Allowing a minor to drive your car when he or she does not yet have a driver’s license is reckless and dangerous. The chances of an accident increase when a driver has limited experience behind the wheel, so it is possible that a parent may be held responsible if a teenager gets into an accident while driving a family car before obtaining his or her license.

Level of Responsibility

The level of responsibility that a parent might face can vary based on the situation, but in general the parents can be held financially responsible for the situation. You may be required to pay for any property damages and injuries that your teenager caused if he or she got into an accident while driving your car.

Suspended License

In most cases, parents will not have their license suspended when they allow a child to drive a car, but they may face fines or additional consequences. In certain situations, it may be deemed appropriate for a parent to lose his or her license due to the severity of the accident or any related problems.

Parent are often held responsible for the actions of their teen child, particularly if permission was given to drive the car. In certain instances, a parent’s license may be suspended. In other cases, the minor may not be allowed to obtain a license for a set number of years and parents face financial responsibility for the accident.

It is never a good idea to allow a teenager behind the wheel of a car unless it is legally appropriate. If a teenager has a permit, then a parent should always be in the passenger seat. Contact us to talk to an agent for more details.

We all worry about whether or not our insurance premium will go up if we get into an accident and have to file a claim. When you file a claim with your insurance company and they issue you a check to fix your car, the amount of the check may or may not influence your insurance premium.

Each auto insurance company has their own set of rules for when a claim may result in an increase in a customer’s premium. The amount that the insurance company has to pay on a claim factors into the rate that you will have to pay when you renew your policy. Some insurance companies have a first accident forgiveness policy, where your rates won’t go up if you have a minor accident.

Fault sometimes enters into the equation. If you are found to be the cause of an accident, it is more likely that your premium will go up than if the other driver was at fault. There is no direct link to how much your insurance premium will go up based upon the amount of the payment you receive from the insurance company to fix your car.

Whether you are at-fault, or just the unfortunate victim of another driver’s negligence, only matters if the accident winds up costing the insurance company more money to settle a claim. Both the size and the number of claims you file have an impact on how much you will have to pay for auto insurance. One small fender bender, when you have been insured with the same company for five years, will probably not affect your premium. Two major accidents in two years will be more likely to result in a higher premium.

It’s not uncommon for some drivers to own multiple cars that are covered by separate car insurance policies with different carriers. For instance, you may have a daily driver covered under one provider and an antique or classic vehicle insured under another insurance provider. In other cases, you may have purchased a second vehicle for yourself or a loved one and, for whatever reason, decided to create a separate policy with another provider for that particular vehicle.

If the above applies, the only insurance provider you have to report an accident to is the one under which your vehicle is specifically covered. Given that the other vehicle you own isn’t involved, filing a claim with the other insurance provider isn’t necessary.

Another common scenario involves switching from one provider to another. Although it’s best practice to have your new car insurance policy’s effective date coincide with the end date of your old policy to avoid gaps in coverage, the two policies may overlap. If you have an auto accident during this overlap period, you should consult with your independent agent to determine the best course of action to take.

Remember, different insurers can cover different vehicles in your household fleet, but having two active policies on the same vehicle can bring about complications in the event of a claim and even result in a denial of coverage by one or both companies, plus it may not be allowed in your state, by your insurer or both. Don’t forget that our agents are always available to help answer the tough questions and work out your car insurance issues with you.

Buying a comprehensive auto insurance policy in Dallas – Fort Worth, Texas may provide peace of mind. Even though the basic rates may be a little high when compared to buying only the minimum coverage, the protection is better and you are less likely to face financial challenges when unexpected situations arise. Making a claim on your policy may or may not impact your premium, depending on the details of your plan and any promotions that you have applied.

Promotions

Applying discounts and promotions to your policy can help you keep the premium within a reasonable rate. Promotions are often provided for very specific situations, such as a student who has good grades getting a discount for their responsible behavior.

Some insurers may offer a forgiveness promotion so that your premium does not increase the first time you make a claim. Forgiveness programs may vary, so consider the situations that fall under the program before you assume that it will apply.

The Claim

Small claims, such as repairing a windshield after a tree branch fell on it, may not have a major impact on your premium. The reason is that the claim is related to a particular situation that did not cause major damage to your vehicle or the vehicle of another person.

Claims after an accident may result in a higher premium because of the possible cost of the situation. The exact impact of an accident may vary.

Making a claim does not automatically mean that your rates will increase, but it can have an impact on your auto policy. Contact Paragon Independent Insurance Agencies to talk to an independent agent for more information about your options and promotions that may be available.

Visiting a different city or state for a vacation or business trip may require a rental vehicle. The problem you may worry about is the insurance coverage for that car. Fortunately, you may be covered for auto rental under your Dallas / Fort Worth, Texas insurance policy.

Look at the Current Policy

Although some insurers will cover a rental vehicle, the amount of coverage and the options available to protect the vehicle and other drivers may vary. Renting a car does not necessarily mean that you have coverage under your current plan.

Look through your current policy to determine if you are covered. Each insurance provider will have a different policy regarding your ability to apply your current coverage to a rental vehicle. Never assume that you are covered.

Be Aware of Exceptions

When you are looking at your auto insurance plan, pay attention to the exceptions. You may be able to rent a vehicle and cover it under your current plan, but there may be exceptions about the location or the type of rental company that you may use. For example, you may be able to cover a rental vehicle in The Woodlands / Austin area, but might have an exception that prevents you from the same amount of coverage in the Amarillo / Waco area.

The clauses and exceptions help define your policy and tell you what is not allowed. Read through your exceptions and clauses to ensure that your coverage plan will protect a rental vehicle.

Renting a car while you are on vacation or a business trip does not necessarily mean that you need to purchase additional insurance. To learn more about rental coverage options, call us to speak to an independent agent today.