Because many auto insurance providers determine your rates largely based upon where you live, you need to communicate your change of address when you move house. Neglecting to do so can invalidate your policy. If you move and are involved in a car accident during which you're injured or your vehicle sustains damage, you may be surprised to discover that your car insurance policy no longer offers coverage.
#2 - Rate Adjustment By Zip Code
One of the reasons why your car insurance premiums are affected by your location is that carriers often assign risk to specific zip codes. For example, if there is an inordinate concentration of drivers in a certain zip code, your rates may increase. Or, if you're moving to a zip code that has a high crime rate (auto theft, vandalism, etc.), your rates may also increase. Of course, that means that moving to a zip code with fewer drivers and a lower crime rate should result in lower premiums.
#3 - Reduce Your Rates Through Less Driving
Sometimes, moving house means you'll be driving less. Living closer to your job, your child's school, or other destinations you'll visit often (for example, a grocery store) can lower your car insurance rates. Insurance Companies understand that the fewer miles someone drives each year, the less likely it is that they'll be involved in an accident. And that results in fewer claims.
#4 - Garage Vs. Driveway Vs. Street
Auto insurance companies receive claims for auto theft and vandalism every day. It's costly for them to payout on these claims. Because a motor vehicle is more likely to be stolen or vandalized if it is parked on the street, insurance providers tend to consider garaged vehicles (and even driveway parking) more favorably. If you're moving house and your new location provides garage parking, your car insurance company may be able to offer you a discount.
#5 - Will Your Marital Status Or Financial Status Change?
Sometimes, moving house is associated with a change in financial or marital status. Both can affect your premiums. Because automobile insurance carriers take into consideration your overall financial health and credit score when determining your premiums, an increase in your overall financial health could mean lower rates going forward. Similarly, carriers consider married people to be less likely to get into an auto accident. If you're moving house due to getting married, let your auto insurance company know. You may be rewarded with a further discount on your premiums.
When It's Time To Move
Moving house can be a stressful and frustrating event. There are hundreds of decisions to make and usually a limited time frame during which to make them. That being said, it's important that you take the time to update your car insurance policy with the details of your new location. That includes updating your address and the number of miles you'll be driving each year. Note adjustments in your parking arrangements as well as changes in your financial or marital status. Each of these factors can affect the premiums you'll pay. And not communicating these factors can invalidate your coverage.
Medical Payments Coverage
This type of insurance pays medical and funeral bills arising from accidents, including those in which the victim was a pedestrian or a bicyclist. It covers you, your family members and all passengers in your car regardless of who caused the accident. Because many drivers still do not have insurance, it is a good idea to add this coverage to your auto insurance. Texas law requires all drivers to carry insurance, but it is not something you want to count on if you or someone you love gets hurt.
Personal Injury Protection (PIP) Coverage
This type of insurance is the same as medical payments, but offers the additional coverage of 80% of lost income and the cost of hiring a caregiver for an injured person. It is a valuable addition to your auto insurance. Texas law, in fact, requires insurance companies to offer $2,500 in PIP to you, and that you reject it in writing if you choose not to add it to your policy.
Uninsured/Underinsured Motorist (UM/UIM) Coverage
This type of coverage explictly covers expenses from an accident caused by an uninsured driver, or if the driver did not have enough insurance to cover your bills. This type of coverage also pays for damages arising from a hit and run accident if you promptly report it to the police. Auto insurance in Texas is mandatory, but this type of coverage is a good idea to protect yourself against those who do not follow the law.
There are two types of UM/UIM coverage: bodily injury and property damage. Bodily injury coverage pays for medical bills, lost wages, pain and suffering, disfigurement, and permanent or partial disability. Property damage coverage pays for auto repairs, rental car fees, as well as damage to items in your car. Insurance companies must offer UM/UIM in addition to your auto insurance. Texas law requires that you reject, in writing, if you choose to waive this protection.
Collision (Damage to Your Car) Coverage
This type of coverage pays the cost of repairing or replacing your car after an accident, regardless of who was driving or who was at fault. Payment is limited to your auto's actual cash value, minus your deductible. Actual cash value is the market value of a car like yours before it was damaged.
Comprehensive (Physical Damage Other than Collision) Coverage
This type of coverage pays the cost of replacing or repairing your car if it is stolen or damaged by fire, vandalism, hail, or another cause other than collision. Comprehensive coverage also pays for a rental car or other temporary transportation if your car is stolen. Your policy won't pay for an auto theft unless you report it to the police. Payment is limited to your car's actual cash value, minus your deductible.
Towing and Labor Coverage
This pays the towing charges when your car cannot be driven, as well as labor charges, such as the cost of changing a tire, at the place where your car broke down.
Rental Reimbursement Coverage
This type of coverage pays a set daily amount for a rental car if your car is stolen or is being repaired because of damage covered by your policy.
Clearly auto insurance in Texas can be much more extensive than a simple liability policy, and provide much greater protection and peace of mind.
Both Kade Phillips & George M. White are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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