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When is Open Enrollment for Health Insurance in 2025?

August 17, 2025 by lambertagency

When Is Open Enrollment for Health Insurance in 2025?

If you’re considering health coverage for year 2025, or planning ahead for year 2026, one of the the most important windows of time to mark on your calendar is the open enrollment period. This is the period when individuals, families, and employers may enroll in or change their health insurance plans without requiring a “special qualifying event”. If you miss this window of time, you may end up stuck waiting until next year, unless you do qualify for a special enrollment period.

Here at The Lambert Agency, we’re able to help employers and employees understand all associated timelines and ensure nobody ends up missing out on their chance to secure coverage they need. Here’s what you need to know.

Important Dates for 2025 / 2026 Coverage

Marketplace (ACA / Exchange) Plans

For many states using the federal Health Insurance Marketplace (Healthcare.gov), here are the key dates to mark on your calendar:

Open Enrollment begins: November 1, 2025 (HealthCare.gov)
Deadlines for January 1, 2026 coverage:
• December 15, 2025 — last day to enroll or change plans if you want coverage to start January 1. (HealthCare.gov)
Open Enrollment ends: January 15, 2026 (HealthCare.gov)
If you enroll between December 16, 2025 and January 15, 2026, your coverage typically begins February 1, 2026 (HealthCare.gov)

Note: some states may run their own exchanges and may have different open enrollment windows (for instance, California’s ends January 31). (HealthMarkets)

Employer-Sponsored Health Insurance

If you healthcare coverage does come through your employer, your employer is the one who set the open enrollment dates, most commonly set sometimes in the fall season. Many companies will end up running open enrollment in the months of October or November, allowing coverage to begin on January 1st of the following year. (Fidelity)

For this reason, it’s critical for HR or benefits teams to fully communicate those dates clearly, as missing these specifics dates means the employees may not be able to make changes to their health insurance coverage outside of special qualifying events (unless permitted otherwise under said plan).

Special Enrollment Period (SEP)

Outside of the open enrollment window, one may still qualify to enroll or make changes if they experience a qualifying life event, such as:

Losing existing coverage (e.g. job-based plan ends)
Marriage, divorce, or legal separation
Addition of a child (birth, adoption, etc.)
Moving to a new area
Other events defined by the marketplace or your plan

These events will often trigger a 60-day window (before or after the event) to enroll via a SEP. (healthinsurance.org)

How Missing Open Enrollment Matters

If you don’t enroll during the open enrollment period or make changes during the open enrollment period and you do not qualify for SEP, you’ll likely have to wait until the next open enrollment period the following year. (healthinsurance.org)
For the healthcare marketplace, if you miss the December 15th deadline for January coverage, you may still enroll prior to January 15th, yet your plan will kick in on February 1st instead. (Centers for Medicare & Medicaid Services)
Automatically re-enrolling into your last year’s plan is common; however, it may not be optimal, especially if your health situation or costs have moderately or drastically changed. (Centers for Medicare & Medicaid Services)

Tips to Prepare (For Employers & Employees)

Communicate early & often
Begin to inform employees well in advance of the open enrollment period. It’s a good idea to utilize multiple channels to communicate these notices, such as email, meetings, text reminders, or printed guides placed around the office.
Offer decision support
Provide employees with benefits guides, side-by-side comparisons, and ample opportunities to ask any and all questions they may have. Additionally, one-on-one sessions will likely help.
Highlight deadlines clearly
Truly emphasize the December 15th deadline (for January 1st) and the January 15th deadline, and clarify the implications of enrolling post December 15th (i.e.: a February start date of coverage).
Encourage review, not just passive renewal
Even if someone happens to be auto-enrolled, you should still encourage them to review their plan options. This is especially true if their healthcare needs or finances have changed over the past year.
Train managers & HR teams
Ensure your internal management or HR team understands how the Marketplace plans and SEPs work so they can best inform employees.

Sample Timeline (2025–2026)

Date	Event
Nov 1, 2025	Marketplace open enrollment opens
Dec 15, 2025	Last day to enroll/change for Jan 1 coverage*
Jan 1, 2026	Coverage begins for those who enrolled by Dec 15
Jan 15, 2026	Open enrollment ends; last chance to enroll/change for Feb 1 coverage
Feb 1, 2026	Coverage begins for those enrolling between Dec 16 and Jan 15

* If you enroll after Dec 15 (but on or before Jan 15), your coverage generally starts Feb 1. (HealthCare.gov)

Contact The Lambert Agency Today for Your Open Enrollment Needs

Open enrollment is the annual window of time which bridges one health plan year to the next. For marketplace (ACA) plans, the primary period runs November 1, 2025 through January 15, 2026 in most states. Employer plans will have their own dates, typically running during the fall.

Here at The Lambert Agency, we’ve been able to help many employers navigate these open enrollment timelines, design and implement smooth enrollment processes, and communicate benefits in a concise and simplified way to drive engagement and utilization. If you’d like help preparing your organization for 2025 open enrollment (or 2026), we’re here to help every step of the way!

How to Explain Benefits to Employees So They Actually Use Them

August 15, 2025 by lambertagency Leave a Comment

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When you offer employee benefits to retain and attract top talent, you’re starting off on the right foot each and every time you hire a new employee. There’s a catch though: what if the top talent employee you just hired does not fully understand what’s available to them with your employee benefits package you’re offering or how it actually works? Those benefits will go unused and your initial investment into the employees benefits package will not have the full impact it could have. Here at The Lambert Agency, we’re able to help employers not only design and implement the best benefit programs available for their employees, but also communicate effectively and efficiently every step of the way so employees will be able to take full advantage of what’s being offered.

Why Communication Matters

Communication is key in any business or relationship, and employee benefits are no different. Many studies have shown that nearly 40% of employees do not fully understand what’s available to them with their employee benefits package. That means they’re missing out on valuable health, retirement, and supplemental programs which could improve their lives. Clear communication, when done right, is just as valuable as the employee benefits themselves.

5 Strategies to Explain Employee Benefits Clearly

1. Keep It Simple

Clear and simple communication is always best. Insurance and retirement related language can become complicated quickly. Through avoiding jargon and breaking down each employee benefit in plain English, you can provide a much clearer depiction of what the employee benefits package entails. An example of this is: instead of saying “high-deductible health insurance plan”, explain it as “a health insurance plan with lower monthly premium payments, but higher upfront costs if you happen to need medical care.” Here at The Lambert Agency, we’re able to provide employers with easy-to-read benefits guides for their employees to fully grasp what’s available to them.

2. Use Multiple Communication Channels

Don’t rely on just one meeting or one single email. Properly share information through:

Onboarding packets
Staff meetings
Email reminders
Company intranet or HR portals

Repetition in the process will assist in building understanding.

3. Highlight Real-Life Examples

Employees will grasp benefits and truly understand what’s available when they see how said benefits apply to everyday life. Examples of this could include:

How disability insurance replaces income during recovery.
How dental coverage reduces out-of-pocket costs for routine care.
How an HSA can be used for both today’s expenses and future medical needs.

The Lambert Agency is happy to provide case studies and scenarios to make abstract benefits real and easily understood.

4. Offer One-On-One Support

Yes, group benefit meetings can be very beneficial, yet employees will often appreciate private conversations where they can ask any and all personal questions in relation to their employee benefits package. When you choose to partner with The Lambert Agency, we will provide your team with access to licensed advisors who can walk your employees through their available options.

5. Keep Communication Ongoing

Employee benefits education should not be a “one and done” scenario. Regular reminders and meetings throughout the year will help keep employee benefits top of mind. Here at The Lambert Agency, we’ve helped plenty of businesses create ongoing communication calendars to keep employees properly engaged.

The Payoff: Higher Satisfaction & Retention

When employees truly understand and use their benefits, they’ll be able to:

Feel more valued by their employer
Experience lower stress about healthcare & finances
Are less likely to leave for a competitor

This means your company receives a stronger ROI on every dollar you spend on benefits.

Choose The Lambert Agency for Your Employee Benefits Needs Today

Offering great employee benefits is only half of the battle. Explaining said employee benefits effectively and efficiently is what will allow them to be truly valuable. Through simplified communication, relatability throughout policy selection, and ongoing support, you’re able to empower your employees to take full advantage of the employee benefits programs you provide. Here at The Lambert Agency, we make the employee benefits process easy, for both employers and employees. We design plans and communicate clearly to ensure your investment in employee benefits delivers the maximum possible return on investment.

Why Offering Great Benefits Helps Attract & Retain Top Talent

August 15, 2025 by lambertagency

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In our modern day, the job market is competitive for top performers and salary alone is sometimes not enough to win over top performers. Employees are not only looking for the right level of total compensation, but also for a total compensation package with excellent benefits to support not only their paycheck, but also their health, wellness, financial security, and future. For this reason, and many more, employee benefits packages have become one of the most powerful tools for not only recruitment, but also employee retention. Here at The Lambert Agency, we’re able to help employers design benefits programs to keep your team happy, engaged, and loyal to your company.

The Link Between Benefits & Recruitment

Benefits Differentiate You From Competitors

When candidates are comparing and contrasting multiple job offers, an excellent benefits package may be the determining factor for them when considering your company over other companies. The employee benefits package with better health coverage, retirement support, and wellness perks usually wins.

Younger Generations Value Holistic Benefits

Millennials and Gen-Z workers are typically more focused on employee benefits packages over other generations of employees. Health insurance, mental health support services, flexibility in work arrangements, and financial wellness programs all rank very high in Millennial and Gen-Z decision making when it comes to a job.

Benefits Build Trust from Day One

An excellent benefits package will often signal to potential employees that you actually care about your employees’ wellbeing, not just their overall productivity. This sets a great first impression for potential employees who are considering working for your company.

The Role of Benefits in Employee Retention

Improved Job Satisfaction

Employees who truly understand and utilize their employee benefits package will likely feel much more valued by their employer. When your employees feel supported, they’re more engaged and less likely to seek out employment elsewhere.

Reduced Turnover Costs

Replacing an employee may end up costing anywhere from 50% to 200% of their annual salary when you factor in all aspects of the onboarding and retention process. When you choose to invest in employee benefits, you’re able to reduce turnover, and subsequently reduce the significant costs which come with it.

Supports Long-Term Loyalty

Benefits such as retirement plans, health insurance, and employee assistance programs will show employees you’re committed to investing in their future. This support and loyalty to your employees is often reciprocated in the form of extended employee retention and productivity over the course of their employment.

Here at The Lambert Agency, we’ve been able to help many businesses add retention-focused programs such as 401(k) matching, supplemental life insurance, and even financial wellness programs.

The Benefits Employees Value Most

While every company’s workforce is certainly unique, some benefits will always consistently rank as the most attractive:

Health, Dental, and Vision Insurance
Retirement Savings Plans (401(k), IULs, etc.)
Paid Time Off & Flexible Scheduling
Mental Health & Wellness Programs
Family Benefits (parental leave, childcare support)
Voluntary Benefits (accident, critical illness, pet insurance)

How to Maximize the Impact of Your Benefits

Tailor Benefits to Your Workforce: Survey your employees to learn what matters most to them
Always Communicate Clearly: Excellent employee benefits only work if employees understand how to actually use them
Review Employee Benefits Regularly: Needs evolve over time, and so should your employee benefits

Choose the Right Benefits for Your Business to Attract & Retain Top Talent

Providing a great employee benefits package is not just a perk for your employees, it’s a very powerful way to attract the best people to your company and retain them for many years to come. In today’s market, it’s important to invest in a thoughtful employee benefits package to improve your business. Here at The Lambert Agency, we specialize in designing benefits packages which balance cost with overall impact, resulting in true return on investment. Feel free to contact us using the form below and we’ll be sure to respond to your message as soon as possible. We look forward to hearing from you soon.

The Most Overlooked Employee Benefits That Could Save You Money

August 15, 2025 by lambertagency

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Oftentimes, when businesses think of employee benefits, they’ll think of health insurance and retirement plans. While these are certainly essential when offering employee benefits, there are other overlooked employee benefits every company should consider implementing to save both employers and employees money. Here at The Lambert Agency, we’re able to help companies uncover these valuable, hidden opportunities to build out stronger benefit programs without having to break the budget.

Preventive Wellness Programs

Simple wellness initiatives such as biometric screening, smoking cessation programs, or covering gym membership costs can greatly reduce long-term healthcare costs. A healthier employee means lower claims, fewer sick days, and overall higher productivity.

Why it saves money: Prevention always costs less than the actual treatment of an issue, and insurance carriers will often offer a variety of credits for companies with wellness programs in place for their employees.

Voluntary Benefits

Many employers believe when they add extra benefits to their employee benefits package, it will increase costs. In reality, voluntary benefits such as accident, critical illness, hospital indemnity, or pet insurance are typically employee-paid, with very little or no costs to the company.

Why it saves money: Employees are able to gain access to preferred group pricing, while employers enhance their benefit package at minimal expense.

Employee Assistance Programs (EAPs)

EAPs are great for offering confidential counseling, legal advice, financial planning, and more. They’re typically low-cost add-ons which can have a profoundly positive impact.

Why it saves money: Your employees may be dealing with stress, legal issues, or financial strain. This will often lead to reduced productivity. EAPs help solve problems before they end up becoming workplace challenges.

Telehealth Services

Virtual doctor visits provide an added level of convenience for employees and will reduce unnecessary ER or urgent care trips.

Why it saves money: Telehealth is able to lower claim costs for employers and reduces out-of-pocket costs for employees. At The Lambert Agency, we often recommend carriers that bundle telehealth into their health plans to provide this extra service as a built-in add-on.

Flexible Spending Accounts (FSAs) & Health Savings Accounts (HSAs)

These accounts are great for letting employees set aside pre-tax contributions for healthcare expenses. Employers will benefit too, since the employee contributions will subsequently reduce payroll taxes.

Why it saves money: Employees save on taxes, and employers save 7.65% in payroll taxes on every dollar contributed.

Disability Insurance

Short-term and long-term disability coverage is an often overlooked employee benefit, but it protects employees’ income if they cannot work due to illness or injury.

Why it saves money: Without this level of coverage, employees may turn to workers’ comp or leave programs, both of which can be very costly for employers. Disability benefits are relatively affordable and provide the added peace of mind.

Financial Wellness Programs

Financial wellness workshops can be a great way to encourage your employees to practice healthy financial habits such as budgeting, debt management, or retirement planning; all of which can make a huge difference for your employees’ financial futures.

Why it saves money: Financially healthy employees are often much less stressed, more productive, and less likely to look for another job elsewhere.

Enhance Your Business with Employee Benefits to Help You Stand Out from Your Competitors

Just because you offer excellent employee benefits packages does not mean you have to spend an excessive amount of money on said packages. Through adding often overlooked programs such as EAPs, telehealth, voluntary benefits, and financial wellness tools, businesses just like yours are able to save money, improve employee wellbeing, and strengthen employee retention.

Here at The Lambert Agency, we’re the specialists in designing employee benefit packages to maximize impact without having to overspend. We’ll be happy to help you identify the hidden opportunities to save you money while at the same time help you stand out from the competition. Feel free to contact us using the form below. We’ll be sure to respond to your message as soon as possible. We look forward to hearing from you soon!

How to Maximize the Value of Your Employee Benefits Package

August 15, 2025 by lambertagency

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Offering employee benefits is not only an investment in your workforce, but it’s also an investment in the long-term success of your business. Many companies will end up not receiving the full possible return of their investment because employees either do not understand or do not fully take advantage of the benefits available to them at your company. Here at The Lambert Agency, we’re able to help employers effectively and efficiently design and properly communicate their employee benefit programs so the employees actually use said benefits on a regular basis, and you as the employer see the benefit in employee productivity and improved morale.

Why Employee Benefits Utilization Matters

A competitive employee benefits package may promote the following:

Attract top talent in an otherwise crowded job market
Improve employee retention rates through making your employees feel valued and part of the team
Boost productivity by reducing overall stress around health and finances

If employees are not aware of the options available to them, or they don’t understand the employee benefits package, those benefits will often be underutilized, and your company misses out on maximizing their full potential.

5 Ways to Maximize the Value of Your Benefits Package

Survey Employees Regularly

Would you like to know the best way to determine if employee benefits packages are valuable to your organization? Simply ask your employees. A simplified, short survey can truly help you identify which benefits employees use the most, which benefits they use the least, and what they would like to have added to the employee benefits package in the future. Here at The Lambert Agency, we’re able to help employers fully utilize this feedback to best restructure plans for the maximum benefit possible.

Offer a Mix of Core & Voluntary Benefits

Not all of your employees need the exact same benefits. When you offer a balance of the core benefits such as health insurance, dental insurance, vision insurance, and retirement benefits paired with voluntary benefits such as accidental death and dismemberment coverage, critical illness coverage, pet insurance, etc…; you’ll often find your employees will choose what matters most to them on a customized basis. Voluntary benefits can be employee paid as well, so the employees who choose to use the voluntary benefits at a group price can do so without adding additional costs to the company.

Communicate Benefits Clearly & Often

Employees will need simplified explanations without all of the extra insurance jargon. Instead of simply handing out a packet of information once per year, emphasize and explain the available benefits to your employees with email reminders, “lunch-and-learns”, and employee portals to access and update information. The Lambert Agency can assist with this process to best guide you and your employees on benefits optimization processes.

Highlight Real-Life Scenarios

Demonstrate to employees how their benefits package will actually work in practice. Examples of this may include:

“How disability insurance can replace income during recovery”
“How an HSA saves money on out-of-pocket medical costs”
“How an EAP offers free counseling during stressful times”

When you make benefits truly relatable to your employees, it helps them see the true value in the employee benefits packages.

Review & Adjust Annually

Your workforce will change over time, and your employee benefits packages should change as well. A younger workforce may choose to prioritize employee benefit options such as student loan repayment assistance, while at the same time, an older workforce may prioritize retirement contribution matching and enhanced health benefits. Here at The Lambert Agency, we’re happy to conduct annual reviews to better ensure your employee benefits package evolves with your team’s wants and needs.

The True ROI of Employee Benefits

When employees actually understand and utilize their employee benefits, businesses will often see:

Lower turnover costs
Higher employee satisfaction
Fewer absences due to improved health and wellness
Stronger recruitment with a more competitive offer

Improve Your Business Performance Today with The Lambert Agency

Employee benefits packages should not be looked at merely as an expense, they should be viewed as a strategic investment into the success of your business performance. When you properly survey your employees, offer a variety of employee benefits, clearly communicate the perks of said benefits, and review on a regular basis; you’re able to maximize the value and ROI of your employee benefits packages with ease. Here at The Lambert Agency, we are able to create employee benefits programs which actually deliver results. We’ll assist you in gaining the most out of your employee benefits investment, while simultaneously producing ROI. Feel free to contact us with any questions you may have and we look forward to working with you soon.

What to Do After a Car Accident to Protect Your Insurance Claim

August 15, 2025 by lambertagency Leave a Comment

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By The Lambert Agency | Austin, Texas

Being involved in a car accident, whether it’s a mere minor fender-bender, or a very serious roll-over accident, can be very stressful. In the immediate moments that follow the car accident, there are certain actions which should be taken which will likely make a major difference in protecting your insurance claim and also ensuring you receive the right level of coverage you’re entitled to. Here at The Lambert Agency, we’ve seen way too many Texans lose out on rightful compensation, simply due to mistakes made after the initial car accident. Here’s what you should do immediately after a car accident to protect both yourself and your insurance claim.

Make Safety Your First Priority

Safety is paramount in nearly every accident type, but it’s especially important after a car accident. Try your best to move your vehicle to a safe location if it’s still operable. If it’s not, relocate yourself to a safe spot while you await the arrival of police, fire, and EMTs. Call 911 if anyone is hurt or if there’s significant damage to either car(s) or surrounding property. Even if the accident seems to be a minor accident, being checked out by a trained medical professional is very important. They may be able to see telltale signs of something wrong and recommend a trip to the hospital for further monitoring. Some injuries will take hours or even several days to show up.

Contact Law Enforcement

You should always call the police to visit the crash scene, even for smaller accidents. A police report will provide you with official documentation and records of what happened. This information can be critical for when filing your initial insurance claim. Always ensure to write down the responding officer’s name, badge number, and the report number prior to leaving the scene.

Document Everything

The more information you collect, the better protected you are later on down the road.
Here’s what you should always try to document:

Clear photos of any vehicle damage, license plates, the scene, and any and all visible injuries
Names, phone numbers, and insurance details for all parties involved
Contact information for witnesses, if any involved

If you’re too shaken or injured to take notes, use your phone’s voice memo app to record any and all details while they’re still fresh in your mind.

Avoid Admitting Fault

Emotions may certainly run high after the initial accident, but you should try to resist the urge to apologize or make any statements which could be misinterpreted as admitting fault, as this could be used against you in future proceedings. Even simple statements where you say “I didn’t see you there…” could hurt your case later on. Allow the investigation and insurance adjusters to properly determine responsibility.

Notify Your Insurance Company Promptly

Texas insurance policies require you to always report accidents within a “reasonable timeframe”. Waiting too long may lead to an inevitable denial in claim or a delay in processing. When you contact your insurance company, always stick to the facts of the situation, and avoid speculating about fault or damage costs.

Keep a Record of All Communication

Create a simple folder which is easily accessible and can store digital files for your claim. Add copies of the police report, medical bills, repair estimates, and correspondence with your insurer. Additionally, any notes from phone calls should be accurately recorded as well. Organization is crucial when it comes to having your claim processed quickly and accurately.

Get Professional Guidance Before Accepting a Settlement

Insurance companies may try to offer a quicker payout to close your case expeditiously. With this being said, the first initial offer may not truly reflect the full value of your damages. This is especially true if medical treatment or vehicle repairs are ongoing. Prior to accepting any settlement from an insurance company, you’ll want to speak with an experienced insurance professional or legal professional who can better help you understand the process and ensure you’re being treated fairly.

Choose the Right Coverage for the Future

The best way to properly protect your claim after an accident occurs is to have the right level of coverage with your insurance policy before an accident actually happens. Here at The Lambert Agency, we assist drivers throughout the greater Austin, Texas and Central Texas region find the most comprehensive and affordable auto insurance coverage possible, all designed to protect you in real-life scenarios, not just on paper.

Contact The Lambert Agency Today to Learn More About How We Can Help

Accidents can be truly chaotic, yet when you take proactive, informed steps after an accident occurs, it can truly make a world of difference. Protecting yourself, documenting all aspects of the accident thoroughly, and not rushing into any immediate settlements without fully understanding your rights can help you better protect your insurance claim. If you have been recently involved in a car accident and need help navigating your insurance claim or reviewing your coverage, reach out to The Lambert Agency today. Our Austin-based team is always here to guide you through each step of the process and ensure you’re fully protected. We look forward to hearing from you soon.

5 Common Auto Insurance Myths Debunked

August 15, 2025 by lambertagency

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By The Lambert Agency | Austin, Texas

When it comes to purchasing auto insurance, misinformation and straight up incorrect information is easily spread. Whether it’s social media advice from “insurance gurus” to well-meaning family or friends regurgitating outdated rules surrounding auto insurance. It’s easy to make a decision based on an auto insurance myth which could actually end up costing you money, or leaving you in a position where you’re underinsured.

Here at The Lambert Agency in Austin, Texas, we hear many of these common misconceptions all of the time. In this post, we’re setting everything straight with five of the most common auto insurance myths purported across society, and the truth behind them.

Myth #1: “Your Insurance Covers Everything After an Accident”

The Truth: Auto insurance is not a one-size-fits-all solution. Your auto insurance coverage truly depends entirely on your specific policy. An example of this is, you only carry liability insurance (the Texas minimum), it covers any damages to other vehicles and property, yet not your own. To fully protect your car, you need collision coverage or comprehensive coverage.

Many Texans will discover this fact the hard way, post-accident. For this reason, we always encourage our clients to fully review their auto insurance coverage annually and ensure it actually matches up with real-world needs, not just the bare minimum, legally allowed coverage.

Myth #2: “Red Cars Cost More to Insure”

The Truth: It’s often rumored that flashy cars, or red cars will be assigned higher premiums with their auto insurance. The truth is that auto insurance companies do not care about the color of the vehicle itself. What actually matters is the make of the car, the model of the car, the year of the car, the engine’s size, estimated repair costs should something fall into disrepair, and national theft rates of the specific vehicle being insured.

If your auto insurance premiums do seem to be higher than you anticipated, your car’s color is not to blame. Your vehicle’s performance rating, your individual driving record, and your total claim history with previous insurers are the likely cause of higher auto insurance premiums.

Myth #3: “Your Insurance Follows You, Not Your Car”

The Truth: In many cases, insurance will follow the vehicle, not the driver. This means that if someone borrows your car and is involved in an accident, your insurance is more often than not the one which will kick in first.

As with anything, there are exceptions to this rule, especially when it comes to alternative types of driving such as rideshare driving, rental cars, or commercial vehicle use. Prior to letting someone else drive your car, it’s always the smart decision to double-check your auto insurance policy’s “permissive use” clause embedded within your auto insurance policy. Or, feel free to give us a call at The Lambert Agency to have us review your auto insurance policy and provide guidance.

Myth #4: “Older Cars Don’t Need Comprehensive Coverage”

The Truth: While older vehicles may not need the fullest amount of coverage, the decision on whether or not comprehensive coverage should be applied should be based on your older car’s value, not its age alone. Comprehensive coverage will cover acts of theft, vandalism, flooding, and other non-collision incidents which can still occur, regardless of the age of your car.

If replacing your older car would create a financial hardship, electing to choose comprehensive and collision coverage would likely be worth every cent.

Myth #5: “Minimum Coverage Is Enough in Texas”

The Truth:

Texas law requires drivers to maintain a minimum level of liability coverage at 30/60/25 ($30,000 per injured person, $60,000 per accident, and $25,000 for property damage). However, this is often not enough coverage in most scenarios. A single accident involving multiple parties can easily exceed those state-required minimum limits, leaving you holding the responsibility for the rest of the associated costs.

For many Austin, Texas-based drivers, we recommend increasing your liability coverage to add further protection and adding an uninsured/underinsured motorist protection rider to your policy for additional peace of mind.

Protect Yourself with Facts, Not Myths

When you’re able to understand how auto insurance actually works, it can save you time, reduce your stress, and save you money. At The Lambert Agency, we take great pride in helping Texans make the most informed, confident decisions possible when it comes to selecting their auto insurance coverage.

Whether you’re shopping for a new auto insurance policy, wanting to review your current auto insurance policy, or you just need an honest answer regarding what’s actually covered and what’s not covered with your policy; we’re here to help.

Get a Free Auto Insurance Review Today from The Lambert Agency

Your auto insurance coverage should work for you, not against you. Start having your auto insurance policy provide the right level of coverage today by contacting The Lambert Agency today to schedule a complimentary, no-obligation auto insurance policy review. We’ll be able to help you uncover any and all savings opportunities, correct any outstanding coverage gaps, and ensure you’re fully protected on Texas roads. We look forward to working with you soon and we’re eager to begin helping you navigate the myths and truths of auto insurance coverage in Austin, Texas.

How Your Credit Score Impacts Your Car Insurance Rates

August 15, 2025 by lambertagency

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By The Lambert Agency | Austin, Texas

When many people think about what influences their car insurance rates, they’ll often picture things such as their driving history, age, or the type of car they drive. One fact which may often surprise drivers is how much their credit score may end up influencing the price of their premiums.

Here at The Lambert Agency, we always believe in transparency, first and foremost. In this post, we’ll be breaking down exactly how your credit score may play a role in your car insurance rates, why it matters in the state of Texas, and what you can do to keep your premium costs as low as possible.

Why Insurance Companies Look at Credit Scores

Insurance companies do not actually check your credit report the same way lenders will check your credit report. Instead, insurance companies will utilize what’s known as an insurance-based credit score.

The specific score helps insurance companies predict how likely you may be to file a claim. Research has shown that people with higher credit scores will tend to file fewer insurance claims. When those people with higher credit scores do file a claim, it’s often less costly than those with lower than average credit scores.

Through these methods, insurers will use credit profile information as one of several factors to set their car insurance premium rates fairly and pre-determine overall risk profiles.

How Your Credit Score May Impact Your Auto Insurance Premium

In most cases, the better your credit score, the lower your car insurance premiums will be. Here’s a simplified breakdown of what that may end up looking like:

Excellent credit (750+): You may receive the best available rates
Good credit (700–749): You’ll still qualify for favorable rates with many carriers
Fair credit (650–699): Your premium may be moderately higher, depending on included factors as well
Poor credit (<650): You may end up paying significantly more over time, sometimes hundreds of additional dollars per year

This difference in premium costs can certainly add up quickly, especially for families with multiple vehicles under the same insurance policy.

Is It Legal in Texas to Use Credit Scores for Insurance?

Yes. Texas is one of many states which allows insurers to use credit-based insurance scores as a factor in calculating the rate of premium. With this being said, insurers cannot use credit scores as the only reason to deny, cancel, or non-renew your auto insurance policy.

Insurers must also consider other key factors such as your driving record, insurance claims history, vehicle type, and how many miles per year you drive on average.

How to Improve Your Credit Score, and Lower Your Rates

The good news? You do have control over your credit score. Even the smallest of improvements can end up resulting in better insurance rates over time.

Here are a few ways to begin improving your credit score and subsequently lowering your auto insurance rates:

Pay your bills on time: Late payments will likely have a large impact on your credit score
Keep balances low: Try to use less than 30% of your available credit at any given time to demonstrate to creditors you’re not overextending yourself financially
Limit hard inquiries: Avoid applying for multiple new credit accounts, as this could end up temporarily lowering your score; as multiple hard inquiries are viewed as a possible risky credit profile
Check your credit report: Review your credit report regularly for any errors which could be hurting your score
Build consistency: Credit improvement does take time, yet insurers reward consistency and stability when it comes to improving your credit score

If your credit has actually improved since your last policy issuance, it’s certainly worth exploring new policy adjustments and also having your agent review your rates. You very well could be eligible for lower car insurance premiums.

Other Factors May Influence Car Insurance Costs

While credit definitely plays an important role in calculating insurance costs, it’s only one piece when factoring the equation. Insurers will also consider:

Driving record and accident history
Age and experience behind the wheel
Type of vehicle and repair costs
Coverage limits and deductibles
Where you reside (urban vs. rural ZIP codes in Texas)

Here at The Lambert Agency, we work with a large array of carriers to compare and contrast these factors side-by-side, and determine the best overall value for your unique situation.

Let Us Help You Receive a Better Auto Insurance Rate Today

Your credit score is not exclusively related to borrowing power, it’s also an important part of your overall financial picture; including your car insurance costs. Through gaining a greater understanding of how your credit score is used and taking the right steps to improve it, you may be able to save hundreds or thousands of dollars per year.

If you’re curious about how your credit score may end up impacting your current premium or you would like to explore better coverage options, you’ll want to reach out to us at The Lambert Agency. We’re here to help!

Get a Free Auto Insurance Quote in Austin, TX

You do not have to pay more than you have to. By contacting The Lambert Agency today, you can request your free, no-obligation quote. We’ll thoroughly review your auto insurance policy, check for any and all discounts, and help you find the right level of coverage which fits into your needs, and your budget.