Cheap Commercial Auto Insurance in Texas

Reader’s Question:

I sometimes use my car to deliver and pick up packages from the office here in Texas, but I am not included in the company’s list of insured drivers. Will I need commercial auto insurance?

Kevin

San Antonio, TX

Using your own car to deliver packages for the company may well be considered as car used for business purposes. This means that you receive some sort of payment or fee or tip from your company for doing this chore for them. This type of vehicle use falls under the category of livery use. If your coverage in the State of Texas is personal passenger car insurance, then you will not be covered in the event that you get into an untoward accident while delivering packages.

Read the exclusions section of your policy thoroughly to be certain. If you are not covered, then you should stop doing this odd job for your company, so as to save yourself from the potential burden of having to pay for your own medical bills and car repairs because of denied claims. Perhaps you should also discuss this issue with your supervisor. If this task of delivering and picking up packages starts becoming more frequent, maybe you should request the company to give you commercial use coverage. Your other option is to advise your local insurance agent in Texas about this particular use of your vehicle. You might be required by your insurer to obtain commercial auto insurance. This will definitely have higher rates compared to what you are used to paying currently for your premiums.

Difference Between Auto Insurance Brokers And Agents

Reader’s Question:

Are auto insurance brokers and agents the same? How do I pick a good broker here in Nebraska?

Walter

Omaha, NE

First of all, there is a difference between an auto insurance brokers and agents. A broker works independently from any auto insurance company, whereas an agent works for a single insurance company only. Brokers have the advantage of working with many providers and can give you offers or uncover low rates from many different companies. Agents could also probably give you a wide range of rates and choices but only by what their auto insurance company can offer to customers.

So it would be to your advantage to choose a good broker there in Nebraska. Here are a few tips to help you out.

” Go for an experienced, full-time broker that has access to more companies therefore giving you more choices.
” See if your broker is licensed, you’d be surprised how people neglect to do this but you want someone to transact your business legally.
” Get someone who will listen to you, who can explain the state requirements for auto insurance and would give you options and not just hard-sell you to a single policy.

These days however, the role of agents and brokers have been steadily diminishing due to the role of the Internet as the most effective medium to gather rate comparisons in an easy manner. There are many auto insurance portals and websites (just like this one) that allows you to compare for the lowest rates across many carriers.

How To Become Auto Insurance Broker

Reader’s Question:

What are the steps I should follow to become auto insurance broker? I have thinking about having this as I career since I also have an insurance background.

John

Newark, NJ

Insurance is a good career to get involved in, especially since it is something that people will always need. Nowadays, auto insurance is emerging to be the most popular policy, since people are looking for use vehicles daily for both personal and professional purposes. Why not cash in on the trend and become auto insurance broker?

All you need to do is follow these steps to become auto insurance broker:

1.) Educate yourself. You have two options – you can take one year of insurance-related courses in college or rack up five years of experience working for an insurance firm.

2.) Take the insurance broker’s license examination. Pass this test and you’re on your way to become auto insurance broker. Make sure, however, that your record is spotless because individuals charged with felonies will not be allowed to take this exam.

3.) Go the next step. Take the auto insurer’s broker license exam. This way, you can adeptly discuss the different types of auto insurance to your possible clients.

4.) Don’t stop learning. Polish your knowledge by attending continuing education courses. This way, you will be kept abreast of the latest trends in the insurance business.

5.) Renew your license on a yearly basis. Keep yourself an official insurance agent by renewing your license annually.

Personal or Business Auto Insurance: Which One to Choose?

Reader’s Question:

I have a small home-based business, which has been doing well for quite some time already. Now I am already thinking of expanding. If everything falls into place, I will have to start thinking about adding more vehicles. But I do not know whether to get business automobile insurance or not. Would it be better if I avail of personal automobile insurance?

Lily

Jackson, MS

Actually, Lily, you’re not the only one getting confused about whether to get personal automobile insurance or business automobile insurance. It is usually the dilemma of most people who businesses based in their own homes. Most of the time, the majority of business owners are protected by having only their personal auto insurance policy, but this is not always the case.

The thing that you have to remember when choosing whether to get personal automobile insurance or business automobile insurance is the nature of your business.

If your business entails you driving around all the time, it would be best if you stick with business automobile insurance.

Let me give you some examples.

If the business that you run is some type of delivery service, it would mean that your vehicle would be out all the time. It would be better in this case for you to avail of business automobile insurance. On the other hand, if you are some kind of broker for real estate (and the likes) who just uses the vehicle to drive around with prospective clients, I think that personal automobile insurance shall suffice.

If you would think about it, the same things affect your premium. It still is a matter of how exposed your vehicles are going to be to accidents. This is what decides how much your premium is going to be. And also, the higher your liability limits and deductibles are, the less you are going to pay for your automobile insurance.