My friend here in Houston, Texas, occasionally borrows my car. Do you think I should add him under my car insurance policy?

Betty

Houston, TX

It is highly recommended that you do two things: add your friend under your auto insurance policy as an “occasional driver”, or have your friend get a Non-Owner’s insurance policy under his name. In any case, it would not be wise to allow your friend there in Houston (or anyone, for that matter) to drive your vehicle without adequate auto insurance coverage. Also, under the financial responsibility laws of Texas, anyone who drives a vehicle (not necessarily the owner alone) is responsible (and is required to) acquire appropriate financial coverage in the form of auto insurance. The purpose of this law is to make sure that anyone who causes injury or damage to others during a car accident is able to provide the necessary monetary compensation.

In case you’re wondering, a Non-Owners Auto Insurance usually only provides liability protection, meaning that it will only protect you or your friend from having to pay large sums of money when he caused a car accident while driving your vehicle. So if your vehicle is damaged or totaled, it will be under the discretion of your auto insurance provider whether to reimburse you or pay for repairs. Also make sure you have enough collision and comprehensive insurance coverage if you will have someone else you’re your vehicle. You don’t want to regret not taking these steps to protect you if your friend end’s up totaling your vehicle.

I was good enough to get my license here in Houston, Texas suspended and that kind of snow-balled into my car insurance getting canceled as well, what I’m wondering about is I’m told that I will need to maintain an SR-22 form, what is it?

Carla

Houston, TX

An SR-22 is a type of form guaranteeing the state of Texas that you are carrying adequate financial capability (in the form of car insurance coverage) in the event that you cause injury or damage to property resulting from a car accident. This is mandated by the financial responsibility laws of your state and yes, repeat traffic offenders or those at-fault on a vehicular accident will be required to maintain an SR-22 for at least two or three years.

Since your auto insurance got canceled you will need to find another insurance provider there in Houston that will file this form for you, and submit it to the Department of Motor Vehicles (DMV). There may be some administrative fees involved aside from any penalties you may be required to pay to get your license (or a temporary license) back so you can drive again. A good auto insurance agent will be able to give you all the information you need and whatever steps you need to do to file an SR-22 quickly and hassle-free.

It is very important that you maintain continues coverage for the duration of your SR-22. Getting involved in another car accident or managing to get your driver’s license (and much worse, getting caught driving without insurance coverage or while your license is suspended) revoked will only result into significantly heavier fines and penalties and much higher insurance rates.

Why would Car insurance companies refuse to offer me insurance coverage? I live here in Houston, Texas and I’m surprised that I had a hard time getting car insurance!

Monty

Houston, TX

There are many reasons why car insurance companies may choose to deny you coverage which is a very difficult predicament seeing as the financial responsibility laws there in Houston, Texas (and most other states) would require you to have some level of car insurance coverage when on the road.

Here’s some of the reasons why an auto insurance provider might refuse you coverage:

1. Your city or location has very high crime-rate involving car theft and vehicle vandalism.
2. Your driving record is less than stellar and you may have even been caught or convicted Driving Under the Influence (DUI) or have other charges resulting from moving violations.
3. Your credit rating is really bad. As in really, really bad.
4. You’ve filed too many claims with your previous car insurance company.
5. You lack driving experience or you haven’t had any other kind of insurance in your life before.

So what if you’ve said yes to most of the items listed above? How can you get the car insurance you need? To good news is that there are still car insurance providers out there that are willing to cover you, for a higher price of course. You just have to look for them. You could also participate in the state assigned risk pool. This is a collection of insurance providers who have agreed to provide you coverage regardless of your record but expect higher premiums.