Texas Auto Insurance

“I live in Texas, how should I organize my auto policy?”

    I’m glad you ask.  Anyone who has moved to Texas from out of state and bought car insurance has probably uttered the phrase “Wow that’s expensive!!”.  Texas has always been one of the top 5 worst states for auto insurance premiums.  That being said, the question of how to keep you premiums down is a tough one here in the lone star state.  In this article we will explore some strategies and ideas for keeping your rates down.

• Keep your record clean- This one should be obvious.  Driving the speed limit and protecting yourself against moving violations will keep your rates down.  Not many people know that a speeding ticket will stay on your insurance record and possibly effect your rates for up to 5 years!!  Simply put, keep your foot out of the carburetor and you will spend less money in the long run.
• Keep your credit clean- This is one of the most controversial rating factors in the state of Texas and has been the subject of much debate.  Without spending too much time on why…this paragraph would be better spent simply stating…its here to stay.  Here is a good way to look at it, consider those bills you just “let go” back in college that have turned into black marks on your credit report.  For the next many years that will affect interest rates that you get on mortgages, cars, credit cards, other loans and yes insurance rates.  So, that plasma TV that you never really paid for could end up costing thousands and thousands of dollars over the next many years.  Get the idea?
• Claims- Most insurance agents are obligated to direct any and all claim inquiries to their claims department, this is done primarily for liability issues.  I said that to say this…know your policy.  This can be accomplished by doing one simple thing…reading it.  Not to sound to sarcastic but there are a great many people out there that have spent thousands of dollars in insurance premiums over there lifetime and haven’t the slightest idea what they have been paying for.  Why know your policy?  Well, when your prize Basset Hound eats a box of bon-bons you left on the floor and then redecorates your $10,000 dollar oriental rug with various gastrointestinal unpleasantries…don’t call your insurance agent…its not covered.  Because in most cases he will turn a claim in and let the claims office call you with the bad news.  You then have a 0 pay or CWP claim on your record.  These are not surchargable but it can effect your ability to get insurance with a different company.  Know what’s covered and what’s not, and if its not, don’t call your agent.
• Liability- This is one of the most important aspects of your policy, I would always recommend keeping these limits as high as possible.
• Deductibles- This is were the word strategy comes into play.  Pay now or pay later.  If you keep your deductibles low, your premiums will be higher, but it will pay in the event of smaller claims.  The more claims you make, the higher your premiums will be.  Are you with me so far?  Keep your deductibles high, then you self insure up to the deductible.  For example, if the comprehensive deductible on your Texas auto policy is at 1000 and while driving down the road a rock breaks your windshield.  The windshield costs $350.00 to replace, you will end up paying for the windshield.  The good part about this scenario is that is one less claim for you so your rates will stay lower in the long run.  Now, I’m sure my high school English teacher would have destroyed the first part of this paragraph but, you get the idea.  It really comes down to what fits your budget best.  Smaller monthly premiums and more out of pocket potential or higher monthly premiums and less out of pocket potential.

Once again home and auto insurance in Texas can be treacherous.  So give some of these ideas a try and I’ll bet it saves you money.

Best Regards,

David Beane

CEO North Texas Life Insurance Company

For a quote or review of your policies visit us on the web at http://www.northtexaslife.com

News Release 02/07/2005

What should I do with my old whole life insurance policy?

I recently had a man stop by my office that had a whole life insurance policy that he had forgotten he owned.  He had the policy for over twenty years and it had accumulated a considerable amount of cash value.  Considering the other policies he had in force, the death benefit in this policy was really obsolete.  So he ask me “what should I do with it?”

After some discussion we decided it would be beneficial to use what is called a 1035 exchange.  A 1035 exchange is a means by which a person can move funds from one life insurance policy or annuity contract to another without creating a taxable situation.  So how can this benefit me?

If you have an old whole life policy that has accumulated some value over the years.  Moving this money into a universal life insurance contract can have several benefits:

·         Cheaper life insurance- When you transfer a large amount of money via 1035 exchange into a new life insurance policy you put yourself “way ahead of the game”, so to speak.  By doing so this makes your monthly cost of insurance considerably cheaper.  What most people then do is consolidate all their policies into one and you end up with an affordable policy that will last for years.

·         More Cash Value- In many cases transferring money into a new policy can cause the cash value of a policy to increase much faster than if you let it sit in the old policy.  However this will vary from case to case but, it is definitely worth a look.

Now that you have some good ideas on what to do with that old whole life insurance policy the next step is…call your agent.  Let him review your old policy and see if a 1035 exchange would be right for you.  Also, for an honest quote and review of your policy contact us we would love to earn your business.  Thanks for reading and be sure to check us out next week for an article on “How to pay your house off 10 years sooner and save thousands of dollars in interest”.

Best Regards,

David Beane

CEO North Texas Life Insurance Company

E-mail DavidBeane@northtexaslife.com

For a quote or review of your life insurance visit us on the web at:

http://www.northtexaslife.com