Insurance premiums add a sum of money to the budget every month that you may wish could go toward other things. During difficult financial times, insurance coverage is often the first to be dropped when people want to save money. Even though you are spending money each month and not seeing an immediate benefit, insurance coverage is actually one of the most important expenditures that you could make.
The Consequences of Lapsed Auto Insurance Coverage
It is critically important that you maintain your auto insurance coverage. If you fail to do so, the next insurance company may penalize you with higher premiums when you apply to purchase coverage. If you have been in the habit of cancelling your policies, the insurance agent will assume that you will repeat this action in the future and charge you as much as 20 percent more than those who are expected to keep their policies intact. In the worst case scenario, they may refuse to sell you a policy.
Another reason to maintain auto insurance coverage is to follow the state’s financial responsibility laws. In Texas, you must have liability insurance that will cover the medical bills of everyone that is hurt in a car collision that you cause. You must also have liability insurance that will pay for property damage in the minimum amount that the state has set. If you do not have this coverage, you will be legally liable for paying the medical and property repair bills for everyone affected in the accident, and this can be devastating to your finances.
What Can Happen When You Fail to Purchase Home Insurance?
Your home insurance policy is equally as important as your auto insurance policy. You will be extremely happy that you have home insurance if your home is damaged or completely destroyed especially when finances are tight. For example, if you do not have an active policy when your house burns down or is damaged by violent weather storms, you would have to pay to have your house re-built or repaired on your own. However, you may not be prepared to meet such a tremendous expense.
You also have the question of liability to consider. If a guest to your property is hurt, you may be found liable in court for this person’s injuries and ordered to pay a great deal of money to the defendant. If you are unable to pay this amount in full, the court can garnish your wages for years until it is paid. You would also need to pay for your legal defense. If you maintain your home insurance policy, you will have a sum of money to help you pay your legal bills and to pay the judgment that is awarded to the defendant.
Extreme Weather and Your Home or Car
Tornadoes and hurricanes are events that can cause expensive damage to a house or to a car. If your home or car is damaged due to extreme weather, you will be responsible for repairing or replacing your property. Your home insurance policy will cover the damage that is done by extreme weather, and the comprehensive coverage under your optional auto insurance policy will do the same for your automobile.
Contact a Sugar Land Insurance Agent Now
To keep from experiencing the financially ruinous effects of not having home or auto insurance in southeast Texas, you must speak to a Sugar Land Insurance Agent. Your agent can put together a Sugar Land Homeowners Insurance policy that will be tailored to fit your needs exactly. Your Sugar Land Auto Insurance policy can include the basic coverage of liability insurance and optional insurance as well for additional protection. Contact a Sugar Land Insurance Agent before your coverage expires so that you and your family are protected.