Can An Accident Affect The Cost Of Your Auto Insurance Policy?

Sometimes, regardless of how careful you are on the road, an accident happens. If this occurs and you are found at fault, your Houston auto insurance premium rates will likely increase. The reason is not that you are seen as being negligently involved in the incident, but rather that you are now seen as a greater risk.
If you are found at fault when an on-road accident happens and your auto insurance cost becomes more expensive, it is advisable to understand how fault is determined.

• If there was not another vehicle involved in the incident, you will be found at fault by your insurance company.
• When two or more vehicles are involved in the collision, blame must be assigned. There are some common incidents where it is easy to determine who is at fault. Where it is not so easy to assign blame, the police examine the scene and deliver a report determining fault.

Insurance companies usually have their own system to determine how much they will raise the policy costs of an at fault driver. Each insurer assigns a number of points to each type of accident. If the driver is then found at fault for that kind of accident, the set number of points will be placed on the driver’s record. Premium increases are determined by the number of points recorded. The driver will carry these points on his record for many years to come, and, as a result, pay an increased premium for all of those years. If the driver changes his insurance agency, the points still remain on his record.

Some insurance agencies, due to customer loyalty, refrain from penalizing their clients. This is usually only done when the client has been with the insurer for many years, or when his driving record is a good one. Including accident forgiveness on your policy is another way to prevent a penalty in the event of an accident. Most insurance companies charge extra for this added protection, and only award it when a client has an impeccable driving record. If you change your insurer, you would need to apply for accident forgiveness on your new policy.

Accidents happen, but there are ways that you can stop the occurrence from increasing your car insurance rates. For more information about how this can be done, call  Reliable Insurance Managers at 713-227-7283. We will happily answer all your questions.

What is a No-Fault Accident and Will it Affect Your Insurance Premium?

You may think a no-fault accident is an accident that was caused by situations that were not your fault.

An example of a no-fault accident would be running into a pot hole or losing traction on a sandy street. However, a no-fault accident can simply be an accident at which you are found to be the faultless party. If you are involved in a no-fault accident and you have to make a claim, you might be wondering if your insurance premium will increase.

This post will examine what the insurance is for and why it may cause your premium to increase.

What is a no fault accident?

A no-fault accident is simply an accident that's caused by anything other than you. This could be due to a flat tire causing you to lose control of the car, an oil slick in the road that causes you to lose traction and have an accident or you being hit by another driver.

No-fault accident insurance, also called PIP or personal injury protection insurance, covers damage to a car or person caused by a no-fault accident. A no-fault accident cover is an endorsement on most insurance policies and some states require a driver to have it.

These states include; Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah

Even if your state does not require it, there are many benefits to having a no-fault auto cover. Some of these benefits include being covered whether you're at fault for not and reducing the time it takes to file and receive a claim. The coverage also restricts lawsuits to only extreme injuries or death.

Will your Insurance Cover it?

The simple answer is yes, if you have no fault insurance. However if you don't have no fault insurance, it is up to your insurance provider whether they will pay out on the claim. Keep in mind that no-fault auto insurance doesn't pay for everything. There are some things that are not covered and there are some disadvantages to having this cover.

Some of these disadvantages include:

• No coverage for property damage or vehicle repair after the accident in certain states
• It only covers up to your policies max for your medical expenses
• Making a claim on your policy your premium can rise
• If your vehicle is damaged in a collision where you have no collision coverage your insurance won't pay out anything and you’ll be totally responsible for any repairs to your car or your person
• If you have limited collision coverage your insurance company won't pay out for any repairs to your car if you hit a person, another vehicle or a structure such as a building tree or pole. However if you are 50 percent or less at fault and you hit one of these items your insurance company will pay.
• You're only guaranteed a claim payout if you have standard collision coverage or broad form collision coverage.

There are benefits to having no-fault insurance but there are also disadvantages. Your premium will increase whether or not you are at fault of an accident with this cover. The best way to save money is to shop around for a good priced no-fault auto insurance policy with adequate cover.

Have any Houston auto insurance questions? Give Reliable Insurance Managers a call at 713-227-7283.

Teenage Auto-Insurance: How to Keep the Premiums Low

Houston Auto insurance companies have a way of categorizing drivers as either high-risk or low-risk drivers. Those who are deemed high-risk have to pay higher premiums than their low-risk counterparts. Incidentally, teenage drivers are classified as risky drivers, and have to pay high premiums. Luckily, there are a few things you can do to enjoy low insurance premiums for your teenage driver.

Choose the Car Wisely
Ironically, teenage drivers who are believed to have risky driving tendencies are the same ones who have a liking for fast cars, and these cars also attract high insurance rates. What you should know is that high premiums are calculated on a combination of several factors, so you can mitigate these other factors to get low premiums. On the issue of cars, you should choose an economical car for your teenager, preferably a used one. Old cars, which tend to be cheap, are also cheap to insure.

Combine Your Policies
If you have multiple policies from a single insurance firm, you should make use of this knowledge to get cheap premiums. For example, you can combine your home insurance with your teenager's insurance. You might even get lucky and land an umbrella policy, which entitles you to extra liability coverage on top of your usual coverage limits. This extra coverage may come in handy for your risky teenage driver.

Help Your Teenager to Maintain Good Grades
The motor vehicle insurance industry has a few peculiarities, and one of them is that teen students with good grades are offered low premiums. Thus, this is one of the best ways of securing low premiums for your teenage driver. This discount is usually applicable even to those who have just started high school. Most insurers are offering at least 10% discounts for teenage students averaging at least a B average grade. In most cases, it is the most recent semester that counts.

Tell the Teen to Take an Approved Drivers Education Course

This is something that most people take for granted, but it can offer substantial savings on your teenager's auto premiums. Car insurance companies have different rates for this discount, but you will at least get something. To qualify, the driver should take a course certified by the Department of Motor Vehicles. Some insurers handle this by adding some years (say a two or three) of experience so that the driver is not viewed as a very inexperienced one.

Compare Several Quotes before Buying Coverage

The age old advice of shopping around for good insurance rates still applies. Auto insurance companies charge different premiums, and if you just pick the first one that comes to mind, you may end up with high rates for nothing.

You can get these quotes online or from your insurance agent. These and other tips will help you get low rates for your teenage driver, but you may still need professional advice. If that is the case, give your Reliable Insurance Managers agent a call at 713-227-7283 and we will help you through the process.

What Makes Car Insurance Compulsory?

Car insurance has become compulsory in most countries worldwide due to a matter of concern from their government. The reason why most governments make car insurance policy compulsory is so that they can provide their citizens with financial compensation, in the case that they suffer any loss occurring due to road accidents.

Not all vehicle calamities are usually compulsory. However, a great deal of the risks involved is usually covered. Risk factors like fire, lightning, traffic collision, and body injury occurring due to vehicle tragedies, in most parts of the world are usually made mandatory by each state government. This ensures that you don’t bear all the loss, in case you happen to suffer from either of these tragedies.

Typically, different states worldwide have different laws that govern ways in which car insurance policies should be a must covered.  Nevertheless, all states worldwide usually assume that vehicles will frequently crash, and that’s why they make car insurance mandatory to every motorist. Hence, where you may injure another person, the injured party will be fully compensated by the insurance company. This is convenient because even in a situation where the driver at fault doesn’t have sufficient cash the injured party would still be compensated.

Age is another factor which makes car insurance to be compulsory in some countries. People  under the age of 25 is likely to pay a higher premium than those who are above 25 years of age. The reason why most governments consider this factor to be very important is because they think  people who are above 25 years have more driving experience and thus should pay a lower premium. Consequently, a person under the age of 25 pays a higher premium because it’s assumed he, or she is vulnerable to cause accidents due to short experience.

On the other hand, where a person under the age of 25 years under goes for further driving lessons they are likely to pay for their premium at a lower rate. The idea behind this is because most governments worldwide assume that they would have improved their driving skills hence minimize the risks of traffic collisions.

Another reason why most governments worldwide usually make car insurance compulsory is so that motorists can play a role in paying government tax. This usually enables the government to grow its country’s economy. Therefore, you'll get more opportunities in the production of products and services when your country’s economy is in a stable state.

It’s convenient that you pay for your car insurance frequently because you don’t want to fall under the arms of the law. Plus, you’ll lose nothing when you happen to be charged with a traffic collision because your insurance company would be there to compensate the injured party. So, always pay for your Houston Auto insurance, it’s very convenient and drive safely. Contact a Reliable Insurance Managers agent today for more information.

Car Safety Features that Qualify for Auto Insurance Discounts

Since the late 1980s, vehicles have been integrated with more advanced safety and security features than ever. These features have significantly decreased accidents and saved lives. Houston Auto insurance providers see the impact of modern safety and security features and offer great discounts for vehicles that are equipped with them. Sometimes, these discounts are automatically quoted, as the insurance provider can tell, using the Vehicle Identification Number (VIN), how the car is equipped.

Air Bags
Occupant and supplemental restraint systems, or commonly known as air bags, are one of the safety features required by law in most passenger vehicles. This feature works by sensing a vehicle collision of certain angle and speed of impact, and deploying the right air bags to ensure the protection of the passengers. Since most vehicles come with air bags, the discounts are automatically accounted in the insurance policy.

Anti-Lock Brakes
Anti-lock braking systems (ABS) are almost common in modern vehicles as well, but because they’re not installed in most automobiles, insurance providers may still offer a discount on your insurance policy for them. This type of safety feature helps the driver maintain a steering control of his/her vehicle on ice or snow, or even when he/she suddenly stops on a wet road.

Anti-Theft Systems
Anti-theft systems can be associated with car alarms. Most modern cars have some sort of anti-theft system. These can be a sound produced when someone opens a car door without a key, or if someone breaks the window to get in. Some anti-theft systems disable the engine and don’t allow it to function without the right key. Others come with telemetric systems that inform the police where your car is located if it’s stolen. If you have any of these anti-theft devices, make sure you notify your insurance provider so that you can get discounts on your auto insurance.  

Other Safety and Security Features
Today, there are a lot of modern safety features available and insurance providers may or may not offer discounts, but it’s better to ask. New safety features include Electronic Stability Control (ESC), which improves the safety of the vehicle’s stability by sensing and decreasing loss of traction (skidding); lane departure warning system, which warns a driver when the vehicle starts to move out of its lane on arterial roads and freeways; blind spot monitoring system, which detects other vehicles located to the side and rear of the driver; and emergency braking assist (EBA), which increases braking pressure during emergency situation.

If you want to know more information about car safety features that reduce auto insurance rate, call Reliable Insurance Managers today at 713-227-7283. We can help you get the highest possible discount on your auto insurance with the safety features installed in your car.

Are You Paying for More Insurance Than You Really Need?

You’ve probably already discovered that car insurance rates are on the rise. Luckily, cutting these costs can be as easy as shopping around for the best value and asking a Reliable Insurance agent about discounts. After performing due diligence, there may even be hidden insurance costs that could possibly be eliminated and save you even more on a Houston Auto Insurance policy today.

Most hidden car insurance costs aren’t that difficult to discover once you are aware of what you are looking for. To make sure you’re only paying what you need to, read over these tips for some common hidden car insurance costs that you might encounter:

Monthly Installment Fees

Like most consumers, you may choose to pay for car insurance policies in monthly installments. It’s convenient to be able to break up car insurance payments in smaller payments, but there is a cost to the convenience. If you pay for insurance up front you will save much more money in the long run.

Accident Forgiveness Policies

Sometimes accidents are unavoidable. After all, it doesn’t matter how well you drive, accidents can happen. Consequently, companies that offer accident forgiveness can offer you significant insurance savings.

Teen Drivers

Adding teens onto car insurance policies can be costly. However, it’s not necessary to add a teen onto the policy until they get their driver’s license. There is no point in paying higher premiums until it’s absolutely necessary.

Those Little Extras

You should look for any extras on policies that may not be necessary, or may be covered elsewhere. For instance, paying for roadside assistance is not necessary if you already have coverage through an auto club. Additionally, for cars that aren’t worth much, full coverage may not be needed. If the car is totaled, you will only get what the car is currently worth.

Cars Types Factor In

Drivers with similar credit histories and driving records can have massively different rates. Insurance companies rate cars on various factors including safety, theft rates, and replacement costs. Cars with better ratings that are safe, and not frequently stolen, will receive better rates than other cars. If you are car shopping, you should check insurance rates on each type of car before making a commitment to purchase.

These hidden costs can make a difference in the price you pay for insurance. Checking out these factors can lower premiums considerably.

What Can You Expect of Auto Insurance as You Age?

Aging changes more than just your hair color. Your auto insurance policy will be affected by both the changes to your lifestyle and your experience that aging brings on.

Auto Insurance for Young Drivers

As a young driver, you will have little experience behind the wheel. In addition, you are statistically more likely to take risks while driving that could result in a higher frequency of accidents and insurance claims. As a result, according to Insurance and Financial Advisor Web News, your premiums could be as much as 100 percent higher than those offered to older drivers.

Ages 25 to 34

Once a driver reaches age 25 they will likely see their Houston auto insurance rates drop. This is especially true of those who've had few claims in the years before. Between ages of 25 and 34, many drivers become married, start families, and buy homes. This too can lend itself to lowered risk and lowered
insurance premiums.

Ages 35 to 39

Research quoted on IFAWebNews.com found that drivers aged 35 to 39, on average, pay almost half of what drivers aged 16 to 19 pay. Again, this is the result of age and experience reducing a driver’s risk. Of course, drivers who have proven to be high risk through a history of moving violations and accident claims will not find this age-related decrease in premiums to be the case.

Ages 65 and Up

Drivers age 65 and up who have had few, if any, accident claims or moving violations will often be charged the lowest auto insurance rates of all. Part of this reduction premium could be attributed to customer loyalty after spending many decades with the same auto insurance provider. Also helping is the fact that many people in this age group log fewer daily miles than younger drivers who must commute to work each day.
We would love to work with you and help you find an auto insurance company ready to offer you the best rates for your age and driving experience. When you’re ready to get started, give us a call at 713-227-7283.

New Parents’ Guide to Insurance

As new parents, you’re probably overwhelmed by the amount of planning and the number of decisions you must make in order to ensure the comfort and safety of your newest addition. It's important that you not overlook how insurance fits in to your new role as a mommy or daddy.

Life Insurance
When you become a parent, you may want to consider creating a trust to be the beneficiary of your life insurance policy. By naming a trust, you can ensure that your death benefit proceeds don't get added to your estate or, after your death, your spouse's estate for tax purposes. In addition, you can make sure that a portion of your benefit is allocated toward your minor child at the time he or she reaches the age of majority or whenever you specify within your trust. Additionally, a trust allows you a certain amount of control over the use of your death benefits so that you can direct them to help make financial life easier on your spouse and children immediately after you pass away and later on in life.

Buying life insurance for your child gives them a financial head start when they become adults because by buying a child an insurance policy, you lock in low rates and can start creating cash values that they can take loans against later, such as when they go to college.

Disability Insurance
Your children rely on you to support them. A disability insurance policy ensures that you can continue supporting them even in the face of a disabling injury. Disability insurance gives you much more control over the receipt of benefits than Social Security and can also help you rely less on savings during the waiting period for benefits to begin.

Home or Renters Insurance
Giving children a safe place to live is one of the most basic responsibilities of a parent. With home or renters insurance, you can ensure that your children have a safe place to live even after an insurable incident makes your home unlivable as long as you have loss of use benefits. In addition, both types of insurance will help you replace your family’s lost possessions. Finally, a home insurance policy will help you get necessary repairs to make your home livable once more.

Auto Insurance
Not only is Houston auto insurance required by your state, but it also offers one of the best ways to keep your family safe. Auto insurance can help pay for liabilities you incur, removing the need to access your savings to satisfy injured parties. In addition, the medical payments can help your family afford the best care after they've been injured. It's important to note that state insurance limits may not be representative of the actual protection you need.

If you have questions about the kinds of insurance policies you should have as a new parent or you want to make changes to your insurance portfolio, give us a call at Reliable Insurance Managers.

How to Compare Car Insurance Rates and Policies

If you are searching for a new car insurance policy, your initial impulse is probably to compare insurance premiums in order to make certain that you get the best deal on your policy. But comparing rates alone will not provide you a good indication of which policy is more cost effective, dependable and better suited to your general needs. Use this list to help you narrow down your choices for all the reasons you should consider, not just cost.

1. Compare coverage options.

Check out the coverage options for all the different policies you have gotten quotes for. Make sure they are similar and that they provide you the security that is most vital to you. This may mean they only consist of state-required coverages or that they include additional protections like uninsured motorist coverage.

2. Compare deductibles and limits.

Policy premiums will differ, especially if you set different limits and deductibles on each. It isn’t a fair comparison to put a low-cost policy with high deductibles and low limits up next to one with small deductibles and high limits. So when you do your comparisons, make sure the deductibles and limits on each policy, for each coverage option, are comparable.

3. Compare A.M. Best ratings.

An insurance policy is only as good as the company that issues it. When comparing two different policies from two different carriers, don’t just center on cost, deductibles and coverages; take a look at the A.M. Best rating for every company to make sure they are alike in terms of financial standing.

4. Compare customer service and payment options.

If you like to do business on the internet, make sure that the insurance companies you are looking at have that capability. If you’d rather to converse on the telephone, make sure they can do that. Also, verify their different payment options (online, automatic draft, check, etc.) and pick the policies from those companies that have what you are searching for.

5. Compare rates.

Now that you’ve made sure that you have several comparable policies from different companies, it’s time to actually look at the rates and compare them. Be sure to check out all premium types—the annual, semi-annual, quarterly and monthly so that you get a good idea of the differences.
Once you’ve compared all these items and narrowed down your choices, you should finally come up with the policy that meets most, if not all, of your needs.

Call us at 713-227-7283 to review your current Houston auto insurance policy or customize a new policy today!

The 5 Most Common Distractions of Teen Drivers

The 5 Most Common Distractions of Teen Drivers


AAA recently released the findings of a study they conducted regarding the distractions encountered by teen drivers. The purpose of the study was to discover what preventable environmental events pulled a teen’s attention from the road. Using videos, audio clips and other data, they amassed a list of distractions encountered during real-life driving adventures.

Because this list is based on actual events, it gives us priceless data that can help us determine which topics are most important to discuss with our teens and how to teach them to be better, less distracted, drivers. Here are the five top distractions AAA researches observed.

Electronic devices:

In almost 7% of the clips AAA researchers studied, electronic devices such as cell phones were present and distracting, and female teen drivers seem especially prone to being distracted by them. Not only is it important to talk to your teen about the dangers of using a cell phone or texting while driving, but it is also important to have a system of preventative measures in place that stops them from engaging in this behavior while behind the wheel. This can include downloading apps that auto respond to text messages while your teen is driving so they feel less compelled to answer texts themselves, monitoring cell phone usage so that you can identify periods when calls were made or received while driving, and having consequences for utilizing electronic devices while driving. But it’s not just about having consequences in place—it’s also about enforcing them.

Adjusting controls:

Distraction due to adjusting dashboard controls was present in 6.2% of the data collected by AAA. Changing the radio station, raising the volume of the stereo, changing CDs, skipping tracks, and even operating some of the dashboard utilities such as directionals and windshield wipers can easily pull your teen driver’s eyes away from the road ahead. Make sure your teen understands that they must be comfortable with all dashboard controls before they begin driving and that the only appropriate time to play with the radio and CD player is when they are at a complete stop or when they are able to do so without looking at the controls. It only takes a few seconds to get into a car accident—make sure they understand that changing the radio station provides just enough distraction for that.


Attending to personal hygiene:

3.8% of the data collected by AAA showed teen drivers distracted by personal hygiene behaviors. Make sure your team understands the consequences of removing his or her eyes from the road for the three seconds it takes to put their misplaced hair back in place. Let your teen know that brushing their teeth, shaving, combing their hair and applying makeup are all behaviors that should be done before they get in the car or after they reach their destination.

Eating or drinking:

In 2.8% of the clips analyzed, a teen was distracted by either eating or drinking and sometimes both. It’s hard enough for a teen driver to learn how to interpret and react to all the information presented when they are driving—adding eating and drinking to the menu seems simple, but can result in way too much distraction and should be discouraged while they are behind the wheel.

If they must eat breakfast after leaving for school, give them something easily portable that they can munch on after they've parked the car and are walking to their first class.

Reaching for another object.

In 2.5% of the clips observed, teen drivers were distracted as they reached for another object found inside the vehicle.  Remind your teen that while driving, paying attention to the road is the most important task they have to complete. Should they need to reach for an object that is not right next to them while driving, it's a good idea to pull over and stop the car or to ask a passenger to get it.

By minimizing the distractions your teen faces while driving, you’ll not only keep them safer but also keep their insurance premiums lower. To discuss more safe driving tips for you and your teen, or to talk about Houston auto insurance rates and limits that are perfect for teen drivers, give us a call at 713-227-7283.

The Role of the Insurance Adjuster

Insurance has a fairly simple purpose: help make policy holders financially whole, up to the limits of the policy, after losses experienced during an insurable event.

While the goal of insurance is simple, its execution doesn’t always follow the same clean lines. After all, to control insurance costs you have a limit on your policy that spells out the maximum benefit you can receive. You will also have deductibles which are out-of-pocket requirements that you must meet, and finally, there is a process of examination that can follow a claim in order to ensure that everything works accurately and appropriately based on the loss you suffer.

When you submit a claim to an insurance company, your insurer owes it to all of their clients to investigate each claim. They do this for several reasons. First, they want to verify the incidents behind the loss. This helps ensure that the incident was insurable under the policy contract. Next, they want to determine the extent of the damages. This assures your carrier that they’ve awarded you the amount you deserve in order to be made whole after a qualifying insurable incident.

An insurance claims adjuster is the individual who works in the role of investigator. He or she may interview witnesses, review records, and even come out to the location of the incident to explore the damages. This can be an especially helpful exercise as the adjuster may meet with you, at the incidents location, to go over details. This may prompt you to remember items you otherwise would have forgotten...

Contact us at (713) 227-7283 to learn more about Houston auto insurance as well as home, business and car insurance in Houston, Katy and surrounding areas in Texas, or continue reading "The Role of the Insurance Adjuster"