Why Do I Have To Start A New Auto Insurance Policy When I Move To A New State?

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).

Auto Insurance Austin TX

Auto Insurance Austin TX

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.



Why Did My Auto Insurance Company Add Another Driver To My Policy?

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.

Auto Insurance Austin TX

Auto Insurance Austin TX

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.

  1. 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.
  2. 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.


How To Beat the Evil Insurance Company! A Pessimistic View on Insurance Needs – Don’t Over Spend On Auto Insurance

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?)

Auto Insurance Austin TX

Auto Insurance Austin TX

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.


Gone To…Texas – How To Switch Your License and Auto Registration To Texas

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.

Auto Insurance Austin TX

Auto Insurance Austin TX

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.





What Is Full Coverage Auto Insurance And What Does It Cover?

When asked what coverage is needed on an auto insurance policy many customers will reply “full coverage”.  This troubles me because there is no full coverage.  Full coverage is insurance industry slang that implies that an auto insurance policy has liability, comprehensive, and collision.  Comprehensive and collision cover physical damage to your vehicle and liability covers what damage you cause to other.

Auto Insurance Austin TX

Auto Insurance Austin TX

What most Texas insurance agents consider a full coverage policy does not include uninsured motorist, personal injury protection, or rental reimbursement.   The reason this is so common is when buying a new car liability is required by the state and comp and collision are required by the company financing the car.  Do you know what your current auto insurance policy covers?  It’s a good idea to review your policy every time you come up for renewal or shop your rate so you can be sure to know what you are covered for.  Learn more about individual coverages at www.keepaustininsured.com or call me at 512.454.7799.