FAQs About Texas Insurance

We are pleased to be able to provide you with answers to questions regarding your insurance. Please click on the question below to view your answer.

How is a young driver's information obtained by the automobile insurance company? How did the insurance company find out whether or not my child has a permit to drive?

I thought as I grew older my auto insurance premiums would automatically decrease.

Why is this not happening? I have a perfect driving record.

At what point should I consider deleting collision and comprehensive coverage from my policy?

Just added some custom wheels and sound equipment to my automobile, are these items automatically covered?

Can my homeowner insurance company cancel my policy because of the kind of pets I have on my premises?

Who is responsible if my neighbor's tree falls on my roof?

What should I do if my property was damaged in a storm?

Question: How is a young driver's information obtained by the automobile insurance company? How did the insurance company find out whether or not my child has a permit to drive?

Answer: Insurance companies acquire discovery rights when one initially agrees to purchase their policy. Insurance carriers have the right to discover additional licensed or permitted operators in the household where the named insured garages his automobiles. Acquiring driver's and claim history is also a part of the discovery process to arrive at a rate that equals the exposure of the newly determine driver. Should the insured decide that the new driver will under no circumstances operate their vehicle nor operate any other vehicle assuming, that driver is a minor, the insured can legally exclude the operator and not be subject to the additional premiums.

Question: I thought as I grew older my auto insurance premiums would automatically decrease. Why is this not happening? I have a perfect driving record.

Answer: It is important to know auto insurance carriers in Texas have different age parameters for adjustment of insurance premiums. This criteria is carrier specific. For example one may find his or her auto rate decreasing when they turn 55 only to see it increase again at 75. In this case, the carrier has determined from it's actuarial loss ratios it's drivers over age 75 now may pose a higher liability risk.

Question: At what point should I consider deleting collision and comprehensive coverage from my policy?

Answer: Removing collision and comprehensive coverage from a specific vehicle's coverage, requires the insured to completely understand that the responsibility of repairing or replacing that vehicle rest exclusively with the insured. The insurer bears no responsibility to restore or replace the vehicle since physical damage coverage has been eliminated by the insured. Certain collision coverage may still exist under the uninsured motorist provision if that coverage has been purchased by the insured. However, the party causing the accident must be deemed to be at fault. Many Texas insurers agree that the minimum cost for a reasonable vehicle is $2,000.00 (assuming that the vehicle being purchased is equipped with functioning air conditioning and is in a safe driving condition). Should you determine your vehicle is worth less than the stated amount, it is conceivable that the cost of collision and comprehensive coverage, coupled with the outlay of your deductible at the time of the repair, may create a unjustifiable insurance investment. Some insured base their decision on their individual financial position, raising the bar to $4,000 or $5,000, agreeing to replace the vehicle that is worth less than the stated amounts themselves rather than filing a insurance claim.

Question: Just added some custom wheels and sound equipment to my automobile, are these items automatically covered?

Answer: One should always notify his or her agent or the insurer, preferably in writing, about the custom changes to the vehicle that is being insured. Ask for acknowledgement of the receipt of your notification. The carrier may charge additional premium for the added physical damage exposure.

Question: Can my homeowner insurance company cancel my policy because of the kind of pets I have on my premises?

Answer: Insurers have the right to determine if a pet creates a high liability risk due to the nature of it's temperament. Examples: Vicious dogs, large snakes, and or poisonous reptiles.

Question: Who is responsible if my neighbor's tree falls on my roof?

Answer: The owner of tree has a duty to exercise proper care in maintaining his property, however the burden of proof may fall on you to establish the neighbor was negligent in his maintenance.

Question: What should I do if my property was damaged in a storm?

Answer: Many times homeowners are amazed that two adjacent properties can encounter the same wind and or hail storm, but be evaluated very differently by claims examiners. It is important to note that a single storm can cause enormous damage to one property, yet leave the adjoining property of a neighbor virtually unscathed. Although this analogy may seem extreme, it does point to the unstable nature of Texas storms and this coupled with the many differences in home construction and age of structure, certainly require each claim to be judged on its own merit. Texas homeowners should realize a second opinion from a reputable contractor is important, should a vast discrepancy occur between the insurance adjuster and the homeowner. Regarding interior damage, be sure to understand water damage originating from windstorm and or hail must come thru a opening caused by the named peril or perils windstorm and or hail in order to constitute coverage.

Posted by: George M. White Posted on: April 10, 2007