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Auto and Home Insurance FAQ

Auto Insurance FAQ

Do I have to have Auto Insurance?

Texas law requires drivers to be able to pay for the accidents they cause. Most people meet this requirement by buying automobile "liability" insurance. Liability insurance pays to treat people injured in an accident that you cause. It also pays to repair or replace the other driver's damaged property.

What is 30/60/25 coverage?

You must have enough liability insurance to pay up to $30,000 in medical expenses for each person injured in an accident, up to a combined total of $60,000 for everyone who was hurt in an accident. You also must have at least $25,000 in coverage to pay to repair or replace the other drivers car. This is why basic minimum liability coverage is often referred to as 30/60/25 coverage.

Who pays to fix my car?

Liability insurance pays to repair the other drivers car and does NOT pay to fix your car. A collision coverage policy pays to fix your car if its damaged in a wreck that you caused. Comprehensive coverage pays to repair or replace your car if its stolen or damaged by hail, fire, vandalism, etc. Liability insurance is required under Texas law. However, if you still owe money on your car, your lender will probably require you to have collision and comprehensive coverage. If your car is damaged in a wreck caused by another driver, the other drivers insurance will pay to fix your car, up to the other drivers policy limits.

What happens if I don't have auto insurance?

Driving without auto insurance is against the law. A law enforcement officer will require you to show proof that you have auto insurance during a traffic stop. If you are unable to show proof of insurance, you will most likely get a ticket. You could also face an additional fine for each offense, your vehicle could be impounded, and your drivers license could be suspended. If you cause an accident without insurance, you will be financially liable for any resulting injuries or property damage.

Can I get a drivers license if I don't have an auto policy?

No. All applicants for a Texas drivers license must show proof of insurance.

When do I have to show proof that I have auto insurance?

Anytime a law enforcement officer asks you for proof of insurance if you are involved in an accident or traffic violation. Also, when you get or renew your drivers license, register your car, and get your car inspected.

How do companies decide what kind of risk I might pose for an accident?

  • Driving history: One of the most important indicators of the way you will drive in the future is the way you have driven in the past. If you have accidents or tickets on your driving record, you will pay more for insurance. If you have multiple violations, some companies may even refuse to sell you a policy.
  • Age: Drivers under the age of 25, especially teenagers, pay higher rates for insurance.
  • Gender: Males under 30 typically pay higher rates than females under 30. After the age of 30, male and female drivers are generally considered equal.
  • Lifestyle: People who are married or have children tend to be involved in fewer accidents and generally pay lower rates.
  • Credit history: Statistics show that drivers with a poor credit history tend to have more accident claims than drivers with good credit. Some insurers use credit scores to help determine a drivers accident risk. Maintaining a good credit history by paying your bills on time and avoiding excess debt can result in lower auto insurance rates.

Can I buy insurance at a car dealership?

No. In Texas, insurance is only sold by an insurance agent or broker licensed by the Texas Department of Insurance (TDI).

If I have an accident while driving a friends car, will my policy pay? What if a friend has a wreck while driving my car?

In most cases, the insurance of the owner of the vehicle pays for losses, regardless of who was driving. This means that if you are in a wreck while driving a friends car, your friends policy will usually pay for it.

If I get in a wreck and the total damage is higher than the policy dollar limits, will the insurance company still cover me?

The insurance company will only pay up the amount of your policy dollar limit. The minimum liability coverage requirements might not be enough to meet your financial obligations if you are involved in a serious wreck. It is a good idea to consider buying a policy that has more than the minimum required coverage limits.

Homeowner's Insurance FAQ

Who needs this insurance?

Owners need it to protect their homes and their personal property. Renters need it to protect their personal property. Both owners and renters need it to protect against liability for injuring third persons or damaging their property.

How much insurance do i need?

This depends on the value of your property.The more coverage you purchase, the less you will have to pay out of pocket if you suffer a loss that damages your house or its contents. You will also need enough personal liability coverage to protect you from claims brought against you by others.

I have a homeowner's policy that my mortgage lender required, should it cover everything?

No! If something you want to protect is not listed specifically in your policy, it probably is not covered. Your policy may pay for the repair or replacement of your house, but may not pay for the furniture and other contents. Some things inside your home may be covered while others are not, and damage from some kinds of disasters, such as floods, are not covered at all by ordinary policies. It is important to read your policy carefully and think about the amount of protection you need. B3 Cash Solutions can help you find the coverage that is right for you.

What affects the prices?

Many different factors influence the premium that you may be charged:
  • Type of construction: Brick houses usually have lower premium rates because they are less vulnerable to fire
  • Age of the house: Newer houses typically have lower premium rates than older ones.
  • Fire protection: Your homes distance from a fire hydrant and the quality of your local fire department affect the price.
  • Amount of coverage: The amount of coverage you buy will affect the price you pay.
  • Deductible Amount: The higher the deductible you choose, the lower your premium will be.
  • Discounts: There may be discounts available for such things as smoke detectors and security systems.

What deductible should i choose?

This all depends on the amount you believe you can afford to pay out of pocket in the event of a loss. The deductible applies to property damage to your home or to its contents.

What is Property Damage?

Property Damage coverage helps to pay for damage to your house or to your personal property. Detached garages, tool sheds, and other structures may also be covered. You can choose to cover your house and contents for either replacement cost or actual cash value.

What is Personal Property?

Personal Property is the contents of your home and other personal belongings owned by you and family members living with you.

What is Replacement Cost?

Replacement Cost is the amount it would take to replace or rebuild your home or repair damage with materials of similar kind and quality without any deduction for depreciation.

What is Depreciation?

Depreciation is the decrease in value of property over time because of age or wear and tear.

What is Actual Cash Value?

ACV is the amount it would take to repair or replace property less depreciation.

Are cars and boats covered?

No! Motor vehicles are not covered.

Is jewelry covered?

Some policies have limited coverage, but you may need more coverage.

What is Additional Living Expense?

Most policies agree to pay some expenses if your home is damaged and you cannot live there while repairs are being made. This would include limited hotel, storage, and restaurant costs.

What is Personal Liability?

This coverage protects you against claims brought against you by others claiming that they were hurt or that their property was damaged by something you did or failed to do. This coverage will pay the claim and your legal fees but only up to the limit of liability. This coverage protects you and your family members who live with you. Coverage is not covered if injury or damage is intentionally caused by any member of the household.

What is Medical Payments coverage?

No matter who is at fault, this coverage pays medical expenses for others accidentally injured on your property.This does not apply to your or any family who lives with you.

Could I have to much Insurance coverage?

Yes. Depending on the value of your home or other possessions, you may be paying for more coverage that you really need, or for certain kinds of coverage that you are unlikely to ever use.

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