Archive for May, 2010

Travel Insurance Can Be a Rip-Off

Tuesday, May 18th, 2010

Americans spend more than $1 billion on travel insurance (paid to agents) to guard against cancelled flights and stolen bags. Thing is, other policies often cover the same stuff. Some homeowners’ policies and credit cards cover lost luggage; airlines reimburse travelers for up to $3,000 worth of goods. “It’s not a good economic decision for most people,” says Robert Hunter, director of insurance at the Consumer Federation of America.

How to Avoid It: If you just can’t sleep without insurance, “don’t buy from someone who’s selling you something else,” say Hunter. “It’s almost always a bad deal involving kickbacks to whoever’s offering the service.”

–Austin Insurance Group and IMG Travel Medical Insurance and more

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How to Register Your Car in Texas!

Saturday, May 15th, 2010

To register your car in Texas, you must go to your county tax office. The same is true for those who have allowed their current Texas registration to expire.

New residents have 30 days after moving to TX to register their out-of-state vehicle. Within that time, you must also get a vehicle inspection, title your car in Texas and get a Texas driver’s license.

You are exempt from titling and registering your car as a non-resident only if are an active-duty member of the U.S. Armed Forces or a full-time student from another state going to school at a Texas college or university.

What must be done to register your car in Texas?

1.  Get Insurance – To register your car in Texas you must show proof of insurance. More importantly, to operate your vehicle on Texas roads you must have insurance. There is no grace period and no exceptions. To shop for auto insurance quotes online, visit our Online Quote Center.

 2.  Prepare the Paperwork – If you have purchased a new or used car from a dealer, it’s likely your paperwork has been taken care of for you.  Otherwise, conduct a title transfer and register the vehicle at your county tax office within 20 days of changing ownership.

How to Register an out-of-state vehicle?

a. Obtain the inspection certification proving the vehicle has been inspected. Some vehicles only require a safety inspection while others must also get an emissions test. All vehicles registered in the state must be inspected, including those that are from another state. For more info on state inspections, consult the AirCheckTexas of the Texas Department of Motor Vehicles (TxDMV). Proof of insurance is required to get an inspection.  

 b. If the car is less than 10 years old, be prepared to provide the vehicle’s odometer reading.

 c. Obtain either the original out-of-state title or the current foreign/military ownership document if you are simultaneously titling the car in your name at this time.

d. Complete the title/registration (Form 130-U), making sure all registered owners sign the application.

3.  Calculate the Fees – Before you go to the county tax office with your paperwork, it’s best to figure out what you’re going to pay in terms of fees. The state offers a comprehensive document called the Schedule of Texas Registration Fees that lists fees by county. Figure out your fee according to the county in which you live and then add to that the title application fee (usually $28-$33 depending on where you live) and the new resident tax (usually $90 if applicable).  In certain situations you’ll face additional fees, so it’s a good idea to contact your county tax office to avoid any surprises.

4.  Go to the County Tax Office – If you are a new resident, you’ll need to obtain a Texas driver’s license in addition to registering and titling your car in the state. Licensing takes place through the Department of Public Safety (DPS).  If you already have a state driver’s license, your next step is to locate the nearest county tax office.

 5.  Transferring License Plates – If you buy a used car, the license plates stay with the vehicle. At this time you might also consider ordering specialized or vanity plates. These range from those for drivers with disabilities to those who want to display they are driving an antique vehicle.

6.  Affix Your Stickers – The county tax office will give you stickers for the license plates if the car was not already currently registered in Texas. There will be a sticker for the year and the month along with instructions on how to place them properly on the rear plate. 

7.  Get a Tax Deduction – Texas does not calculate your car registration fee based on your vehicle’s value. Therefore, you can’t take the deduction allowed in other states. For any tax questions, consult a tax professional. 

 8.  Safely Get on Your Way – You’ve already dedicated plenty of time to getting your vehicle current in the state of Texas, so why not make it and the roads you travel on safer while you are at it?  For example, having a roadside assistance program is a great way to ensure you’ll have help if an unplanned situation arises. These programs come to the rescue if you break down or blow a tire. Also having an after-market auto warranty might make it easier to keep your car running at its best. Pair that with a mechanic you can trust and you’ll be as well prepared for “surprises” as you can be.  There are also ways to enhance road safety that are affordable no matter what your budget. For example, hands-free headsets for your cell phone, child safety seats and car emergency kits are easy to get your hands on and don’t cost a whole lot of money.

 For more information on registering your vehicle in Texas visit our site at http://www.aigtexas.com/insurance/register.html

–Austin Insurance Group

Posted in Auto Insurance | 1 Comment »

Shopping for a New Home? What You Should Know About the Insurance Implications of Buying a Specific House!

Thursday, May 13th, 2010

 Whether you are a first time home buyer, considering the purchase of a second home or looking for a cozy smaller property, it’s important to consider the insurance costs of the home you are considering.  This will affect the overall price of owning the home.

     When people look at homes, an often overlooked item is the insurance implications of a specific house.  Most people will look at factors such as property taxes, neighborhoods, school districts and available recreational ammenities, but they should also focus on what the cost will be to insure their new home.  You don’t want to find out that your dream home is more expensive to insure than you thought after you own it.

     When looking at prospective new homes, ask the following questions:

1. What is the age of the home? Most insurance companies offer new home discounts for home that are newly built or less than 10 years old.

2. How old is the roof? If the roof is older than 15 years old, or in poor condition, you may have a difficult time finding an insurance company that will insure your home, and if they do provide coverage, they may exclude the roof.  Replacing a roof is one of the most expensive updates you will do. 

3. How far is the home from the fire department or a fire hydrant? Houses that are near a fire station with professional firefighters usually cost less to insure, as well as, homes that have fire hydrants within 1000 feet.

4. What is the condition of the plumbing and electrical systems? Poorly maintained, unsafe and/or outdated systems can cost more to insure.   If the home your are considering is over 30 years old, ask if it plumbing, electricial and  ac/heating have been replaced, and get documentation.

5. Is the home vulnerable to wind damage? Find out if private insurance is available, or a state-run insurance program. Is there a windstorm deductible, and how high is it? A home on or near the beach will be more costly to insure than one inland.

6. Is the house at risk from flooding? Flood insurance is not covered under a standard homeowners insurance policy. However, it is available from the National Flood Insurance Program, which is serviced by private carriers, and from a few specialty insurers.  More information about flood insurance or to get a quote, visit http://www.aigtexas.com/insurance/flood.html

7. Is the house well built? Homes built by reputable builders using disaster resistant materials and designed to meet current building codes are likely to better withstand natural disasters.

8. What is the construction of the home?  Homes that are constructed of more thn 50% masonry(brick, rock, stucco, hardy-plank), are less expensive to insure than home that are mostly frame construction.

9. Does the home have a pool?  If the home has a pool, insurance companies will require it to be fenced.  And if it has a slide or diving board, insurance may be denied all together.

10. What is the cost to replace the home in the event of a total loss?  The price you pay for the home, or the tax appraisal records, are not reflective of what it will actually cost to replace the home.  Insurance companies factor in square footage, age, construction, number of bathrooms, and other features to determine what they will insure the home for.  When getting home insurance quotes, make sure you are getting quotes based on the actual replacement cost.

     A knowledgeable home inspector and your insurance agent can be helpful in answering these questions. Keep in mind, that the size, location, construction and overall condition of the house can affect the cost, choice and availability of home insurance.

     Watch for our “Home Buyers Insurance Checklist” in our next blog.  It provides information on what to do before buying a house, factors to consider when looking at homes and placing a bid, as well as tips to properly insure your new home.

     For  additional information visit Austin Insurance Group – About Home Insurance.

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