What is Low Mileage Discount with Respect to my Auto Insurance Policy in El Paso, Texas?

Finding the right auto insurance policy often requires the use of discounts. The discounts that are available through any insurance provider will vary, but some providers will offer a low mileage discount to help El Paso, Texas residents save on car coverage.

Basics of Coverage

The basic coverage for a vehicle is the same, but the price after a discount is applied will vary. Qualifying for a low mileage discount will often require a specific limitation on the number of miles added to a vehicle each year.

Reason for Discount

The primary reason for the discount is that the driver has a much lower risk of an accident. When a vehicle is on the road for a very short amount of time, the level of risk dramatically decreases. Depending on the amount of driving and the limitation set by the provider, the discount might vary slightly between individuals.

Obtaining the Discount

Applying the discount to an account will depend on the situation and the insurance provider. In many cases, the company will need clear records of the past year to verify the amount of driving.

After providing proof and determining that the number of miles on the vehicle qualifies, the discount is applied to the account. The savings will vary based on the situation, the company and the details of personal coverage. In most cases, the savings are significant enough to consider applying for the reduced monthly payment.

Saving money on car coverage is not as hard as it might seem. Companies are willing to offer a wide range of discounts to consumers, but finding the best policy will depend on the situation. To learn more about discounts that might apply to your situation, contact us to talk to an independent agent.

What is a TIR(Total Incident Rate) in El Paso, Texas, and how does it affect my homeowners policy?

Filing a claim on your El Paso, Texas homeowner’s insurance policy will usually not cause your home insurance to go up if it is due to damage from a tornado, fire or other peril. If you have been with the same insurance company for ten years and never filed a claim, you are considered a good risk. Should a pipe burst and your room flood, you can file a claim to clean up the water damage and not fear a big rise in your home policy rates.

Insurance companies rely on various statistics to determine when it is appropriate to raise a customer’s homeowner policy rates. They use a ratio called a Total Incident Rate (TIR) to see how often you file claims. If your TRI is high, you will pay a higher premium. If it is really high, you may have your El Paso home insurance canceled or not renewed when your policy expires.

The total incident rate is a calculation based on the number of incidents you report to your insurance company and the time period over which you report those incidents. For example if you report one claim for some damage to your roof in a five year period, your carrier will not be particularly concerned that they have to pay to have your roof repaired. If you report three small claims over a 15 year period, that will not cause much of a rise in your rates. It suggests to the insurance company that you have a history of filing a claim about every five years.

On the other hand if you file five separate claims in five years, you could expect a substantial increase in your premiums. Depending on the type of claims, your insurer might refuse to sell you another policy once you current policy expires.

The total incident rate is a tool used by insurance companies but it is not the only factor that determines the premium you will pay when it is time to renew your policy. You can find out more about when an insurance company can raise your premiums and how you can avoid that unpleasant prospect by giving us a call and speaking to an independent agent.

Are used car insurance costs higher? How much is average used car insurance cost in New Mexico?

It seems as though car insurance rates are always on the rise which makes people wonder how they can save the most money on their auto insurance in Albuquerque, Rio Rancho and Las Cruces, New Mexico. If you are in the market for a new-to-you car, a used car might be just what you need to get the low insurance rates that you’re looking for.

In general, insurance rates on used cars are lower than those of new just-off-the-lot cars. The main exceptions are classic cars which retain their value better than ordinary cars. In 2012, the average car insurance costs in New Mexico were $1274. The state ranked 35th among all the states in the nation.

When you have a used car, you have more options in terms of which kinds of coverage you need, and how much of it you need. If the car is paid for in full, you don’t have to worry about having to have a policy large enough to cover the loan amount. Since a used car is usually several thousand dollars cheaper than a new one, you will save money by insuring a car that costs less.

You can save even more on your insurance for your used car by buying a car that is a make and model that is reliable and safe on the road. Since more reliable cars are responsible for fewer claims, they can be insured for less. Also cars that are less likely to be stolen or vandalized are cheaper to insure. Choose a black or blue car over a flashy red or yellow one to save money.

The best way to find the cheapest rates on car insurance premiums is to compare rates from multiple
insurance companies. As your local independent agent in New Mexico, we will be glad to work with you to help you look over all of the policies and find the one that meets the needs of your situation.

What is Inflation guard with respect to my home policy in El Paso, Texas?

When you buy a home policy in El Paso, Texas, you want to be sure that you buy an adequate amount of coverage so you will be fully covered should you suffer a loss. A standard home policy will cover at least 80 percent of the cost to replace your home that is damaged or destroyed due to a covered peril.

If your home was built 10 years ago at a cost of $100,000, it may cost you $150,000 to build that same house today. Inflation causes the price of construction materials and construction labor to rise, and if you do not periodically update your insurance coverage, you could be under-insured when a calamity strikes and your home is seriously damaged.

In order to protect yourself, you can buy what is called an inflation guard that will automatically increase your home replacement cost coverage to keep up with inflation during the term of the home policy. You buy this coverage as a separate endorsement to your standard home policy. The insurance company closely follows the construction industry indexes that show the increase in prices for lumber, building materials and labor on a periodic basis.

If you purchased an inflation guard endorsement in January, and construction costs rise by four percent midway through the year, your coverage will automatically increase by four percent. This is a slightly different kind of coverage than replacement cost home insurance, which completely covers the cost to replace components and contents of your home at their present value.

Inflation guard will not pay for a brand new mattress if your ten year old mattress is damaged due to a water leak. For that, you need replacement value coverage as opposed to actual value coverage. The entire subject of inflation guard endorsements can get a little confusing. If you want to know if this coverage is something you should have, give us a call and an independent agent will be happy to provide you with some good and free advice.

Can I have auto insurance under a different name than the registration?

In Las Cruces, New Mexico you may find people wondering whether or not they can insure a car without having their name on the registration. Maybe it is your parents car and they have allowed you to drive it while at college. It seems only logical that you should be able to buy a local policy on it while in school. The problem comes down to what is called insurable interest.

What is Insurable Interest?

Insurable interest is what auto insurance companies look at before ever deciding to write a policy for a customer. The owner of the car must be able to prove that it is actually their car. In order to prove that the car is actually under their ownership they must provide proof. The proof comes by having your name on the title or registration of the car.

When a person buys a car with a loan they will soon find that the name of the finance company appears on the title as an interest of the car. They have a financial interest, meaning that they want to make sure they can get their money if the car is ever sold. The buyer’s name will appear as well since they are the party who is driving the car. As the owner they are the only party that can insure the car without having to worry about insurance fraud.

If you live in Albuquerque or Rio Rancho, New Mexico, then you may need to know if you can insure a car. Call us today as your independent agent and we can help you determine if your car is really insurable under your name or not. Or, should you have a general question about insurance we can answer that too.

If my mortgage company doesn’t require it, then do I really need flood insurance in El Paso, Texas?

Known for its hot, dry weather, Texas doesn’t necessarily come to mind when we think of floods. However, El Paso homeowners would be wise to add this inexpensive form of coverage to their policy. You don’t have to live near the coast or on a flood plain to benefit from flood coverage. Even if your mortgage company doesn’t require flood insurance, it is a vital form of protection that you don’t want to be left without.

Why You Need Flood Insurance

While fires and droughts may come in mind when you think of Texas weather, you might not expect to face a flood while you are living in El Paso. It’s true that Texas is generally a low-risk state when it comes to flooding. However, recent fluctuations in the weather make flooding a potential risk in every community.

Adding to your risk, the Rio Grande River flows right through El Paso. All it would take is above average rainfall for the Rio Grande River to overflow, which would directly threaten your home.

What Flood Insurance Covers

Flood insurance covers structural damages to your property. It also covers damages to major systems and appliances in your home, such as your electrical systems, plumbing systems, air conditioning units, and kitchen appliances. Flood insurance can also cover the personal belongings inside of your home, such as your furniture and entertainment systems. A policy that does not include flood insurance will not honor your claim, leaving you on your own to cover the loss incurred during a flood.

How an Independent Agent Can Help

On average, it costs between $150 and $500 annually to add flood insurance to your policy. An independent agent can help you obtain the lowest rate on flood insurance while maintaining the maximum amount of protection for your home. Contact us today to keep your home protected against an unexpected flood.

Do I need to have comprehensive coverage on my auto insurance policy in New Mexico?

Car insurance is one thing that every driver should have in place before they ever should start driving. Every state has made it a requirement for each driver to be insured or they will have to face some kind of legal penalty. Of course the level of insurance that you should carry depends on what your circumstances are and what the state sets as the required level. Here are some things to consider in Rio Rancho, Albuquerque and Las Cruces, New Mexico to help you decide on whether you need comprehensive coverage or not.

Do I Need Comprehensive Auto Insurance

  • If you own a car with a loan on it, you will need to carry comprehensive coverage. A loan means that you are making payments on the car. Until the loan is paid off the car really belongs to the bank. So they will want to protect their investment in case it is ever damaged in an accident.
  • Think about what it will take to fix the car if it is ever damaged. Then consider if you have enough money to pay for all the repairs. If you do not, then you may want to have comprehensive coverage.
  • Consider the neighborhood you live in. If your car is one that thieves like to steal, then you may end up buying a new car if you do not have a comprehensive policy.

Car insurance is made to help you with repairs should you ever have to fix your car because of an accident. If you have any questions about your insurance policy, then you need to contact one of our independent agents today. We can answer all of your questions and help you find the right coverage for your car.