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Texas Legislature Targets Named Driver Policies

Many people have been trying to save a little money on their auto insurance by purchasing policies that only cover one individual driver rather than offering coverage for an entire household. These “named driver” policies are appealing because they tend to be very cheap, but the fact that they only cover one individual has resulted in problems. Most vehicles are driven by more than one member of a household, which means that sometimes drivers who are not protected by the named driver policy get into accidents. That is especially common when there are members of the household that do not realize that the cheap car insurance Texas policy only covers one driver. That can be a significant problem not only for the driver himself, who will not have an insurance company’s help to repair or replace his damaged car, but also for everybody else involved in the accident.

Named driver policies can be contrasted with liability insurance, which is the most popular type of auto insurance in Texas. Liability insurance covers a vehicle rather than a driver, so the policy works the same way regardless of who happens to be driving the car during an accident. Most insurance companies in Texas offer liability policies, but most of the larger companies refuse to sell named driver policies.

The Texan House of Representatives voted to ban the named driver policies completely, but the Texan Senate did not allow the bill to get out of the committee stage. Instead, the Senate passed a bill written by Wendy Davis, who represents Fort Worth in the Senate, which increased government oversight and regulation of named driver policies but did not completely ban that type of auto insurance. The limits to a named driver policy must be clearly listed on the insurance ID form. Furthermore, insurance companies are now obligated to inform policyholders that only a single driver is protected by the policy. They must provide the information both orally and in writing. Finally, the bill forbids insurance companies from selling policies which do not meet the minimum coverage requirements set by Texas state law.

One advantage to the new law is that policy officers will be able to quickly and easily determine if a driver has proper insurance coverage or not simply by looking at the driver’s insurance documents. Previously, a policy officer would not know if a given driver was protected by a car’s auto insurance policy without performing extensive research. Now that the limits of the coverage need to be clearly printed on all of the documentation, the police officers of Texas will have a much easier time doing their jobs.

Named driver policies remain an unpopular form of auto insurance with the legislature of Texas. Many legislators are preparing to continue efforts to ban the auto insurance policies during the next legislative session. At the same time, they are teaming up with members of the insurance industry to make sure that people are educated about the benefits and limitations of this variety of auto insurance (website).

Factors To Consider When Reviewing The Options In Health Insurance Texas Companies Are Offering

There are a number of factors that you should consider when reviewing the options in health insurance Texas companies are offering. This is especially true when looking to bind coverage that will supplement an existing plan. With a diligent review of available plan services and features, you can avoid costly redundancies, limit your spending and get all the service and support you need.

Plan Redundancies

The Affordable Care Act has made it necessary for all U.S. residents to have basic health care in place in order to avoid costly tax penalties at the year’s end. This has left many consumers with only the minimal amount of coverage and insufficient protections for meeting their full range of needs. In order to expand upon an existing cover without spending beyond your means, you will have to look for areas of redundancy when comparing supplementary policies.

An area of redundancy is an area of coverage that is repeated across both a basic plan and a supplemental plan, without providing any additional value. As you bind supplemental coverage, make sure that this only addresses gaps and areas of vulnerability. Policyholders will not receive any extra compensation or benefits for services that are represented under two or more policies.

Deductibles And Co-Payments

Your plan deductible represents the amount of money that you’ll have to spend out of your own pocket, before your medical care becomes the financial responsibility of your insurer. A high deductible will invariably lower your coverage premiums, however, if you set this too high, you may have a hard time handling this portion of your insurance costs. It is important to achieve a nice balance of affordability between your deductible and your premium. You must additionally consider the cost of co-payments or the out-of-pocket fees that will be due and payable at the time of each office visit.

Prescription Costs

When considering the options in health insurance Texas locals have access to, you always want to account for the costs of individual prescriptions. If these costs are too high, a plan could render important medications inaccessible. As you make side by side comparisons of insurers and their products, be sure to account for all secondary fees that each plan includes.

Your Provider Network

When binding health insurance Texas residents should make an in-depth review of the different medical professionals that will be available in their coverage networks. Low premiums, deductibles and co-payments will not provide an optimal amount of value if you do not have access to providers and medical facilities that you feel comfortable with. Spend some time learning more about the available physicians and the patient reviews that have been posted in conjunction with the services they supply. You also want to make sure that your network will give you access to a number of high-quality medical facilities within your geographic area that are easy to access. These facilities should additionally include urgent care clinics and providers who can meet your health needs when your regular doctor is unable to schedule same-day or next-day appointments.


Who Pays for Texas Homeowners Insurance During Reverse Mortgages?

Have you ever heard of someone being “House Rich & Cash Poor?” This is becoming a more common occurrence as wealthy senior citizens enjoy the benefits of having paid off most of their mortgages over the years. They have a very valuable cash cow in their dwellings based on the home equity.

An additional advantage is that Texas home values have appreciated tremendously over the last couple of decades. Most older homeowners are amazed at the asking price for their old home sweet home. All of this built-up home equity can be extracted using reverse mortgages.

For while Texas grandparents may be asset-rich, they might not have much cash flow for day-to-day expenses. Grandparents may want to buy a special graduation gift, pay for a well-deserved vacation or make some important home repairs. Most reverse mortgages will provide a line of credit to homeowners. But who pays for homeowners insurance during reverse mortgages?

When you start considering reverse mortgages, you might be confused by some of the terms. You can qualify for non-profit, for-profit or governmental reverse mortgages. You can get adjustable rate or fixed rate reverse mortgages. Two more terms to pay close attention to are 1. Mortgage Insurance and 2. Set-Aside.

Aren’t mortgage insurance and homeowners insurance the same? The terms sound eerily similar, but are actually quite different. Mortgage insurance is a financial protection for the bank against you defaulting on the loan. Homeowners insurance is a financial protection for you, your property and belongings.

Of course, with a normal mortgage, the homeowner pays for the homeowners insurance. The truth is that this does not change under the reverse mortgage. The homeowner will still hold the title for the property with a reverse mortgage and will be responsible for home repairs, taxes and homeowners insurance. That is why when calculating a reverse mortgage, it is wise to include these expenses in the total.

Lenders will usually conduct a financial assessment of your home value, including property taxes and homeowners insurance. Lenders might establish a “Set-Aside” fund where the money for the loan is locked in for paying taxes and insurance. The lender does not want the reverse mortgage to overburden the homeowner. Homeowners insurance, mortgage insurance and normal mortgage payments will still be made by homeowners.

Setting up a reverse mortgage line of credit could help with much-needed home repairs. You want your house to be in good shape to retain the highest resale value. You can usually withdraw a lump sum at the beginning of the reverse mortgage for home repairs. So, while it may be advantageous to withdraw a portion of your home equity with a reverse mortgage, you will need to carefully review the origination charges, service fees and closing costs.

While reverse mortgages may be ideal for some Texas property owners, they may be overly burdensome for others. Your homeowners insurance policy is just one issue that may lead you to have second thoughts about whether a reverse mortgage is right for you.