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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 for Auto Insurance

February 19, 2010

Using the right tool for a job is key to success in any profession. Experts say the same principle applies when selecting an 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 commercial auto policy instead of a personal auto policy, courtesy of TXINSURANCEPRO.COM

• 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 con-ducting 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.

TXINSURANCEPRO.COM  is an independent insurance agency – trained, licensed insurance professionals who offer personal service and advice. We can help match you with the type of policy that best suits your needs and those of your company.

To learn more about all an independent agency offers, visit WWW.TXINSURANCEPRO.COM  or give us a call us at 214-717-4326.

Written by dberry · Filed Under Auto, Business 

Do I need a commercial auto insurance policy?

December 10, 2009

As a businessowner, you need the same kinds of insurance coverages for the car you use in your business as you do for a car used for personal travel — liability, collision and comprehensive, medical payments (known as personal injury protection in some states) and coverage for uninsured motorists. In fact, many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the “principal insured” rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.

Whether you need to buy a business auto insurance policy will depend on the kind of driving you do. A good insurance agent will ask you many details about how you use vehicles in your business, who will be driving them and whether employees, if you have them, are likely to be driving their own cars for your business.

While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical respects. Ask your insurance agent to explain all the differences and options.

If you have a personal umbrella liability policy, there’s generally an exclusion for business-related liability. Make sure you have sufficient auto liability coverage.

Written by dberry · Filed Under Business 

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 

What if I lease a car?

December 10, 2009

If you lease a car, you still need to buy your own auto insurance policy. The auto dealer or bank that is financing the car will require you to buy collision and comprehensive coverage. You’ll need to buy these coverages in addition to the others that may be mandatory in your state, such as auto liability insurance.

  • Collision covers the damage to the car from an accident with another automobile or object.
  • Comprehensive covers a loss that is caused by something other than a collision with another car or object, such as a fire or theft or collision with a deer.

The leasing company may also require “gap” insurance. This refers to the fact that if you have an accident and your leased car is damaged beyond repair or “totaled,” there’s likely to be a difference between the amount that you still owe the auto dealer and the check you’ll get from your insurance company. That’s because the insurance company’s check is based on the car’s actual cash value which takes into account depreciation. The difference between the two amounts is known as the “gap.”

On a leased car, the cost of gap insurance is generally rolled into the lease payments. You don’t actually buy a gap policy. Generally, the auto dealer buys a master policy from an insurance company to cover all the cars it leases and charges you for a “gap waiver.” This means that if your leased car is totaled, you won’t have to pay the dealer the gap amount. Check with the auto dealer when leasing your car.

If you have an auto loan rather than a lease, you may want to buy gap insurance to protect yourself from having to come up with the gap amount if your car is totaled before you’ve finished paying for it. Ask your insurance agent about gap insurance or search the Internet. Gap insurance may not be available in some states.

Written by dberry · Filed Under Auto 

What is auto insurance?

December 10, 2009

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto insurance provides property, liability and medical coverage:

  • Property coverage pays for damage to or theft of your car.
  • Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
  • Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you’re financing a car, your lender may also have requirements. Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

Written by dberry · Filed Under Auto 

Testimonials

December 3, 2009

“Texas Insurance Pro saved me $422 on my Auto Insurance Policy. Their customer service was above and beyond ordinary, and I felt that they were as concerned with saving me money as I was. Thank you!! – Carl Jefferson

Written by dberry · Filed Under Testimonials