Shopping around for Texas auto insurance requires a little knowledge on your part. You need know how much insurance you should be carrying, the size of your deductible and the extent of your coverage in order to have an agent find you the best deal. The internet makes it easy to let a broker get free quotes for you, without you having to do all the legwork. They will provide you with the quotes to review and compare, and let you choose the one that best fits your needs and budget. Though there are many to choose from, Clements Insurance Group, LLC, can answer all your questions to get you the best policy for your needs.

Besides having a broker shop around for an affordable insurance policy, there are some things you can do to help keep your costs down. First, and most important, be a safe driver. The cleaner your driving record, the less expensive your insurance will be. That means no texting while driving, no drinking while driving, and driving within the posted speed limits are a good start to maintaining a clean and accident free driving record.

Other ways to keep insurance costs down include:

• Anti-lock brakes
• Two or more cars on a policy
• Driver age and annual mileage driven
• Policy renewal with good claims and driving records
• Anti-theft devises
• A concurrent homeowners policy
• Driver education courses for young drivers
• Students with good grades
• A parent or family whose young driver is away at school without a car
• Airbags and automatic seat belts
• Automatic daytime running lights

Do not hesitate, insure you and your family, car, or home. Call our offices today and speak to an agent, or click on the Get A Quote today to get your free quote now.

By SCOTT NISHIMURA
Posted Sunday, Jun. 13, 2010 in Fort Worth Star Telegram.

State Farm had been Jim Higbee’s insurer for years, covering his home, two Ford Explorers and his small business that buys and resells used office cubicles out of small quarters in east Fort Worth’s RiverBend Business Park. He says he has an 800 credit score, and his only claim was a minor roof repair long ago.

Then Higbee learned in May that State Farm was raising his premiums 30 to 35 percent. A week ago, he moved his business coverage to Farmers and last week moved his home and auto policies to Nationwide Insurance.

“I pay the bills on time. I’m not beating anybody out of money. I don’t know what the problem is,” said Higbee, who estimates that he saved $600 a year on his home policy and $135 on auto by switching.

Higbee apparently isn’t alone. After State Farm, the state’s largest homeowner insurer with 29 percent of the market, raised homeowner rates last fall and again in the spring, some policyholders are just now opening their renewal notices to find two increases in one.

State Farm, in its filings with the state, raised rates an average of 8.8 percent in the fall and 4.5 percent in the spring, with the second increase taking effect May 1 for new business and June 1 for renewals. Under state law, insurers are allowed to implement increases while Texas regulators review them; the state has not issued its position on State Farm’s rate filings.

State Farm’s increases in North Texas and Tarrant County, already known for higher storm-related losses, are significantly steeper than its premium increases in some other parts of the state.

In one typical scenario in Fort Worth, the Texas Department of Insurance estimates that State Farm homeowners insurance policyholders who enjoy discounts for having multiple policies with the company could see their annual premium rise 31 percent after the two rate increases.

That assumes a 10-year-old frame home with no claims, $150,000 in building coverage with replacement cost on contents, a $1,500 deductible and an average credit score. The new premium for that property could be $1,610, up from $1,128, the insurance department estimated.

With no multiline discounts, Tarrant County homeowners could see premiums rise 39 percent, the insurance department estimates under various scenarios. Consumers can use the online calculator on the department’s website to enter data on their property, such as ZIP code, coverage value, credit score, claims history, age of home and type of construction, to get their own estimate.

Kevin Davis, a Texas spokesman for State Farm, said 9 in 10 of the insurer’s policyholders qualify for a multipolicy discount of 20 percent, which the company raised from 15 percent as part of its spring rate filing.

“At the end of the day, it is for these reasons that we encourage our policyholders to contact their State Farm agents so they can find out what their rate changes mean for them,” Davis said.

Some policyholders are beginning to shop around.

Stan Jones, the Nationwide agent in southwest Fort Worth who wrote Higbee his new home and auto policies, said his call volume from State Farm policyholders has tripled in the last month.

“People are just getting their renewals,” Jones said. “State Farm customers are traditionally loyal customers. It takes something to get them to switch.”

Dan Strack, owner of Strack Insurance Services, an independent agent in Arlington, says he took in 47 online leads on his website in May, of which six were from State Farm policyholders. In June, he has taken in seven leads, and five from State Farm customers.

Strack said he saw little effect after State Farm’s first increase last fall. But with renewals coming up and the two increases on top of each other, “it’s starting to soak in.”

Yet, Strack, who writes homeowner policies for several insurers, including Universal, Homeowners of America, The Hartford, Travelers, ASI and Safeco, says some State Farm policyholders will likely stick with their policies rather than go with a lesser-known brand, even if it means paying more. State Farm’s ability to write multiple coverages also helps, as some insurers don’t write both home and auto coverage, he said.

“Nine out of 10 times, I can beat the rate they’re getting,” Strack said. But “people are reluctant to change from State Farm and go with a company they don’t know.”

At Allstate, Texas’ No. 2 homeowner insurer with 10.8 percent of the market, spokesman Joe McCormick said, “We have not seen any uptick in State Farm business coming to us. Not in a macro sense. Some of the agencies might have seen some of it.”

No. 1 in losses

Underlying the rate increases are major questions about the desirability of the Texas homeowners market to insurers.

Hurricanes that blow in from the Gulf of Mexico, along with hail and windstorms that sweep across North Texas, contributed to $2.45 billion in catastrophe losses for Texas home insurers in 2009, according to industry estimates. That made Texas the No. 1 state for losses, with more than 20 percent of the nation’s $10.5 billion in total catastrophe losses.

Under Texas’ “file and use” system, insurers can implement rate increases pending regulators’ review. That’s supposed to be more favorable to the industry, but in practice it amounts to “file and haggle” and discourages insurers from doing business in the state, said Jerry Johns, president of the Southwest Insurance Information Service, a trade group.

“Companies have to have insurance rates sufficient to pay claims,” Johns said. “If they don’t have the funds, that is the customer’s worst nightmare.”

Patrick Brockett, the Gus S. Wortham Chair in Risk Management and Insurance at the University of Texas at Austin’s McCombs School of Business, agreed that Texas’ regulatory system has held homeowner rates “artificially low,” given the weather-related risks that insurers bear.

“The cost of catastrophic risk coverage on the coast has just been increasing,” he said. “More people are living there. The value of the structures is higher.”

And in North Texas, he said, “Hailstorm and wind damage is very significant. When the rates have been held artificially low, then increases may look abnormal, but may not be.”

Davis, the State Farm spokesman, said the firm went five years without a rate increase.

“The cost of everything that insurance pays for continued to rise,” he said. “In order to continue to keep our promises, we have to make adjustments.”

Alex Winslow, executive director of the Texas Watch advocacy group, argued that the Legislature should change state law to let the insurance commissioner review rate increases before they go into effect, bar insurers from using factors such as credit scores in assessing risk, and simplify policies.

Credit scores, now widely used by insurers, “do not accurately reflect a person’s risk,” Winslow said.

“And consumers have no way to effectively shop the Texas insurance market because it is too complex and confusing to allow true consumer choice,” said Winslow, who accused State Farm of being a “bully” with the insurance commissioner, Legislature and policyholders.

Brockett said he expects to see more insurers file for rate increases. But he doesn’t expect to see significant shifts in market share among Texas homeowner insurers, unless one of the majors pulls out of the state. It’s also plausible they could decide not to write new policies but continue to renew existing policies, he said.

“These are big companies, and they’re going to have large market share,” he said.

At Allstate, which implemented a 6 percent average homeowner rate increase last year, McCormick pointed out that his own neighborhood in Colleyville saw a substantial number of new roofs after a storm last year. Five years earlier, storms triggered another wave of reroofing, he said.

Does Allstate want more or less market share than it has now?

“That’s a good question,” McCormick said. “Across the state, we certainly want homeowners’ business, but it’s got to be at the right rate. We can’t be consistently losing money on a product.”

Policyholders who see rate increases have options, insurers and experts said.

Besides exploring discounts for owning multiple policies, Davis of State Farm said policyholders should meet with their agents to discuss changes in coverage such as raising deductibles.

The state insurance department has put up tools on its site, www.tdi.state.tx.us. Besides the calculator, consumers can also check for competing policies in their ZIP code at www.helpinsure.com. Other information includes insurers’ credit ratings and complaint data.

“We can’t tell anyone to change companies or stay with them, but we want them to be informed consumers,” said Ben Gonzalez, a spokesman for the insurance department.

For example, State Farm’s 4.5 percent and 8.8 percent spring and fall filings are accurate statewide averages, Gonzalez said.

“But you’re probably not going to see the low end of that in the metro areas or coast,” he said. “You’re going to see that in the less-risky areas.”

Johns likewise recommended shopping around.

“Consumers have choices when it comes to homeowner or auto insurance,” he said. “I think people are going to be shocked at the variety of pricing in the marketplace in Texas.”

Posted via web from planoautoinsurance’s posterous

Posted via web from planoautoinsurance’s posterous

• defensive driving courses
• driver education courses for young drivers
• students with good grades
• a parent or family whose young driver is away at school without a car
• airbags and automatic seat belts
• automatic daytime running lights
• anti-lock brakes
• two or more cars on a policy
• driver age and annual mileage driven
• policy renewal with good claims and driving records
• anti-theft devises
• a concurrent homeowners policy

Here at the Clements Insurance Group, we look for every opportunity to save you money because we know nothing in life stays the same, and we want to make sure your insurance needs stay in step with your life. Call or request a quote today!

Posted via web from planoautoinsurance’s posterous

The purchase of Texas auto insurance is the fulfillment of this legal requirement. The auto liability minimums in Texas are 20/40/15 which is $20,000 for each person you injure to a grand total of $40,000 for all claims and $15,000 at the most for damaged caused to the other person’s property. These make up the minimum requirements, and the recommendation is that you get higher liability insurance levels. Included with the required liability coverage, Texas drivers have the option of buying coverage for “first party benefits” which include compensation for medical bills, loss of income, and loss of services. These benefits are granted to all accidents with no regards to fault. Your expenses will be covered by uninsured and underinsured motorist policies as well, but they are only effective if you have been hit by a driver with inadequate liability insurance. These are not mandatory policies, but they are inexpensive in comparison to other policies and can give you a lot of protection.

Texas auto insurance will also give you the option of collision policies and comprehensive coverage. Note that mandatory requirements are not high enough for the average expense of severe injuries and loss of finances from a car accident. It is recommended by all insurance agents that you look into buying significantly greater levels of liability insurance. Car insurance companies will also give you the option of medical payment, collision, comprehensive, and uninsured and underinsured driver’s physical injury coverage. The method of setting your insurance in Texas is different from the methods of many other states. Behavior and accident rates determine the rates of all drivers in Texas. The expenses of insuring drivers in Texas which include settlements and legal fees is added up for the whole state and divided among all drivers. The expenses are definitely not distributed evenly. They charge the percentage based on driving record, age, location of residence and your car. Not all insurance companies add up their data the same way, so a driver with the same profile will get varying rates as it depends on the company from which the insurance is purchased. This is the reason that getting several quotes is a very important stage to go through before settling on an insurance policy. Remember, the importance of liability exceeds that of any other element in your whole insurance policy. Be sure to buy adequate liability insurance for protection of your assets. It only takes a split second for an accident to happen. Your life can be financially ruined if you are not covered adequately. Other coverage to look into is collision, comprehensive, rental, towing and road side assistance. You will be the one to figure out your personal needs. When you are making comparisons, you should compare equal policies, and the deductibles should be the same. The fine print should read alike, and the liability should be for the same amount. The comparison of policies of equal quality is of great importance in making sure the most inexpensive quote is in fact the most inexpensive quote. In less than 10 minutes, you can have every quote that you need to make a great choice in buying inexpensive Texas auto insurance. Don’t hesitate! Get right on it and call today!

In the US, auto insurance rates differ in each state. This is because auto insurance rates are based on the population of the state and also on its economic condition. You can easily compare the auto insurance you pay with what car owners in other states pay by looking up www.iii.org, the website of insurance Information Institute, to get the necessary information. The National Association of Insurance Commissioners (NAIC) estimates the average expenditure on auto insurance of each state. This is based on the assumption that all insured vehicles will carry liability insurance but not necessarily comprehensive or collision insurance. According to NAIC only 77% of car owners hold comprehensive insurance in addition to liability insurance, and only 72% hold collision insurance. Naturally, the cost of auto insurance depends on the type of coverage car owners want to have.

Other factors also influence the cost of auto insurance. People who live in a state where the economy is booming will tend to buy new cars more frequently than those who live in states where the economy is struggling. Insurance coverage for new cars will be higher than that for older cars because the owners opt for more expensive insurance packages. This is one reason why states which have a healthy economy have a higher auto insurance expenditure per year than other states whose economy is not as robust. Traffic density, income of car owners and cost of living also influence the rate of auto insurance in each state. Texas auto insurance was listed in the 17th place in the 2005 state-wise report of NAIC on average auto insurance expenditures. In that year, car owners in Texas paid an average of $845 on auto insurance. In Texas, the Clement Insurance Group LLC treats is customers like family, and can help find you the most affordable Texas auto insurance. You will find that this company offers excellent low cost auto insurance options. The Clement Insurance Group LLC will provide insurance quotes to cover all your auto insurance needs, including affordable auto insurance for commercial vehicles. It is accessible online 24×7 and has experts on its staff at its customers’ service division. They can give you expert advice on what would be your best auto insurance option.

Do not hesitate call or click today!

Texas Auto Insurance Definitions

• Actual Cash Value (ACV)

  The value of your property, based on the current cost to replace it minus depreciation.

• Bodily Injury (BI)

  Physical injury to a person.

• Deductible

  The amount the insured must pay in a loss before any payment is due from the company.

• Depreciation

  When an item´s value is lowered because of use or wear and tear.

• Endorsement

  When attached to a policy, this written agreement expands or limits benefits otherwise payable under the policy. Also known as a “rider.”

• Gap Insurance

  This pays the difference or “gap” between the actual cash value of a vehicle and any unpaid amount on the loan. Some gap policies may also cover the deductible.

• Liability Insurance

  When you cause an accident, this pays for injuries to the other party and damages to the other vehicle. Also pays for accidents caused by someone covered by your policy, including someone driving your car with your permission.

• Liability Limits

  The maximum amount your liability policy will pay. Higher liability limits can be purchased for an additional premium.

• Property Damage (PD)

  Physical damage to property.