Insurance Terms Archives - Grimes Insurance Agency

4 Things to Know Before Changing Insurance Companies

October 31, 2026/in Blog, Insurance Terms, Working With Grimes/by grimes

By: Linda Chapman, Retention – Executive

Executive Summary:

Changing insurance companies can help you save money, but a lower premium doesn’t always mean a better policy. Before switching, compare policy limits, deductibles, exclusions, endorsements, and claims service. Most importantly, don’t cancel your current insurance policy until your replacement coverage is confirmed and active. Understanding these four considerations can help you make an informed decision and avoid unnecessary coverage gaps.

Are you considering changing insurance companies? Maybe your premiums have increased, you’re frustrated with your current carrier’s customer service, or you’ve found a cheaper insurance quote. Whatever the reason, switching insurance companies can be a smart decision, but there’s more to consider than the price.

A lower premium could mean higher deductibles, reduced coverage limits, or missing endorsements that protect you against specific losses. Canceling your existing policy too early could also leave you without insurance when you need it most.

At Grimes Insurance Agency, we help clients compare insurance options and work through the details that can make or break a smooth insurance transition. We’ve seen firsthand why it’s important to look beyond the premium and understand the coverage and service you’re actually receiving.

Before you make a switch, here are four important things to consider.

1. Why are you considering changing insurance companies?

Before looking for a new insurance company, take some time to understand why you’re considering a change in the first place.

Insurance doesn’t fit everyone perfectly, and we’ve heard plenty of reasons why clients consider changing carriers. Some of the most common answers include:

Increasing premium prices
Inadequate coverage for their needs
Inconsistent communication
Disappointing customer service during a claim

While these are all valid reasons to explore other options, it’s important to understand what’s causing the problem before making the decision.

For example, if your insurance premium has increased, consider whether changes in the insurance market, claims activity, or your individual policy have contributed to the increase. A higher premium doesn’t automatically mean a different insurance company is a better fit.

On the other hand, if you’re consistently experiencing poor communication, or aren’t receiving the service you expect, exploring other carriers may make sense.

The first step is understanding what you want to improve. Do you need help personalizing your policy? Read about Grimes’ Approach to Personalized Insurance to learn how you can make your coverage fit better.

2. What should you compare before changing insurance companies?

If you find a cheaper quote, ensure that it’s a better deal before you make things official. We recommend comparing the policies themselves, not just the premiums. This looks like reviewing items such as:

Coverage limits
Deductibles
Liability limits
Exclusions
Endorsements
Policy fees and discounts
Claims service and company ratings

A lower premium can be a smart move if you’re getting comparable protection from a carrier that meets your needs. But if the savings come from lower limits, higher deductibles, or missing coverage, you may be taking on more risk than you realize.

For example, saving $1,000 a year on your homeowner’s policy could be worthwhile if the coverage is comparable. However, what happens if the new insurance company doesn’t offer an important endorsement you currently have, such as hidden water leakage and seepage coverage?

That missing protection could make the potential savings less attractive if you experience a loss that would have been covered under your previous policy.

When comparing, the goal is to find the right balance between price, coverage, and service. Simply looking for a cheaper policy doesn’t guarantee the right move.

How should you evaluate an insurance company’s claims service and ratings?

Price and coverage aren’t the only things that matter when choosing an insurance company. You should also consider how the carrier handles claims and what its financial and consumer reputation looks like.

After all, insurance is something you purchase to help protect yourself financially when something unexpected happens. You want confidence that your insurance company will respond appropriately when you need to use your coverage.

At Grimes Insurance, we’ve seen how much these details can matter. In one client’s case, a sewer backup flooded their home from the alley.

Because the backup didn’t begin on her property, her (SafeCo) policy wouldn’t initially cover the claim. Instead, the incident was considered a city responsibility. However, when the city denied her claim, we alerted her carrier.

SafeCo stepped in and ultimately agreed to pay her $25,000 claim. The carrier also helped her pursue the matter with the city.

This experience illustrates why claims handling matters in addition to price. Not all carriers handle similar claims the same way. Coverage depends on the policy language, applicable endorsements, the facts of the loss, and the insurer’s claim determination.

How do you review an insurance company’s ratings?

Several resources can help you research an insurance company’s financial strength, complaint history, and reputation.

One useful resource is the National Association of Insurance Commissioners (NAIC) Consumer Insurance Search tool, which provides information to help consumers research insurance companies, including complaint information and licensing details.

The Insurance Information Institute also recommends the following resources when comparing:

3. When should you cancel your existing insurance policy?

If your comparison leads you to switch companies, DO NOT cancel your existing company’s insurance policy until your replacement coverage is in place.

This is one of the most important steps in the switching process. A quote is not the same as an active policy, and an application may still be subject to underwriting requirements or final approval.

If you cancel your existing policy before your new coverage begins, you risk falling into an insurance lapse. If a covered event occurs during that period, you’d be required to pay for the loss yourself.

What is an insurance lapse?

An insurance lapse occurs when your existing policy ends and replacement coverage is not active for a period of time. Even a short gap matters, potentially affecting your ability to obtain insurance or the price you’re offered later.

Lapsed insurance is extremely common when policyholders change companies. It can take time for an insurance policy to be bound with a new carrier, and cancelling your old policy before it’s ready can leave you uninsured.

How can you avoid a coverage gap when changing insurance companies?

To avoid this mix-up, stay in constant communication with your agent and don’t cancel until your new coverage is verified.

Before cancelling your current insurance, confirm:

The new insurance carrier has accepted your application
All underwriting requirements have been completed
You understand the final premium, deductibles, limits, and exclusions
You have written, verified confirmation of the new policy and its effective date and time

At Grimes, we get that insurance timelines can get confusing, but you don’t have to face them alone. We’ll help you coordinate the transition so you know when your new policy is active and it’s appropriate to cancel the old one. If you’re considering an insurance company change, call our office to connect with an agent before submitting a cancellation request.

4. How do you change your insurance company?

Changing insurance companies is easier when you follow a clear sequence. Each step has a purpose, and completing them in the right order reduces the risk of missed payments, incorrect policy details, or lapsed coverage. After a conversation with your agent,

Review your current policy
Gather accurate information for quotes
Compare policies
Complete your new application and any required payment
Confirming your new coverage is active
Cancel your old policy

Following these steps can help you make a smooth insurance transition while maintaining the protection you need.

Grimes Insurance can help you change insurance companies

Changing insurance companies can be a worthwhile decision, especially if you’re able to find better coverage, service, or pricing elsewhere. But before making the switch, take the time to understand why you’re leaving, compare the actual policy details, research the new carrier, and coordinate your cancellation dates.

Remember, the goal isn’t about finding a cheaper insurance policy. It’s finding the right protection at a price that makes sense for you.

At Grimes Insurance Agency, we understand how important it is to feel confident in your insurance coverage. With a network of 100+ insurance carriers, we’ve helped clients navigate policy changes, compare carriers, and work through the details.

If you’re considering changing insurance companies, call our office to connect with an agent. We’ll help you evaluate your options, understand the differences between policies, and determine what makes the most sense for your insurance needs. Or, if you’re still debating, learn more about coverage gaps and learn How to Tell if You’re Underinsured.

Frequently Asked Questions About Changing Insurance Companies

Can you switch insurance companies at any time?

In many cases, you can change insurance companies before your existing policy expires. However, your current policy’s cancellation terms may affect the process, including whether cancellation fees or other charges apply.

Review your policy and speak with your insurance agent before making a change.

Will you receive a refund if you cancel your insurance policy early?

You may receive a refund for the unused portion of your premium if you cancel your policy before its expiration date. However, the amount depends on your policy’s cancellation terms and whether any fees or other charges apply.

If your homeowners insurance premium was paid through an escrow account, you may have additional questions about what to do with your refund. Read our article, Got a Refund Check from Your Old Insurance Company?, to learn what happens to that money and whether it needs to go back to your mortgage company.

Ask your current insurance company how it calculates refunds before canceling.

Does changing insurance companies affect your insurance history?

Switching insurance companies doesn’t automatically erase your previous insurance history. New insurers may consider factors such as prior coverage, claims history, and previous lapses when evaluating your application.

Maintaining continuous coverage is important when transitioning between carriers.

Insured vs. Uninsured vs. Underinsured: What’s the Difference?

September 30, 2026/in Blog, Insurance Terms/by grimes

By: Hayley Rodriguez, Personal Lines – Sales Executive

Executive Summary

Having auto insurance doesn’t always mean you’re fully protected. An insured driver has coverage, an uninsured driver has none, and an underinsured driver doesn’t have enough to cover the full cost of an accident.

You could have insurance and still be financially responsible if another driver doesn’t have enough coverage. That’s where uninsured/underinsured motorist (UM/UIM) coverage can help protect you from the resulting financial gap.

You have auto insurance. You pay your monthly premium. You should be protected in an accident, right?

Unfortunately, not always. Having insurance doesn’t always mean having enough insurance. If the driver who causes an accident has no insurance or doesn’t have enough coverage to pay for the damage they cause, you could be left dealing with the difference. And trying to understand where your coverage falls is an uncomfortable place to be in.

At Grimes Insurance Agency, we’ve helped West Texas drivers understand their auto insurance coverage since 1948. We believe policyholders should feel educated and confident about what their insurance actually protects.

In this article, we’ll break down:

What it means to be insured, uninsured, or underinsured
How uninsured/underinsured motorist coverage can help
What happens if you’re involved in an accident with an uninsured or underinsured driver
What to look for when reviewing your own auto insurance policy

What does it mean to be insured, uninsured, or underinsured?

The simplest way to understand the difference:

Situation	What it means
Insured	The driver has an active auto insurance policy.
Uninsured	The driver has no active auto insurance.
Underinsured	The driver has insurance, but not enough to cover the full cost of the accident.

The common thread all three terms have in common is liability insurance.

What is liability insurance?

Liability coverage is what helps pay for injuries or property damage you cause to someone else in an accident, up to your policy limits.

Most states require drivers to carry a minimum amount of liability insurance. In Texas, minimum liability limits are written as 30/60/25. This includes:

$30,000 per person for bodily injury
$60,000 per accident for bodily injury
$25,000 per accident for property damage

However, keep in mind that carrying the legal minimum and carrying enough coverage for your situation are two different things. That’s where the difference between being insured and being adequately insured becomes important. Let’s break down what these coverage levels can look like.

What does it mean to be an insured driver in Texas?

Being insured means you have an active auto policy that meets at least Texas’ legal requirements.

You can also add other coverages to your policy, such as collision and comprehensive coverage, depending on the protection you want and the requirements of your lender.

It’s important to remember that not all coverages are the same. Read What Does Full Coverage Car Insurance Actually Include? to learn which coverages you should consider adding to your policy.

What does it mean to be an uninsured driver?

An uninsured driver is someone who doesn’t have active auto insurance coverage.

If an uninsured driver causes an accident, there is no liability insurance policy available to pay for the damages they’re responsible for. In theory, the driver may be personally responsible for those costs. In practice, however, collecting from someone who doesn’t have insurance can be difficult.

Unfortunately, uninsured drivers aren’t rare. As of 2025, 11.87 percent of Texas drivers are uninsured. If approximately 1 in 8 Texas drivers are uninsured, that’s a real risk drivers should be aware of when considering their own protection.

But there’s another side to this problem: you don’t want to be the uninsured driver.

Maintaining the required auto insurance coverage is the first step. Letting a policy lapse, cancelling coverage without replacing it, or driving without the required insurance can leave you personally responsible for damages you cause.

If you’re currently uninsured and looking for coverage, Grimes Insurance Agency can help you search. Call our office to discuss the coverage you need and how you can find it.

What does it mean to be an underinsured driver?

An underinsured driver is different from an uninsured driver. An uninsured driver has no insurance. An underinsured driver has insurance, but their liability limits aren’t high enough to cover the full cost of an accident they cause.

Let’s consider an example.

Imagine you’re driving down Marsha Sharp Freeway when another driver merges and collides with your vehicle. The other driver is at fault, and the damage they caused to you and your vehicle is over $80,000. However, the driver is underinsured and only carries the Texas minimum liability limits. Covering only $50,000 of what they owe, you and your insurance company are left to cover the remaining cost.

That’s the coverage gap created by an underinsured driver.

And there’s a similar concern when you’re looking at your own policy: you don’t want to discover that your liability limits are too low after you’ve already caused a serious accident.

How do you know if you’re an underinsured driver?

Being underinsured isn’t always obvious. You may have an active policy, pay your premium every month, and still carry limits that don’t provide as much protection as you need.

Some questions to ask when reviewing your policy include:

What are my current liability limits?
Would those limits be enough to protect my assets if I caused an accident?
Have my financial circumstances changed since I chose my coverage?
When was the last time I reviewed my policy?

At Grimes, we typically recommend 50/100/50 coverage as a starting point for many clients, rather than automatically defaulting to Texas’ minimum liability limits. The appropriate coverage can vary depending on your circumstances, which is why reviewing your policy matters.

Worried you might be an underinsured driver? Read How to Tell if You’re Underinsured and learn what to keep in mind when purchasing your coverage.

What happens if an uninsured or underinsured driver hits you?

So far, we’ve looked at how to make sure you aren’t uninsured or underinsured.

But what happens when the other driver is?

If an uninsured driver causes an accident, there may be no liability insurance available to compensate you for covered losses. You may have to pursue the driver personally, which can be difficult if they don’t have the financial resources to pay.

If the other driver is underinsured, their insurance may pay up to its applicable limit, but that limit may not be enough to pay for all of your covered losses.

That’s where uninsured/underinsured motorist (UM/UIM) coverage can help.

UM/UIM coverage is designed to provide financial protection in the case of an accident involving a driver lacking enough coverage or with no coverage at all. It is a separate type of coverage that can be added to your existing auto policy.

Worried about an uninsured driver hitting you? Watch this video to learn what you can do if you are involved in such an accident:

In Texas, auto insurance companies are legally required to offer you UM/UIM coverage. If you decide to opt out of UM/UIM coverage, you are required to reject it in writing when finalizing your policy details.

The important thing to remember is that UM/UIM coverage addresses a different problem than your own liability coverage. Your liability coverage helps protect you when you cause an accident. UM/UIM coverage can help protect you when the at-fault driver doesn’t have enough coverage.

The difference between what the other driver’s policy pays and what you’re actually owed is the coverage gap. And that gap is where underinsured motorist coverage can be a lifesaver.

Grimes can help you be properly insured

Insurance shouldn’t be a guessing game. You don’t have to wait for an accident to find out if you have enough coverage.

By reviewing your liability limits, confirming your policy is active, and checking your UM/UIM coverage, you can get a clearer picture of how well you’re protected and where potential gaps may exist.

Now that you understand the differences between being insured, underinsured, and uninsured, your next step may be to understand when minimum coverage makes sense for you. Read Is Minimum Car Insurance Ever Enough? to learn how much coverage is enough for your auto situation.

Or, if you’re unsure what your policy means and want help with your coverage, feel free to tel:806-762-0544 to talk with an insurance professional. At Grimes Insurance Agency, we’ve been helping West Texas drivers understand their auto insurance coverage since 1948. We’ll connect you with an agent who can help you understand what you’re carrying and where potential gaps may exist.

Frequently Asked Questions

What’s the difference between uninsured and underinsured?

An uninsured driver has no active auto insurance. An underinsured driver has insurance, but their liability limits aren’t enough to cover the full cost of an accident they cause.

Is UM/UIM coverage required in Texas?

Texas insurers are generally required to offer UM/UIM coverage, and drivers can reject the coverage in writing.

How much auto insurance coverage should I carry?

There isn’t one coverage amount that makes sense for every driver. Your appropriate limits can depend on factors such as your assets, financial circumstances, vehicle, and risk tolerance.

How much does UM/UIM coverage cost?

The cost varies based on your policy and circumstances. Your insurance agent can explain what adding or increasing the coverage would cost for your specific situation.

How Do Insurance Deductibles Actually Work?

September 29, 2026/in Blog, Insurance Terms/by grimes

By: Hayley Rodriguez, Personal Lines – Sales Executive

If you’ve ever looked at your insurance policy and wondered, “How much am I actually going to have to pay if I file a claim?”, you’re not alone. Insurance is full of confusing terms and jargon, making it difficult to understand exactly what you need to know.

However, your deductible can have a big impact on what you pay out of pocket after an accident… and choosing the wrong deductible can leave you scrambling for cash when you need your insurance most. It’s an uncomfortable place to be in.

At Grimes Insurance Agency, we’ve helped clients understand the basics (including deductibles) behind their insurance policy since 1948. We want policyholders to be educated and confident when it comes to all things coverage.

In this article specifically, we’ll break down:

How insurance deductibles work
How they affect your premium
How to choose a deductible that fits your situation

What is an insurance deductible?

An insurance deductible is the amount of money you agree to pay out of pocket before your insurance company pays its portion of a covered claim.

For example, if you ding your car door and the repair costs $400, but your deductible is $500, you’d pay for the entire repair yourself.

Why do insurance companies have deductibles?

A deductible isn’t simply your “share” of an insurance claim. It’s also a way for insurance companies to limit small claims and keep insurance focused on larger losses.

Think about that $400 car-door repair. If your deductible is $500, there’s no reason to file a claim because you’re responsible for the full cost anyway.

That means you’re more likely to handle smaller repairs yourself, rather than putting every minor ding, scrape, or repair through your insurance. Your deductible creates a line between expenses you can reasonably handle yourself and losses where you need your insurance coverage to step in.

This is important because your claims history can affect your insurance costs, risk profile, and how insurers view your policy options. Point blank: your deductible can make or break your insurance process.

Did you know insurance carriers can see every claim you’ve made in the past seven years? Read How is Insurance Risk Calculated to learn how insurers review your claims history and how it can affect your insurance premiums.

Does a higher deductible really lower your insurance premium?

Generally, yes. The formula typically goes this way:

A higher deductible = a lower premium
A lower deductible = a higher premium

Raising your deductible will typically reduce your premium. Let’s bring back the car door example to watch the math.

Higher deductible = lower premium

Because your deductible was higher than the repair cost, you are absorbing more of the financial risk instead of your insurance company. In turn, your insurance company lowers your premium since you shoulder the most risk.

Lower deductible = higher premium

Because your deductible was lower than the repair cost, your insurance company shoulders the cost. This generally means your carrier will expect to pay more small claims, so it will charge you a higher premium to cover that exposure.

The relationship between deductible and premium

However, at the end of the day, keep in mind: the difference from raising or reducing your deductible isn’t always astronomical. In most cases, you’re looking at relatively modest monthly savings.

That’s why it’s worth asking your insurance agent to show you the actual numbers before you increase your deductible.

If raising your deductible saves you only a few dollars a month, you should consider whether those savings are worth taking on an additional $500 or so of financial responsibility when you have a claim.

Don’t choose a higher deductible based on the assumption that the premium savings will be significant. Look at the actual numbers for your policy.

How do you choose the right insurance deductible?

Instead of starting with the premium, start with your bank account.

Ask yourself one question:

If I had a covered loss tomorrow, could I comfortably pay my entire deductible without putting my finances under serious strain?

If you answered no, then your best option is to go with a lower deductible
If yes, a higher deductible might suit your needs best.

For example, if a $1,000 deductible would force you to put the expense on a credit card, sell something, or scramble to find the money, that’s an important warning sign.

A West Texas example

That’s especially important here in West Texas, because wind and hail deductibles usually aren’t a flat dollar amount. Instead, they’re a percentage of your home’s insured value, commonly 2%. On a $300,000 home, that’s a $6,000 deductible if hail damages your roof. It’s worth doing that math before a storm hits, not after. And we all know that West Texas storms can often come without warning.

One of our own Grimes members learned this firsthand when a Lubbock hailstorm sent hail straight through her bedroom window, tore holes in her siding, and knocked her patio door off its frame. Because it took time for an adjuster to assess the damage, her windows stayed boarded up for months.

Storms like that aren’t rare here, and roofs bear the brunt of it. Texas home roofs often age faster due to severe weather and heat. That’s why it’s worth thinking through your deductible before a storm and not during one. If a percentage-based deductible would catch you off guard, talk to your agent about whether a different deductible, or a higher savings cushion, makes more sense for you.

The right deductible isn’t necessarily the lowest or highest number. It’s the amount you can realistically afford when something goes wrong. Your deductible should reflect your financial situation, not what someone else is comfortable paying.

Curious if your policy is measuring up and protecting you where it matters? Read How to Tell if You’re Uninsured to learn where coverage gaps can happen.

Are insurance deductibles different for home, auto, and life insurance?

Depending on the type of insurance policy you have, your deductibles can work differently. Let’s break them down:

	Deductible Available?	What you should know
Auto Insurance	Yes	Comprehensive and collision coverages have separate deductibles
Home Insurance	Yes	Wind, hail, or other claims may have different deductibles
Life Insurance	No	The beneficiary files a claim and receives the benefit according to the policy terms

The takeaway: don’t assume every policy uses the same deductible. Before you file a claim, check your policy to see which deductible applies to which type of loss.

Curious how different types of insurance policies actually compare? Read Auto, Home, and Life Insurance Basics to learn how auto, home, and life insurance work and what they cover.

Grimes Insurance Can Help You Determine the Right Deductible

At the end of the day, the right deductible is the amount you could afford to pay out of pocket without creating a financial crisis.

A higher deductible may lower your premium, but you’re taking on more financial responsibility if you have a claim.
A lower deductible generally means paying more for your insurance, but you won’t have to come up with as much money after a covered loss.

Either option can be beneficial, but it all depends on your financial situation and comfort level.

Insurance is ultimately about managing financial risk. Your deductible is one of the biggest decisions you can make about how much of that risk you’re willing and able to handle yourself.

Before changing your deductible, ask your insurance agent to show you the actual premium difference. Then compare those savings with the additional amount you’d have to pay if you had a claim. That calculation can make all the difference for your deductible decision.

Now that you understand how deductibles affect what you pay after a claim, the next step is understanding whether your policy provides enough protection in the first place. Learn How to Tell if You’re Underinsured and which places coverage gaps can happen most often.

Or, if you’re interested in discussing your policy’s deductibles, contact our office to connect with an agent. At Grimes Insurance Agency, we value educating clients on the insurance basics, helping them feel confident about their policy’s terms and definitions.

How to Tell if You’re Underinsured

August 4, 2026/in Blog, Insurance Terms/by grimes

Ever felt like the ground beneath your feet was swept out from under you? That’s what hearing the words, “you’re not covered,” is like for many policyholders. Most people don’t discover they’re uninsured until they’re already filing a claim, which can quickly become a costly surprise.

With over 78 years of serving West Texas homeowners and drivers, Grimes Insurance has helped thousands of policyholders identify coverage gaps before they become costly claim surprises. One of the most common issues we see isn’t people without insurance, but people whose coverage quietly stopped matching their lives.

The good news is that underinsurance is usually preventable. By the end of this article, you will know:

How to tell if you’re uninsured
What factors contribute to underinsurance
What to do if you’re underinsured

What are the Biggest Signs You’re Underinsured?

Underinsurance looks different depending on what you’re trying to protect, but the warning signs usually fall into two categories:

Your home coverage no longer reflects what it would cost to rebuild or replace your belongings.
Your auto coverage no longer reflects today’s vehicle values or your financial situation.

Life changes like remodeling your home, buying a newer vehicle, adding a teen driver, or increasing your income can all create coverage gaps without you realizing it.

Let’s look at each one together.

How Can You Tell if Your Home is Underinsured?

The type of home you have and upgrades you’ve made to it are some of the biggest indicators of sufficient coverage. But first, it’s important to understand why this matters. Your answer? Rebuilding costs.

Rebuilding cost vs. market value

We’ve seen many underinsured homeowners confuse their rebuilding cost with market value… which are two completely different numbers.

Market value reflects what someone would pay for your home.
Rebuilding cost reflects how much it would cost to reconstruct your home after a total loss, based on current labor and material costs.

These costs change constantly, and selling your home is different than rebuilding it.

It’s also important to keep in mind that rebuilding a home in Lubbock isn’t priced the same as rebuilding one in Dallas or San Antonio. Whether your home is properly insured depends on more than just its value on Zillow!

A simple way to sanity-check your coverage is to compare your policy’s dwelling limit with today’s estimated rebuilding cost per square foot in your area. To determine your area’s rebuild costs, you can often find them online or by contacting your local construction company or contractor yourself. Using these numbers, you can plug them into a simple formula:

If those numbers aren’t even close, it’s time to review your policy.

Other signs your home might be outdated include:

Your personal property has changed

One of our favorite ways to explain personal property goes like so:

Imagine your home is Barbie’s Dream House (use your imagination!). Then, picture yourself flipping it upside down.

Everything that falls out is your personal property. Your furniture, electronics, clothing, and appliances not built into the home are all items to consider for insurance. If your home experienced a total loss, and replacing everything would cost significantly more than your policy allows, your contents coverage might need attention. Contact Grimes Insurance Agency to review your coverage with an agent.

You’ve renovated or added structures

Insurance companies don’t automatically know when you’ve made home updates.

Whether you’ve finished out a shop, added square footage, and finally remodeled the kitchen of your dreams– your insurance carrier needs to know about it. If you don’t tell your carrier, your policy may still reflect what your home looked like years ago.

If disaster struck and you filed a claim, your policy’s limits will only reflect your home’s original condition from when you bought it. Meaning, anything not covered by insurance will be paid out-of-pocket. We’ve seen homeowners invest tens of thousands of dollars into improvements, only to discover it’s not covered by their current insurance policy.

You’ve added solar panels

Many homeowners assume solar panels are automatically covered because they’re attached to the home. However, that’s not always true, especially in hail-prone areas like West Texas.

Some insurance policies include them in standard policies, while others require adding an endorsement. There are even some carriers that won’t insure homes with solar installations at all.

If you’ve gone solar and want to know how to protect your home’s newest addition, read Do Solar Panels Affect My Home Insurance? To learn more.

The bottom line: it pays (and saves) to discuss your home’s changes with your insurance carrier and agent.

How Can You Tell if Your Auto Insurance is Underinsured?

One of the most common questions we’ve heard is “how little car insurance can I get away with?”

If you lease or loan a vehicle, you’re required by your lender to purchase full coverage for your vehicle. This includes liability, comprehensive, and collision coverage. However, if you own your vehicle, the state of Texas only requires you to purchase minimum liability limits of 30/60/25.

That means:

$30,000 for injuries to one person
$60,000 for injuries per accident
$25,000 for property damage

If you want to understand exactly what separates minimum liability from full protection, read Liability vs Full Coverage Car Insurance Explained for a direct side-by-side comparison.

How Driving With Minimum Liability Can Make You Uninsured

While minimum liability might seem sufficient, it’s the biggest cause for uninsured drivers.

Why? Because realistically, very few vehicles on the road today are only worth $25,000.

Imagine driving down the loop, and you total someone’s $60,000 SUV. If your property damage limit is only $25,000, you’d personally owe the remaining $35,000 out of pocket.

And remember that $25,000 doesn’t cover just one vehicle. It also covers:

Other vehicles
Buildings
Fences
Mailboxes
Guardrails
Other property damaged in the accident

For many drivers, carrying only the state minimum leaves very little room for today’s repair and replacement costs.

What Happens if an Uninsured Driver Hits You?

Now, let’s put the shoe on the other foot. Even if you were to increase your own liability limits, another driver might not.

If someone with minimum coverage (or had no insurance at all) were to hit you, uninsured and underinsured motorist coverage could protect you from paying out of pocket for someone else’s lack of coverage.

Learn more about uninsured motorist coverage and how it can protect you in an accident:

What to Do if You’re Underinsured

Finding out you’re underinsured doesn’t necessarily mean you need an entirely new insurance policy. In many cases, a few updates to your existing coverage are enough to better protect your home, vehicles, and finances.

Here are the first steps to take:

Review Your Current Policies

Start by looking at your homeowners and auto policies. Review details such as:

Home	Auto
Your dwelling coverage	Your liability limits
Your personal property limits	Your deductibles
Your home’s replacement cost	The drivers (and their ages) listed on your policy

The goal is to understand what you have before deciding what needs to change. If you find your situation has changed and coverage is lacking, insurance endorsements can be helpful additions. Before discussing endorsements with your insurance agent, learn more about what insurance endorsements are and why they matter.

Think About What’s Changed Since You Bought Your Policy

Ask yourself whether anything in your life has changed, such as:

Getting married and combining households
Having children
Adding a permit or licensed teen driver to your household
Receiving a significant raise or building more assets
Renovating your home
Building a detached garage or workshop at your home
Purchasing expensive jewelry or collectibles

Any of these changes could mean your current coverage no longer reflects your actual risks.

Talk to Your Insurance Agent

If you think you may be underinsured, schedule a policy review. An experienced agent can help you compare your current coverage with your needs and explain where gaps may exist.

That doesn’t always mean increasing your limits. Sometimes it’s updating your home’s rebuild cost, adding endorsements, or adjusting limits to better match your current risks.

Review Your Coverage Regularly

Insurance isn’t something you should set up once and forget.

A good rule of thumb is to review your coverage every year or whenever you experience a major life change. Keeping your policy up to date is one of the easiest ways to avoid unpleasant surprises if you ever need to file a claim.

How Grimes Insurance Helps You Avoid Being Underinsured

Underinsurance is easy to miss because life changes, and your policy often doesn’t.

A home renovation, a new driver, or a newer vehicle can all create coverage gaps without you realizing it. The good news is that most of those gaps are easy to fix once you know they’re there.

At Grimes Insurance, we review your coverage based on where you are today, not when you first bought your policy. We’ll help you identify potential gaps and explain your options so you can make informed decisions.

If you’re wondering whether your coverage still fits your life, your next step is to learn how Grimes can help you build a personalized insurance policy around your specific needs.

Insurance Policy Lapses Explained

August 1, 2026/in Blog, Insurance Terms/by grimes

Executive Summary:

An insurance lapse is any period of time when your insurance policy is no longer active. Whether it’s caused by a missed premium payment, cancellation, or non-renewal. You’re uninsured and financially responsible for any claims that occur during this time. Insurance lapses tend to make future coverage more expensive and even limit your insurance provider options. This article explains what a lapse is, how it happens, and how to avoid it.

Does missing an insurance payment mean you’re immediately uninsured? What does having an insurance lapse actually mean?

If you’ve ever asked these questions, just know you’re not the only one who’s curious. Insurance terminology and timelines can be confusing… and costly.

After 78 years of helping West Texans with their insurance needs, we’ve seen firsthand how coverage misunderstandings can cost policyholders thousands of dollars. At Grimes Insurance, we prioritize helping clients understand the coverage basics and answer their questions.

In this article, you’ll learn exactly what an insurance lapse is, how it happens, and what you can do to avoid one.

What is an Insurance Policy Lapse?

An insurance lapse is any period of time when your insurance policy isn’t active, meaning you don’t have coverage during that time. We’ve seen coverage lapses that have lasted one day, six months, or even a year.

What causes an insurance policy lapse?

Insurance coverage lapses can occur for a combination of reasons, including:

Missing a premium payment (the most common)
Cancelling your policy
Policy non-renewal

Since it’s the most common, this article will focus more on missed payment scenarios. Curious if cancelling and a non-renewal are the same thing? Read more about the differences between a policy cancellation and non-renewal from the Texas Department of Insurance.

Will insurance lapse on a missed payment?

Life gets busy. Bills pile up, credit cards expire, bank accounts change, and reminders get forgotten about. We’ve seen all of these situations lead to an unexpected lapse in coverage.

Fortunately, insurance companies don’t typically cancel your policy the moment you miss your payment. Many carriers offer a grace period (usually between 10-20 days) before canceling your policy, but the length varies by insurer and state. However, not all insurance carriers have the same grace period standards… so take this information with a grain of salt!

If a payment is not made before the grace period ends, your insurance policy and coverage will lapse.

What Happens After My Insurance Policy Lapses?

Many people assume that if they pay the overdue premium a few days later, their coverage simply picks up where it left off. Unfortunately, that’s not always the case.

Like grace periods, insurance carriers have their own reinstatement rules.

Some carriers may allow your policy to be reinstated back to the cancellation date, creating no break in coverage. Others don’t.

Progressive, for example, reinstates coverage beginning the day after your payment is received. If your policy had been canceled on Monday and you paid on Wednesday, you’d have a two-day lapse in your coverage, even though your policy is active again.

What happens if damage occurs during a lapse?

Once your policy lapses, the biggest question becomes: What happens if something goes wrong before your coverage is active again?

Imagine your monthly premium went unpaid… and you back your car into the neighbor’s mailbox. Or maybe a pipe bursts at home and your kitchen is flooded.

If damage occurs while your insurance has lapsed, you’re responsible for paying the bill yourself.

Because insurance companies won’t cover losses that occurred while your policy was inactive, many require you to sign a no-loss statement before reinstating your coverage. This document confirms that no accident, theft, or property damage occurred during the lapse.

If a loss did occur during that time, keep in mind that:

The loss is uncovered by insurance (aka, you pay out of pocket)
Your premium rates will most likely increase
Your insurance risk profile will be affected
Your provider may require purchasing a new policy (depending on length of lapse)

Curious about what a policy lapse has to do with insurance risk? Read How Insurance Risk is Calculated to learn more.

What Happens If My Mortgage or Lender Requires Insurance?

If your home or vehicle is financed because of a lease or mortgage, your lender requires you to maintain insurance to protect the property to cover your loan. If your policy lapses, your lender may purchase force-placed insurance on your behalf.

Force-placed insurance protects your lender’s financial interest in the property, not yours. While it satisfies the lender’s requirement that the property be insured, it generally doesn’t provide the same protections as a standard homeowners or auto insurance policy. It also tends to be more expensive.

Think of force-placed insurance as coverage for your lender’s investment, not your financial well-being. It’s not a substitute for carrying your own insurance policy.

We’ve seen clients learn this lesson the hard way.

A policyholder’s homeowners insurance lapsed, and their mortgage company purchased force-placed insurance on the home. Because there was still an insurance policy tied to the property, the homeowner assumed they were fully covered.

Months later, their roof was damaged. When they filed a claim, the force-placed policy wasn’t designed to provide the same protection as a standard policy. The claim wasn’t covered the way they expected, and they ultimately had to pay for the roof repairs out of pocket before they could secure traditional homeowners insurance again.

It’s a costly reminder that even a short lapse in coverage can have long-lasting financial consequences.

How Do I Avoid an Insurance Policy Lapse?

All of this talk about losing coverage is scary, we know. Fortunately, preventing a lapse is usually much easier than dealing with the consequences afterward.

A few simple ways to stay covered include:

Set up automatic payments when possible (which could qualify you for a discounted premium!)
Don’t ignore (or wait for) calls or emails from your insurance carrier or agent about your policy status
Keep your payment information up to date (delete expired credit cards, update your address changes, etc.)
Read every payment reminder or cancellation notice you receive
If you’re unsure whether your policy is active, call your insurance agent directly.

Even if you’ve already experienced a lapse, don’t assume you can’t get coverage again. While your options may be more limited and premiums higher, there are still insurance providers willing to insure drivers and homeowners after a lapse. The sooner you speak with your insurance agent, the more options you’ll typically have.

How Can Working With Grimes Insurance Prevent a Policy Lapse?

An insurance lapse can happen to anyone. Life gets busy, payment dates are overlooked, and before you know it, you could be without coverage when you need it most. However, you’re not alone in sorting it all out.

At Grimes Insurance, our job doesn’t end once your policy is in place. Since 1948, our retention team has worked proactively to contact clients when their policy may be at risk. We’re in your corner when it comes to:

Reminding you about payment deadlines (on average, at least 30 days beforehand)
Avoiding unnecessary lapses in coverage
Understanding your coverage basics

While every insurance carrier has different reinstatement rules, our goal is to help you be proactive before you ever have to worry about unexpected coverage gaps.

Now that you know how policy lapses happen, what they affect, and how to avoid them, the best next step is making sure your own coverage is where it should be. Whether you want to check your policy status, catch up after a lapse, or just have questions, contact Grimes Insurance Agency to get back on track.

How is Insurance Risk Calculated?

July 30, 2026/in Blog, Insurance Terms/by grimes

Quick Answer: Insurance companies calculate risk by estimating how likely you are to file a claim and how expensive that claim could be. Factors like your home’s condition, driving history, location, and insurance score all influence how carriers evaluate your risk. While you cannot control every factor, understanding these details can help you make better insurance decisions and potentially improve your risk profile over time.

When you receive an insurance quote, it can feel like your premium number appears out of thin air.

Why does one home cost more to insure than another? Why can two drivers with similar vehicles receive completely different rates? Why does one insurance company accept a risk that another one denies?

The answer comes down to one thing: risk assessment.

For the past 78 years, Grimes Insurance has helped West Texas families and businesses understand the factors that affect their coverage options. From hail exposure and aging roofs to changing carrier requirements, we’ve helped policyholders navigate what influences their insurance risk.

In this article, you will learn:

What insurance risk actually means
How insurance companies evaluate homes, vehicles, and claims history
What factors can increase or decrease your risk
What steps you can take to improve your insurance risk profile

What is Insurance Risk?

Insurance risk is the possibility that a loss (aka, claim) will happen and the potential cost of that loss.

When an insurance company evaluates your risk, they are essentially asking themselves two questions:

How likely is this person, home, or vehicle to have a claim?
How expensive could that claim be?

Let’s look at two homes, for example.

A newer home with updated features, good maintenance, and no claims history may represent a different level of risk than an older home with visible damage and previous losses.

The same applies to auto insurance. A driver with multiple at-fault accidents represents a different risk than a driver with a clean driving record. Or a teenager driving a vehicle represents a different risk than an experienced driver operating the same car.

Insurance companies use this information to determine what they are willing to insure and what price makes sense based on that risk.

How Do Insurance Companies Evaluate My Risk?

Every insurance carrier has its own underwriting guidelines. While most of these guidelines overlap, each company tends to have a certain “appetite” for risk. This means different companies may look at the same home, driver, or situation and reach different conclusions.

These carrier appetites boil down to a common combination of factors when determining your risk. Depending on whether you’re insuring your home or vehicle, insurers review specific items.

How is my home insurance risk evaluated?

When insuring your home, insurers review information like your:

Home age and condition
Home construction type
Roof age and condition
Attractive nuisances (pools, trampolines, etc.)
Property features

How is my auto insurance risk evaluated?

When insuring your vehicle, insurers review information such as your:

Vehicle type (make, model, and year)
Driving habits
Gender, age, and marital status
Occupation

What additional details affect my insurance risk?

For both types of coverages, insurers also review specific details, like:

Location: Where do you live? Where do you drive?
Weather exposure: Are you located in an area with frequent storms, hail, or flooding?
Claims history and insurance score: How often have you filed claims?

Living in hail-prone areas like West Texas can influence how carriers evaluate risk. In our experience, many homeowners are surprised to learn that factors like roof age and previous hail claims can affect eligibility and coverage options. These factors can also affect premium pricing.

How does my claim history and insurance score affect me?

Claims history is one of the biggest pieces of the risk puzzle.

While insurance is designed to protect you during a loss, frequent or recent claims can affect your rates or your ability to qualify for certain coverages. Texas insurance carriers are also permitted to use credit-based insurance scores as a rating factor. A strong credit profile can meaningfully lower your risk, while a poor one can raise it.

Before purchasing insurance, you can review your claims history using a CLUE (Comprehensive Loss Underwriting Exchange) report. This report summarizes your previous insurance claims and is one of the main resources carriers use when evaluating your application.

If you’re wondering how insurers view your previous claims, this video explains how claims history can affect your home or auto coverage options:

What Can I Do to Lower My Insurance Risk?

Think about lowering your risk by showing insurance carriers that you are taking steps to prevent losses.

You can’t control every factor that affects your insurance risk, but you can improve your risk profile over time through maintenance, responsible habits, and proactive decisions. Let’s explore what this can look like:

How can I lower my home insurance risk?

Updating and maintaining your home’s exterior is one of the best ways to lower your risk.

Does your brick have discoloration? Are there cracks in your sidewalk or driveway? Do you have overhanging trees in your yard? If so, your next steps might include:

Repairing visible damage to your home, fencing, and concrete
Maintaining your roof
Trimming trees away from your roofline
Installing a fence around your swimming pool
Securing trampolines with safety nets and ground stakes

Many homeowners do not realize that preventative maintenance can influence how carriers view the overall condition of their property.

How can I lower my car insurance risk?

While personal demographics are an important factor for car insurance risk, they aren’t details you can necessarily change. However, you can improve your risk profile by taking extra care in your driving habits. Some examples include:

Maintaining a clean driving record
Participating in a telematics program to track good driving
Maintaining a strong credit history
Avoiding unnecessary claims when practical

While these changes don’t guarantee an immediate premium reduction, they can improve how insurance companies evaluate your risk over time.

How can talking with an agent lower my insurance risk?

Remember how insurance carriers often have appetites for risk? Your insurance agent can help you understand how those differences affect your options.

One of the best times to think about insurance is before making a purchase or major change. Whether you’re deciding between two homes, comparing vehicles, or considering renovations, speaking with your agent beforehand can help you understand how those decisions may affect your coverage options.

How Can Understanding Risk Help Me Make Better Insurance Decisions?

Insurance risk can feel complicated, but the basics are simple: insurance companies are trying to understand how likely you are to experience a loss and how costly that loss could be. Factors like your home’s condition, driving history, location, and insurance score help carriers make that decision.

If you’re frustrated by your insurance costs or unsure why your premium changed, understanding your risk is the first step toward making better decisions.

Your next step is to learn how your insurance risk may affect your coverage options. Read about how much home insurance costs in Lubbock to better understand what factors influence your premium.

If you still have questions about your personal risk profile, Grimes Insurance can help you review your coverage options and understand what steps may improve your situation.

What are Insurance Endorsements and Why Do They Matter?

July 25, 2026/in Blog, Insurance Terms/by grimes

Have you ever looked through your insurance policy and wondered what all those endorsements actually mean?

Or maybe you’ve asked yourself whether you can make your policy more specific.

If so, you’re not alone. Insurance policies are full of unfamiliar terms, and it’s rarely obvious which coverages are standard, which are optional, and whether you’re protected for the things that matter most.

Since 1948, Grimes Insurance Agency has helped West Texas families understand exactly what they’re covered for – and what’s worth adding.

In this guide, you’ll learn:

What insurance endorsements are
Why insurance companies add them
How endorsements can help customize your policy to better fit your life.

What is an endorsement?

An endorsement is a change or addition to your base insurance policy that either expands, limits, or clarifies your coverage. In a nutshell, it allows you to customize your coverage to your needs. Endorsements can also be referred to as an insurance rider or add-on.

It’s important to remember that endorsements can be added to a policy by the insurer (your carrier) or the insured (you).

Why would my insurance carrier add an endorsement to my policy?

Simple answer: because it’s required. Depending on your insurance provider and where you’re located, endorsements can vary. All insurance carriers licensed in Texas, for example, must comply with the Texas Department of Insurance’s endorsement standards.

Aside from the state requirements, however, every insurance carrier can build its own list of endorsements. Whether it’s Allstate, Germania, or another provider, endorsements are often different across companies.

Why would I need to add an endorsement to my policy?

Insurance policies are not one-size-fits-all. Since not all policies are the same, you might have some areas where you want extra protection.

For example, your home insurance policy might cover jewelry theft, but the set limit is $1,500. However, you own a highly valuable watch collection. If two of the $2,000 watches were stolen, the standard policy would only cover a maximum of $1,500, minus your deductible, leaving you responsible for the remaining amount.

Why Do Insurance Endorsements Exist?

Think of endorsements as taking your insurance policy to a tailor. You can purchase a standard policy off the rack, where it either fits you well or needs to be taken in (or let out) a couple of places for a better fit. The result is a unique insurance policy that fits you and your coverage needs like a glove.

What are the Types of Endorsements?

Some endorsements come “pre-sewn” into every policy the carrier sells, while others are custom alterations you request. Endorsements typically fall into two categories: standard/mandatory and enhanced/optional. Let’s look at the basics and define each type.

Standard/Mandatory	Optional/Enhanced
Included in policy	Added by request
Usually $0	Usually increases premium
Required by carrier/state	Based on your needs
Cannot usually remove	Can customize limits

What are Standard/Mandatory Endorsements?

These types of endorsements are the ones already built into your policy. This is either because they’ve been required by your state’s department of insurance, or they are specific to your insurance carrier. You can’t remove them, and in most cases, you’re not paying extra for them. They are simply part of doing business with that carrier in your state.

Remember our tailor metaphor? Sometimes the shop has a house rule that they automatically stitch a specific feature into every jacket, while you have to pay extra for it at another tailor across town.

A great example of this is sewer and water backup coverage. If a residential sewer main were to overflow, it could cause expensive damage within your home and stretch your home insurance policy thin.

Most traditional national carriers exclude this from their basic home insurance policies. If you want protection from sewer damage, you often have to purchase it as a separate coverage.

However, some companies (especially those specific to a particular region) can rewrite the rules. For instance, instead of making it an add-on, Germania Insurance automatically includes sewer and water backup coverages on its basic home policies up to your home’s total dwelling limit.

This is just one example of how endorsement options can vary between carriers. Remember that not all insurance providers and endorsements are exactly the same. If you’re interested in comparing your insurance endorsements, contact Grimes Insurance Agency to walk through your policy with an agent.

What are Enhanced/Optional Endorsements?

On the other hand, enhanced/optional endorsements are coverages you can choose to add or increase, based on what you actually own and how you live. This is where you can truly make your policy your own.

Depending on what your policy is insuring, some common examples include:

Home	Auto
Buried utility lines	Rideshare coverage
Equipment breakdown coverage	Roadside assistance
Scheduled personal property	Rental car reimbursement
Water backup coverage	Custom parts and equipment

If you’ve recently added something valuable to your home, keep expensive equipment on your property, or want greater coverage for your vehicle, it’s worth discussing endorsements with your insurance agent.

How Much Do Insurance Endorsements Cost?

Like endorsements, this answer can also vary.

Since they are part of the carrier’s base policy and not an add-on, standard/mandatory endorsements are typically included at no additional charge. If you ever see one of these itemized on your policy, don’t be surprised if it’s listed at $0.

However, if you were to enhance your coverage (aka, raise your premium, expand protection, etc.) or add additional protections, optional/enhanced endorsements are where costs come in. It’s important to note that not all optional endorsements are a flat add-on and often allow you to dial your coverage up or down to fit your budget needs.

Bringing back our examples from earlier, some carriers give you the option to:

Increase jewelry coverage limits OR
Lower water damage coverage

In other words, you often have some control over the tradeoff between cost and coverage when it comes to optional endorsements.

The best way to know exactly what something will add to your premium is to ask. Requesting a quote and discussing it with your insurance agent will help you spell out the numbers for your specific policy.

Are Insurance Endorsements Something You Need?

Remember that aside from standard/mandatory endorsements, additional coverages aren’t always necessary. A standard policy might provide you adequate coverage that doesn’t require further adjustment. However, the value of endorsements isn’t always obvious until the moment you need it.

Standard coverage might satisfy until a storm, a break-in, or a car accident hits. At that point, being fully covered or taking care of a gap yourself depends on whether your coverage accurately reflects what you own.

Whether you’re considering additional coverage or not, it’s worth having the conversation.

Grimes Insurance Can Help You Find the Right Coverage Fit

Insurance endorsements may seem like complicated policy language, but they’re really tools that help your coverage better match your life. Whether you need additional protections for valuable belongings or specific risks, endorsements allow you to customize your policy instead of relying on a one-size-fits-all approach.

Without reviewing your endorsements, you may not realize there are gaps in your coverage until after something unexpected happens. Taking the time to understand what your policy includes (and what it doesn’t) can help you feel more confident about your protection.

For 78 years, Grimes Insurance Agency has helped West Texas families navigate their insurance options and find coverage that fits their unique situations. If you’re unsure whether your current coverage fits your needs, your next step is to review your policy with an insurance professional. Read more about requesting a quote with Grimes Insurance Agency to see how our team can help you understand your options and make informed coverage decisions.