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.

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.

How High Can Insurance Rates Go?

There has been a lot of talk in the news lately about the increase in insurance rates. The past decade has been difficult for insurers, especially home, auto and flood insurers, as increasingly frequent and violent storms have caused massive damage throughout the country. So the jump in rates is not exactly unexpected. But when homeowners and auto owners open their insurance renewal packets each year and see rates rising, a panicky feeling often ensues that leaves us all wondering just how high these rates can go.
In reality, when you open your bill and see an increase in your insurance premium, if you compare the cost of your insurance against the value of the property you're protecting, in addition to the liability claims the insurance is shielding you from, you will probably calm a little as you realize the intrinsic value of your specific policy. The price of insurance is not likely to increase to the point where it's simply not worth having anymore. But insurers need to price policies appropriately so that they are collecting enough in premiums to actually pay the claims presented by policyholders.
When an insurance company increases your rates, it doesn't generally do so without logical justification. There will be an underlying, important purpose behind the rate hike. For example, it could be due to an increase in the risk that you present to the insurance company, or it could have to do with the impact of inflation on the overall cost of replacing or rebuilding your property. Both of these are completely valid and understandable reasons for increases and they don't generally result in a significant escalation in rates.
Of course, that doesn't mean that you should just roll over and accept change in your premium from year to year. Review your policies to make sure your coverage options are still appropriate for your level of risk and the value of your property. Also, make sure that your deductibles and limits make sense and ensure that you're taking advantage of every discount available to you. Further, if applicable, be sure to resubmit any information to underwriting that could change your premium. To make sure you’re getting the best deal you possibly can, compare rates at least annually—insurance is a competitive industry and if you’re not finding value in the protection offered with your current provider, perhaps it’s time to look elsewhere.
The question of how high insurance rates can go should not be the primary concern of insurance policyholders; instead, policyholders should be more concerned about conducting an annual insurance review and comparing quotes with other policies to make sure that they’re appropriately covered and getting the best deal for the coverage they need. To find out more about how you can schedule your annual policy review and compare Houston auto insurance quotes, give us a call at Reliable Insurance Managers today.

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.