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CAR INSURANCE MYTHS DEBUNKED

June 21, 2010

Is it more expensive to insure red cars? Is Comprehensive coverage really comprehensive? Should you and your neighbor be paying the same amount for car insurance?

Leading car insurer Progressive debunks a few of the more widely held myths:

Myth: Red cars cost more to insure.
Reality: Vehicle color is not a factor used to calculate car insurance rates. Factors that do matter are the year, make, model, body type, engine size and age of your car, as well as information about the drivers on your policy.

Myth: I only need the state-required, minimum amount of car insurance.
Reality: Many states have minimum car insurance requirements, but the required liability-only insurance may not cover all your costs. If you cause an accident, your insurance might not cover all the damages. Consult with your local independent agent to select the coverages and sufficient limits that meet your needs so that a fender bender doesn’t cost you big bucks.

Myth: Comprehensive coverage protects drivers in all situations.
Reality: Comprehensive coverage is one type of protection available on an auto insurance policy (others being Collision, Uninsured Motorist, etc.). Comprehensive coverage pays only for damage caused by an event other than a collision, including fire, theft, vandalism, weather and more.

Myth: My car insurance rates will be similar to my neighbor’s rates.
Reality: Car insurance rates are individually determined, so factors such as age, driving record, type of vehicle, and marital status are considered. Each person’s situation is unique and car insurance rates will vary because of this.

Myth: If I buy a new car, my auto insurance company automatically knows and my new car is covered.
Reality: No. Most insurance companies require that you notify them or your agent within a specified number of days. Generally, you have 30 days to add the new vehicle to your policy.

For more information, talk to your local agent or contact us at info@txinsurancepro.com.

Written by dberry · Filed Under Auto 

FOUR QUESTIONS TO GET THE RIGHT TEXAS AUTO INSURANCE COMPANY

June 17, 2010

Using the right tool for a job is key to success in any profession. Experts say the same principle applies when selecting a Texas auto insurance policy. Having the right type of policy can help ensure that you, your employees and your business are all protected in the unfortunate event that one of your vehicles is involved in an accident.

If you’re a business owner and you or your employees use a vehicle for business-related deliveries or to carry certain materials to and from a job site, you may need a commercial auto insurance policy that’s tailored to more closely suit the needs—and risks—of a business vehicle operator.

Here are some questions that can help you determine if you might need a Texas commercial auto policy instead of a personal auto policy:

  • Do you need more liability coverage than your personal auto policy provides? Generally, a commercial auto policy provides higher limits of liability, but less or no coverage in areas that are typically not associated with commercial auto risks.
  • Do you need special coverage for situations associated with conducting business? Commercial auto policies also usually offer certain coverages—such as hired and non-owned auto coverage and coverage for towing a trailer for business use—that are not available with personal auto policies.
  • Do you need to list any employees as drivers? You can do this with a commercial auto insurance policy.
  • Do you use your vehicle for business purposes? If you use your vehicle for things like pizza or newspaper delivery, catering, door-to-door consulting service, landscaping or snowplowing service, logging business, day care/church retreat van service and/or farm-to-market delivery, you might need a commercial auto policy.

Your independent insurance agent TXINSURANCEPRO.COM can help match you with the type of policy that best suits your needs and those of your company.

Written by dberry · Filed Under Auto 

Does your Texas auto insurance company offer accident forgiveness?

June 15, 2010

If you have auto insurance in Texas, you have probably heard insurance companies making claims that they will forgive your first accident.  That is right.  I said many Texas auto insurance companies will forgive your accident.  Before you run to the nearest parking lot and hit back into your neighbor’s car, you’d better check the fine print.

Each company has a different definition of accident forgiveness.  Here are a few questions to ask when your auto insurance company says that they will forgive your accident.

  1. What’s the threshold? Some Texas Insurance companies will forgive all your accidents under a $400 or $500 payout.  So if you bump into your neighbor’s car and they insist on calling your insurance company, low cost claims under $400 will be completely forgiven.  As a result, your rates won’t change.
  2. Will I lose any discounts? Some Texas auto insurance companies like to play games with the accident forgiveness.  Their pricing is so complicated that even if they forgive an accident, you still lose an accident free discount.  As a result, even though they forgave your accident, you still got a rate increase because you lost the accident free discount.  Is that confusing or what?
  3. Do I pay more for accident forgiveness?  Some car insurance companies actually make you purchase a higher level of coverage so that you can get “unlimited” accident forgiveness.  This may be a good package if you have a teenager with a bad driving record.  However, if you have a clean driving record, I thought the purpose of the exercise was to save money on your car insurance.  So if your agent says that you have the Gold or Platinum package, you might want to continue looking around.
  4. How long does it take to earn accident forgiveness? Some auto insurance companies offer accident forgiveness only been claims free or “surcharge” free for a number of years.  While other companies offer accident forgiveness after you have been insured with them for a number of years without an accident.  Each Texas insurance company has their own version of earning accident forgiveness.

Accident forgiveness can be an extremely useful tool on your Texas auto insurance policy.  As we previously mentioned, each company has different definitions for their accident forgiveness and claims free discounts.  The next time you shop for insurance in Texas, these four questions can go a long way into helping you decide which insurance company and insurance agent is best for you.

Written by dberry · Filed Under Auto 

Will my insurance cover renting a car after an accident?

December 10, 2009

Many drivers don’t think about their insurance coverage until after they have an accident and call their insurance company to file a claim to help pay for car repairs, a rental car and other expenses.

Unfortunately, many insured drivers are surprised to find out that their auto insurance does not automatically cover the cost of a replacement rental car after an accident. Since the average car is in the repair shop for two weeks after an accident, it can cost as much as $500 to rent a replacement car. But, some insured drivers pay little or nothing to rent a car because of an inexpensive but often overlooked option known as rental reimbursement.

Rental reimbursement coverage is available for only $1 or $2 a month with almost every auto insurance policy, but it is bypassed frequently by those who believe they will not have a car accident or those shopping only for the lowest cost premium. The cost of a rental replacement car adds up fast, so even if you don’t have an accident for eight or nine years, the coverage pays for itself when you need it most.

Sometimes working out the details of a claim with the auto insurance company can take time. Even if the accident is the other driver’s fault, you may have to wait several days or longer to get the other insurance company to agree to pay for a rental car. With your own coverage, there is no waiting.

Written by dberry · Filed Under Auto 

How much coverage do I need?

December 10, 2009

Almost every state requires you to buy a minimum amount of liability coverage. Chances are that you will need more liability insurance than the state requires because accidents cost more than the minimum limits. If you’re found legally responsible for bills that are more than your insurance covers, you will have to pay the difference out of your own pocket. These costs could wipe you out!

You may want to talk to your agent or company representative about purchasing higher liability limits to reflect your personal needs. You may also consider purchasing an umbrella or excess liability policy. These policies pay when your underlying coverages are exhausted. Typically, these policies cost between $200 and $300 per year for a million dollars in coverage. If you have your homeowners and auto insurance with the same company, check out the cost of coverage with this company first. If you have coverage with different companies, it may be easier to buy it from your auto insurance company.

In addition to liability coverage, consider buying collision and comprehensive coverage. You don’t decide how much to buy. Your coverage reflects the market value of your car and the cost of repairing it.

Decide on a deductible—the amount of money you pay on a claim before the insurance company reimburses you. Typically, deductibles are $500 or $1,000; the higher your deductible, the lower your premium.

Written by dberry · Filed Under Auto