This car insurance agent called up my home number offering some pretty unbelievably cheap car insurance rates. I expressed interest, but I suspect it’s a scam. What do I do? He said I might be able to get coverage for $39 a month?

Jackson

Houston, TX

Indeed, the agent from that particular company offering $39 car insurance rates is, indeed, suspicious. But don’t call the police just yet. Here are some ways to protect yourself and verify if the agent is legit or not:

• Don’t give information – don’t give out bank accounts or credit card numbers over the phone or on the internet, whether you think the agent’s suspicious or not, not until everything checks out with the agent.

• Check with the Texas Department of Insurance – if a company’s licensed with the TDI, it’s a safe bet that they’re legit. Do not ever, ever sign up with an insurance company that’s not licensed in the TDI. Also, be very careful when it comes to the exact name of a company: “Insurance Company X, Inc.” is a different corporate entity than “Insurance Company X.”

• Check with the insurance company – even if the company is licensed with the TDI, the ‘agent’ that’s calling you may be bogus. Get the full name of the agent, get the contact details of the company from the TDI and give them a call or send them an e-mail.

True, it’s not good to pass up on a good deal, but it’s even worse to fall prey to fraudulent insurance or scams. These three steps by themselves won’t do much apparent good, but they’re the baby steps for you to protect yourself from harm. Use them well.

With that said, you MIGHT be able to get $39 a month coverage, but it will be basic liability and I would bet you have to have perfect credit and no claims history on your record. Then again, just because it’s cheap doesn’t mean you will get the protection you really need, and the real reason why you want insurance in the first place.

I recently got a speeding ticket in Chicago but I live in Houston Texas. Will this affect my car insurance rate in Texas?

Frank

Houston Texas

Texas and Illinois are both members of the Drivers License Compact, that means your speeding violation in Chicago will be reported back to your home state in Texas.

The Texas Department of Public Safety states that they will place out of state violations on your Texas driving record.

According to the Texas Department of Insurance, car insurance rates offered in TX needs to be reasonable, adequate, not excessive to the risks for which they apply, and not unfairly discriminatory. Texas car insurance carriers set their own rating system and then file them with TDI to check.

The speeding violation you received in Chicago will be put on your Texas driving record thus your insurance carrier will see it the next time they check your Motor Vehicle Record. If you want to know if the speeding ticket will affect your Texas Car insurance rates you can speak with your car insurance agent about their rating system.

I’ve been shopping for car insurance in Houston and I can’t help but notice that most car insurance policies here are more expensive than anywhere in Texas. Is that safe to assume?

Tracy

Houston, TX

For the most part, car insurance in Houston is more expensive anywhere in Texas. The number of car accidents has risen in this part of Texas for the past several years, and this has led to many car insurers to jack up their prices to cover the rise of insured car accidents, fraud and theft.

But the good news is that you can still get cheap car insurance in Houston despite the increase in the rates of car insurance policies. The key is to shop as hard as you can. You might not be spending enough time asking around and shopping for the best insurance policy because many discounts are available to you if you know what to ask for.

Some popular discounts for auto insurance are:

1. Good grade students

2. Good credit score and credit history – many carriers will run a credit check on you

3. No claims history – had not made a claim in the last 7 years

4. Credit union affiliations – even fraternal or club organizations offer some discounts – Rotary International for example

5. Combine other lines of coverage together like home and auto

6. Military discounts – both active, reserve and retired

7. Government employees – Geico Stands for Government Employee Insurance Company

8. Multi vehicle discounts

9. Buying online – Progressive for example gives a discount if you buy online rather than from an agent

10. Raising your deductible – although not a “discount” the higher the deductible amount the lower your rates will be

When applying for car insurance, make sure that your vehicle is secured. Install security devices in it such as alarm system, brake system, and immobilizers. You will maximize the chances of your car being rated as low risk, and consequently earning you a lower car insurance.

How much does your auto insurance rate rise in Houston if you are at fault in an accident and the other driver claims injuries?

Sam

Houston, TX

There is no specific amount your auto insurance rates in Houston may increase but generally you might expect a 10% to 15% increase in your auto insurance premiums. Insurance providers are required to file their rates and rules with state regulatory bodies such as the Department of Insurance. In most situations, they impose a surcharge or charge ‘points’ to motorists who have been charged with an accident and/or who have made an insurance claim against their car insurance policy. So, there is no standard law that dictates that an insurance carrier can increase your car insurance rate premiums due to an accident. It’s just a matter of how the car insurance rates are filed and passed on to you as a result of an accident.