Do You Need Non-Owner Car Insurance In Houston Texas?
Reader’s Question:
I always borrow my neighbors’ car here in Houston, TX. Now, my neighbor told me that it is alright as long as I get myself an auto insurance. Is my neighbor joking about this or is it true that I can get an auto insurance even though I don’t own the car. If there is an insurance policy like that what are the advantages.
Harry
Houston TX
Yes there is an insurance policy like that. And it will make your neighbor more comfortable lending you his car if you own this type of insurance. It is called the non-owner auto insurance. This type of auto insurance policy will cover damage expense done on the vehicle that you don’t own if you are the one behind the wheel and you accidentally collide on something. But let me make this clear to you. Although if you accidentally damage the vehicle of your neighbor, your neighbors auto insurance policy will take effect. Your non-auto insurance policy will only take its role if your neighbors’ auto insurance policy cannot cover the damage that is done on the vehicle. For example, if the estimated cost of the damage is $20,000 and your neighbor or the owner of the car has a liability limit of $30,000, your non-owners’ policy will not be touched. But if your neighbors’ liability limit is only $10,000 then your policy will take care of the remaining deficit.
Another advantage is if you rent a vehicle. Most rental companies also sell car insurance policies that cover throughout the renting period. This may not cost much, but if you are renting too often, it will surely save you money if you have a non-owner auto insurance policy. Notice if you rent a vehicle too often and always pay additional cost for car insurance, try to sum up the additional auto insurance cost and try to compare if you can save if you had a non-owner auto insurance policy.
Factors Affecting Auto Insurance Premiums Texas TX
Reader’s Question:
I will be getting my first auto insurance, and I don’t know how much it would cost me. Can you tell me how automotive insurance companies in Texas compute for premiums?
Dennis
Houston, TX
Since it’s your first time to get auto insurance in Texas, you should know that each auto insurance company has its own set of criteria for evaluating risks and computing for premiums. However, there are basic risk factors that they all take into consideration during the evaluation.
These basic factors are:
Driving history. A person’s driving history is one of the bases for auto insurance companies to identify how the person will drive in the future. Auto insurance companies assume that a person who has committed a violation once will commit the same violation again in the future. The same thing is expected of those who have been involved in car accidents.
Age. Studies show that young drivers will most probably be in a car accident because of their lack of sufficient experience in driving. Because of this, most auto insurance companies give higher premium rates to these drivers. However, when they reach the age of twenty-five, companies expect that have had enough experience and learning in driving, therefore causing their premium rates to drop.
Gender. Statistically, younger male drivers get involved in vehicular accidents more frequently than female drivers. This is why they are charged with higher rates. However, they are charged with lower rates when they turn thirty years old because they become less of an accident risk.
Marital / Social status. Married drivers or those with children are considered to be low-risk drivers because they are expected to drive more safely than the singles.
Credit history. Some auto insurance companies consider the credit record in determining a driver’s accident risk. Statistics show that drivers who have poor credit records have a higher frequency of engaging in traffic violations and road accidents, hence they make more insurance claims. Therefore, these drivers are rated as high-risk drivers, and they get higher rates than those who maintain good credit records.
You will know the exact details that make up the computation of your premium if you ask your auto insurance agent about it. But try looking around first before you sign any contract. Try checking the internet for online quotes and cheaper rates, or talk to a couple of agents, so that you could find the best deal that would suit your budget and your specific needs.
Tags: auto insurance claims, auto insurance online, auto insurance premium, car insurance rate, high risk insurance
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