Thursday, November 12, 2009

Houston car insurance FAQs

Most people don't understand Houston auto insurance and the fact that you need a PhD to read understand the policies doesn't really help but if you learn a bit about it you could end up getting better coverage and lower rates. Maybe the answers in this article will help you out.

Can I insure a modified or classic car; who will offer insurance cover?

It may take you some time to find a car insurance company that offers to insure classic or modified cars but there are insurance companies who offer this. The main reason why most auto insurance companies don't is the price tag in case you need to file a claim. The high price tag of new parts and skilled labor put many insurance companies off.

How can I cut down my car insurance premium?

There are a few things you can do to lower your Houston car insurance rates. If you have a garage use it as it will lower the risk of theft and damage, Find out if you can get a reduction if you add safety and anti theft features to your car. Also if your under 25 years old or have a bad driving record you should consider an extra driving course. You can always ask if you apply for other discounts maybe if you put all the cars on 1 policy or buy home and life insurance from the same insurer you could get a bulk discount.

What is 'excess'?

Sometimes you can choose the amount you are going to pay when you have to file a claim other times a compulsory number is set by the insurance company this is the excess. If you can afford to set the excess high you could get a reduction in premiums as a reward but make sure you can pay the bills when you have to file a claim. If you get into an accident and it's not your fault you could always try to use the legal cover to reclaim the excess payment. Most of the time you can choose the excess amount but if you are in a high risk group like young drivers you find have a compulsory excess because the risk of insuring this group is already high.

What is legal cover?

It provides expertise and assistance required to recover uninsured losses such as medical costs, loss of earnings and excess payments where the fault was not yours. It is available as an optional with most car insurance policies.

Can an insurance company cancel my auto policy?

Yes, your Houston auto insurance policy may stand cancelled if you fail to pay the premium or if your consumer's license has been suspended or revoked during the term of an auto policy. Also, if there is a fraud or serious misrepresentation when completing the insurance application, if the you are convicted to a crime, or if changes are made to the property that increase the risk of loss then the company may cancel your insurance policy.
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