurance companies an idea on how to handle this.
The first thing you need to know is that while your young driver has a permit your insurance should not increase at all or not much depending on the insurance carrier (I am a Progressive Independent Insurance Agent and I know for a fact Progressive charges $0 to add a driver with permit only). The reason is simple while, they have their permit it is a requirement to drive accompanied by a licensed driver over the age of 21.
Your policy may exclude your young driver or it may simply not be covered. Studies show that young drivers are twice as likely to be involved in an accident than an older driver, so before he/she gets in an accident, contact you agent.
After some time has passed (and they now qualify to get an actual license and not just a permit), the next step will be to take your raging teen to take their written and practical exam. If they pass, congratulations! You are off the hook or are you? You call your agent and tell him your child is ready to get their own insurance and when your agent hits you with that 4 digit number (premium dollar amount), you squeal! Yes insuring a young adult who has no credit history or driving experience is going to cost a lot of money.
What your agent suggest next is of critical importance; you can pay thousands of dollars to establish their insurance responsibility on their own policy or you can add them onto your policy as a driver which will save you hundreds of dollars while giving you all the responsibility under your policy for any accidents, damage to vehicle, payment of premium increase due to traffic violations etc… The choice is yours but it is a topic best discussed thoroughly with your family and insurance agent. Good luck and make sure you enforce safe driving habits on your young driver.
Visit us at www.keepaustininsured.com for more information.
I relocated and my auto insurance went up. Why?
After calling your auto insurance agent and notifying them of your move they tell you your auto insurance has increased. Below is a short explanation.
When you are initially getting a quote for auto insurance various factors are applied to determining your premium things like age, marital status, driving record, credit score and location.
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Insurance companies gather data from many sources including police reports and insurance reports and they determine the statistics for certain zip codes. Some areas are more prone to accidents due to highway access or intersections, while other areas are more likely to have a higher percentage of car theft and break- ins. If you live in the suburbs you might be exposed to hail damage and if you live in the city you will be more likely to have your vehicle dinged by a driver who flees the scene. These are just a few scenarios on why each area has its risks and exposures.
Major companies like Progressive Insurance, Travelers Insurance, and The Hartford all have factors that influence rate based on address. Other smaller companies are following this trend.
Next time you think of moving call your auto insurance agent first and let them check if you are likely to have an increase on your auto insurance because of the area, this way you will be prepared to make your moving decision.
For more information visit www.keepaustininsured.com.
The media scares us about somebody stealing our belongings, crashing our cars… I say to you, what is wrong with not having those belongings? What is wrong with cycling, walking, taking the bus, or at least not driving the fancy car and instead driving an older car if your newer one is lost? Is it really that scary? Maybe it is… I met somebody the other day who got a car repossessed only to go finance another vehicle the next day… why would the new bank underwrite that loan!?
Working in the insurance industry for almost 10 year, I learned it is the culture to get everything by means of financing (instead or truly earning it) and take no responsibility for yourself that makes us give so much money to the insurance industry. This has started a frenzy of insuring everything. We must just have it all, and everything has become indispensable and we give our material belonging so much importance that we go as far as insuring it (isn’t that crazy?)
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Isn’t it crazy the State of Texas makes us buy auto insurance (its worse in other states)? Why can’t we simply be responsible for somebody if we cause them injury? I know.. it’s difficult to process when your next door neighbor can’t think beyond next month’s bills (half of that is insurance bills!)!… This is why the State makes have insurance.
The reality is that you will never beat the insurance companies. Insurance companies are in the business of making money from selling insurance. The only way to come out ahead is by not having a desire to buy insurance. At the very least, minimize the need to purchase insurance for the true life changing situations like a fire that totals your house, health insurance with extremely high deductibles, and a term life insurance policy when you need it. This is my personal opinion. Not many agents dare to say this.
You found a job, found a place to live and moved to Texas. Now you have to get licensed and register your vehicle. Before you try to register you vehicle you will need a Texas auto insurance policy.
Getting the Texas auto insurance policy is the easy part, just call us, Bound Insurance. After you have your new auto insurance policy setup, you will need to get your vehicle inspected. Most auto repair shops can help you with this. Now that you have your insurance and inspection you will need to fill out a Form 130-V and head to your local county tax-assessor’s office. Registration cost $52.75 plus whatever fees the county you are in charges and sales tax on your vehicle.
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Getting your Drivers License in Texas will require the following:
Gather documents that verify their identity, Social Security Number, U.S. citizenship or lawful residency status, and Texas residency.
Complete the application. (This form is also available at any Department of Public Safety office)
Provide proof of Texas vehicle registration and liability insurance for all vehicles registered in the individual’s name.
Apply in person at any driver license office and bring the required documents and fees.
Pass the knowledge and driving tests, unless exempt.
To learn more about insurance requirements in Texas contact us, Bound Insurance.
For more information about Texas licensing and registration visit www.txdot.gov.
Did you know that most home insurance policies cover you for animal liability? This means that if your dog/animal bites and/or injures someone, your home insurance will fork up the bill for those injuries. Because homeowner’s insurance companies offer this coverage, they will restrict what kind of animals are allowed before they agree to insure your property.
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Exotic animals and animals with the reputation of being violent or aggressive can cause you to be turned down by most insurance companies. What animals make it onto the “exotic, violent, or aggressive” list? Well, exotic is a no-brainer – no lions, tigers, bears, or of some of the smaller pets like insect or reptiles.
Because dogs are the most common type of pet, insurance companies have made a list for unacceptable dog breeds based on statistical injury data. Breeds of dog like Doberman, Rottweiler, Pit Bull and Chow Chow usually make it to this list. The list of unacceptable dog breeds will be different with every home insurance company.
Now before you say it, we know not every Pit Bull is mean and not every Rottweiler is an attack dog, but all the jerks that breed dogs to fight and be attack dogs have ruined it for everyone. If you are in a situation like this, our recommendation will be to shop until you find a home insurance company who will accept your pet. As last resort, you may be able to find an insurance company who will insure your house with the dog, but will want to exclude animal liability.