Archive for February, 2011

Uninsured Motorist and Texas Laws

Thursday, February 17th, 2011

Contact Austin Insurance Group for all of your insurance needs - www.aigtexas.com

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 The law of the land in Texas requires motorists to have automobile liability insurance, this is the type of insurance that pays for another person’s expenses if you cause an accident. 

In theory, every driver on Texas highways is covered by liability insurance to protect other drivers. 

In reality, some people drive without insurance, or they hit and run, or, even if they have the minimum coverage required by law, it is not enough to cover the damage.

 Texas law gives you the opportunity to buy insurance coverage to protect yourself against both uninsured and underinsured motorists.   This coverage is optional, but your insurer must offer you the opportunity to purchase it, and your refusal to purchase it must be in writing.   This coverage protects you, your family members, passengers in your vehicle, and anybody driving your vehicle with your permission.  It pays your medical and funeral expenses, car repairs, car rental, the replacement of damaged contents, lost wages, pain and suffering, disfigurement, and permanent or partial disability up to the dollar limits that you have purchased.

You can buy uninsured or underinsured motorist coverage in the minimum amount or in a larger amount up to the dollar limits of your liability policy. If you are not sure what choice you made when you were offered the opportunity to buy this coverage, talk to your insurance agent or call Austin Insurance Group 512-339-2901.

Your liability coverage protects you from having to pay damages to someone if you cause an accident.  But it will not pay your expenses resulting from an accident with an uninsured or underinsured motorist. Uninsured motorists often have few assets, and you could face significant financial hardship if you do not have this coverage and you are injured by such a driver.

Even if the other driver has liability insurance, it may be only the minimum amount, and this coverage can quickly be exhausted. Medical care is expensive. The replacement cost of even a single vehicle easily can be $30,000 or more.

Your underinsured coverage kicks in to pick up all or part of the difference once the other person’s liability limits are exhausted.

Our recommendation:  Purchase at least the minimum amount of uninsured and underinsured motorist liability coverage and property damage.  If possible, have as much uninsured and underinsured coverage as you have liability coverage. This may be your only protection against uninsured and underinsured motorists. 

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And make sure that your uninsured/underinsured motorist property damage limits exceed the cost to replace your vehicle.  If your vehicle is valued over $25,000, then you should carry the next level of $50,000, and so on.

If you are unsure about the limits to carry, contact our office today.  We’re here to help make sure you have the coverage you need in the event of an accident. 

Your Local Agent

Austin Insurance Group

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Uninsured/Underinsured Motorist Coverage: Critical Coverage or Scam?

Monday, February 14th, 2011

There seems to be two schools of thought on uninsured coverage: Either drop it completely, or buy as much as you can afford.

1. Drop It Completely, It’s a scam
This line of thinking states that you don’t need this if you get into an accident with an uninsured driver, because

a) Your health insurance will cover your medical bills.
b) Your collision insurance will cover your car damages, although you have to pay your deductible. With uninsured coverage, the deductible in Texas is $250.

There are a couple problems with this theory. First, you need good health insurance that covers you in a car accident. Some actually specifically exclude car crashes where it is someone else’s fault. Also, many people these days have a very high annual deductible, or even just have to pay 20% flat of all medical bills. And what about lost pay and also future wages? That can get pricey.  And what if you had passengers.  If they have no health insurance, they have no coverage.

Also, if you do not have collision coverage, your vehicle damage would not be covered at all.

2. Buy as much as you can afford
This theory basically focuses on the idea that this is where you are buying insurance for yourself and your family, versus liability coverage for others. Now, if you get hurt in an uninsured accident, you don’t have to depend on the guy with no or even the legal minimum $30k of coverage. You have your own $30k, $50k, $100k, $250k, or even $1M of coverage. No need to get your health insurance involved and pay and deductibles. Of course, this means you will be asking your own insurance company for money, and will probably want a lawyer on your side. You want to get everything you can, lost wages, future wages,”pain ansuffering” damages, etc.

And even if you only carry liability insurance and do not carry comprehensive and collision on your own vehicle, you should purchase uninsured motorist property damage to cover damages to your vehicle when hit by someone who has no insurance, or who doesn’t have enough.

It’s all about how much you’re paying and that risk/reward balance… What do you think?

Austin Insurance Group (512) 250-1660

Providing all types of insurance for Texans since 1994.

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Frozen Pipes

Thursday, February 3rd, 2011

Preventing Freezing Pipes*

Frozen pipes can pose a problem anywhere temperatures hover around 0 degrees Fahrenheit. While the good news is that frozen or burst pipes do not endanger people, the bad news is that the damage to your home or property can be extensive –damaging floors, ceilings, walls, rugs and furnishings. Even a tiny 1/8-inch crack can spill up to 250 gallons of water per day. That’s why it makes sense to take whatever steps possible to prevent your pipes from freezing and bursting.

Before freezing weather sets in:

  • Review your homeowners insurance policy to ensure you have adequate protection and appropriate coverages.  One of  our agents can can assist you.
  • Homeowners policies provide coverage for valuables, up to certain limits. For maximum protection, you should have jewelry, furs, silverware, fine arts and other valuables appraised, then scheduled separately to your policy. You’ll get the broadest coverage possible, with no deductible. Ask your Austin Insurance Group agent for more information.
  • Take an inventory of your personal property. Document this inventory with a videotape or photographs. Store the information, and any other important documents, in a safe deposit box. Austin Insurance Group offers a brochure that will guide you room-by-room, through an inventory — call your Austin Insurance Group for a free copy.
  • Make sure adult family members know how to shut off water and call a plumber if needed.
  • Insulate pipes, especially those close to outside walls, in attics or crawl spaces where the chance of freezing is greatest. If you have an outside electrical water pump, don’t forget to insulate it as well.
  • Wrap pipes with heat tape.
  • Seal leaks surrounding or near pipes.
  • Remember to bring garden hoses in and turn off and drain water to outdoor spigots at the cutoff valve.
  • If you have an outdoor pool or spa, check with the manufacturer on how to protect it from freezing.

During a cold spell:

  • Keep heat at 55° F. or higher.
  • Turn on both hot and cold faucets near outside walls to allow a small trickle of water to run during the night and, if seldom used, during extremely cold days as well.
  • Keep sink cabinet doors open to allow more heat to circulate around pipes underneath, particularly if located near exterior walls.
  • If you need to be away from home, leave the heat on or drain your water system before you go. Ask someone to check your house daily.

If your pipes freeze:

  • Open all faucets.
  • Remove insulation and wrap pipes in rags. If possible, pour hot water over pipes, starting where exposure to the cold is greatest. If that doesn’t thaw them, call your plumber. Don’t try to thaw pipes with an open flame of any kind.

If your pipes burst:

  • Shut off the water immediately to prevent additional damage.
  • Take proper precautions to avoid an electrical shock from being in or near standing water.
  • Call your plumber.
  • Take an inventory of any damaged property or possessions. Do not dispose of any items without the prior approval of your insurance adjuster.
  • In the event of a loss, contact your insurance claims office and a representative will assist you.

Note: Homeowners policies and coverages vary by state. An Austin Insurance Group agent will gladly explain the coverages provided by your policy and any regulations for the state in which you live.

*Source: Institute for Business and Home Safety, http://www.ibhs.org

Austin Insurance Group - 512-339-2900

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