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It Pays to Bundle Your North Carolina Insurance

National Insurance Companies are beginning to ‘strongly encourage’ North Carolina customers to bundle their insurance needs, or face the possibility that they may be dropped. Most insurance companies are no longer writing just homeowners policies in North Carolina. To entice NC homeowners into purchasing policies, rates have been decreasing for years.

The losses suffered by insurance companies for these discounts has hit an all time high. To combat the losses, insurance companies are increasing their rates or getting rid of discounts. Even though there is that possibility that bundling may be a requirement in the future, there are many reasons it pays to do it.

1. Cost savings. Often you will find reduced premiums when you bundle, up to 30% for most people. Insurance companies offer a discounted rate for automobile insurance when you allow them to insure your home.

2. Efficient. You will only have to deal with one insurance company and one independent Agent. Having one independent Agent handle all of your needs is efficient.

3. Better protection and coverage. One independent Agent can make sure all of your assets are well protected. An informed Agent will be able to help you properly insure your home and automobiles.

4. Strength in numbers. Having bundled insurance will allow one independent Agent to help you if several of your assets are damaged in one incident.

5. Personal touch and understanding. Having a personal relationship with your independent Agent makes a huge difference in service. When you have a need, won’t you prefer to speak to someone who knows you and understands all of your assets? Bundling your insurance needs is easy and practical.

Contact us today at 704-684-0082 for help bundling all of your insurance needs or complete our online quote forms.

Auto Insurance: What is Comprehensive & Collision Coverage?

Comprehensive coverage pays for loss or damage to your vehicle caused by fire, theft, vandalism, hail, windstorm, riot, falling objects, flood, collision with an animal, and more. Your policy contract outlines the specific events that are covered.

Each Comprehensive claim is subject to a deductible (the amount you will pay out of pocket). You should choose a deductible that meets your financial needs; the higher the deductible, the lower the cost for carrying for this coverage.

Collision coverage pays for accidental damage to your vehicle caused by upset or collision with another vehicle or stationary object.

Each Collision claim is subject to a deductible (the amount you will pay out of pocket). You should choose a deductible that meets your financial needs; the higher the deductible, the lower the cost for carrying this coverage.


Do I have to carry both comprehensive and collision?

If you are financing or leasing your vehicle, then most likely the answer is yes. Most companies with a financial interest in your vehicle require you to carry both comprehensive and collision coverage, but you should refer to your lease or finance agreement to be sure.

Although Comprehensive and Collision coverage are frequently written together, it may be possible for you to carry either coverage by itself.

Consent to Rate Letter -North Carolina

Insurance rates in North Carolina can be confusing, especially when working with an online company. Using an independent insurance agent can help in navigating your way through these tough times in the insurance industry. As claims rise and underfunding prevails, the insurance companies are looking for new ways to increase their rates outside the scope of what is regulated by the state.

Each state is different in how it determines its rates. In North Carolina, for example, the insurance rates are set by the North Carolina Rate Bureau. The Bureau tells the insurance companies the maximum rates they can charge consumers for home and auto policies. Your insurance company can decide they want to charge you a higher rate depending on several factors. But, they can’t charge this additional rate without your consent.

Consent to Rate Letter

That’s where the “Consent to Rate” letter comes into play. If the insurance company deems you a high risk, a “Consent to Rate”letter will be mailed to you. The letter will basically ask you to give the insurance company permission to charge you rates on your policy that exceed the state maximums. When you sign and return this letter you are essentially giving the insurance company your permission to be charged rates higher than those established by your insurance commissioner. This letter can be held in your file until the insurance company deems it necessary to use.

Why the Higher Rates?

Why would your insurance company ask to charge you a higher rate? There are a few factors they consider before mailing the Consent to Rate letter. Insurance companies are singling out high risk insurers for numerous reasons:

-Your home is located in a storm area susceptible to tropical storm surges or hurricanes.

-Your insurance company deems you high risk because of numerous claims

-Some insurance companies are looking at your credit score to determine their risk in insuring you

Why do I pay for Uninsured and Underinsured Motorists coverage?

Over the past few years, North Carolina auto insurance rules have changed in regards to Uninsured and Underinsured Motorists coverage. While it used to be an optional coverage, it is now mandatory. A lot of people may wonder why it is an important coverage to have. Simply put, it will provide you with better protection in the event that you are involved in an accident with someone who does not have enough insurance to cover the claim.

A prime example of a claim that would require Uninsured and Underinsured Motorists coverage would be a hit and run. Even if you see the person drive off and you report it to the police with vivid details of the vehicle they may never catch who hit you. Without having any information on the other driver, you will have to pay for your own damages and expenses which could run into a lot of money out of your pocket. That is where your Uninsured and Underinsured Motorists coverage will come into play.

Unfortunately, even though there is a law in place a lot of people out there on the road do not carry insurance or they do not carry more than the minimum requirements. The minimum will only cover partial damages and most likely would not pay enough if they were involved in an accident. That is one of the reasons people tend to flee accident scenes.

To make up for other people’s lack of insurance, your policy includes coverage for those times when you are involved in an accident you have no control over. Hopefully it never happens to you, but if it does you can rest assured that your Uninsured and Underinsured Motorists coverage will have your back. Call our office with any questions you may have about your current auto insurance policy.

Am I covered if I drive someone else’s car?

Generally, your auto insurance policy provides coverage while driving someone else’s car if:

• you have the vehicle owner’s permission to use the vehicle;
• you use the vehicle for the purpose which the owner gave you permission; and
• you do not regularly use the vehicle.

If covered, your policy’s specific coverage, limits and deductibles would apply.

Typically, the vehicle owner’s insurance would apply first in the event of an accident.  However, in certain circumstances the coverage provided by your own insurance policy could also apply. This is known as secondary or excess coverage.

5 Questions to Ask Yourself Before Dropping Full Coverage?

Typically I’d be reminding you how important high liability limits are to protect you if you cause an accident that injures somebody. However, this is all about you, what you’re covered for, and what’s best for you financially when it comes to coverage.

Normally you may hear nothing but “increase your insurance coverage!” from insurance professionals, but there are actually times you need to scale it back.

When would that be? Usually when your car is old. This doesn’t mean you don’t love your car — plenty of people drive their cars until they no longer run. But old cars can be costly if you continue carrying full coverage. With older vehicles, there’s a good chance the premiums you pay are more than the value of the car.

Sometimes insurers will tell you this, either out of good faith or they’ll just outright refuse to extend full coverage. You shouldn’t wait on your insurer to tell you when enough is enough though — to ensure you’re getting the most bang for your buck, you need to figure out when it’s time to increase coverage, downgrade it, and make other needed changes. So what should you look for? Here are five questions to ask yourself when trying to decide if it’s in your best interest to keep full coverage.

What am I giving up?
If you decide to drop full coverage, understand what won’t be covered. When people refer to full coverage, what they’re really talking about is comprehensive, collision, and liability on one policy. Liability protects another person and their property if you cause an accident. Collision coverage would kick in in situations where your car is damaged in that same accident or in single-car accidents (like hitting a telephone pole). Comprehensive generally covers everything else that isn’t the result of a crash. If hail cracks your windshield or dents your hood, comprehensive covers it. If vagrant teens spray paint your car on Halloween, comprehensive will cover it.

Note this though — full coverage only refers to comprehensive and collision coverage in addition to liability. Full coverage does not automatically include extras like towing and labor, roadside assistance, rental car coverage, or other optional add-ons. If you call an insurer right now and ask for full coverage with state minimum liability limits, you’re going to get a policy with bodily injury and property damage liability, comprehensive coverage, and collision coverage — that’s all. With most insurers, you’re not even eligible for those extra coverage options unless you have “full coverage.”

Thus, “full coverage” isn’t as “full” as you may believe it to be, and when full coverage is removed, your policy will be pretty empty and only have liability coverage. That means absolutely no coverage for your vehicle at all. In addition to comprehensive and collision coverage, if you’re a fan of perks like roadside assistance, keeping full coverage may be worth it to you — just ensure you can’t get roadside assistance cheaper elsewhere. Ask yourself what’s holding you back from dropping full coverage and what you need most. The only time an insurer would pay to fix your car or ‘replace’ it is if someone else causes an accident. Then their liability coverage would cover your car.

Do I owe on the car or is there a lienholder?
One of the first things to figure out is if you’re even allowed to drop comprehensive and collision coverage. Often only seen in the case of newer vehicles that are financed, banks and lienholders will usually request that the loan owner carry full coverage until the loan terms are satisfied (until the car is paid for or until the lien is released). However, just because a car is old doesn’t mean it’s owned straight-out. If you still owe on your car, this is an easy decision because there’s a 99% chance that you don’t have a decision to make. You’re required to have comprehensive and collision on any car you still make payments on or that you’ve used as collateral for any kind of loan. As soon as you pay your car off or have satisfied the requirements set forth by a lienholder, then you can consider dropping full coverage.

What’s the value of my car?
Establish the value of your car to see if it’s worth it to keep full coverage or not. A car is not a fine wine — it only depreciates with age (antique and collector vehicles excluded). As it gets older, the value goes down even if it’s been well cared for.

So the value to look for?  Use sources like Kelley Blue Book and Black Book and N.A.D.A. Guides to determine value. If you can’t find your car or believe the value is different than the listed price, you can get it appraised, but usually you can avoid that expense by being honest with yourself about your car’s condition. You may have taken your wife out on your first date in that car, but last time I checked, N.A.D.A. doesn’t include a section for sentimental value.

How much do I pay for collision coverage?
Here’s where your car’s value matters most and where you’ll need to do some math.
Look at your most recent insurance statement. You’ll notice the majority of your bill comprises collision coverage. It’s expensive, but property damage can be as well. According to National Highway Safety and Traffic Administration, the average property damage price in car accidents is right over $26K. As expected, insurers raise rates for policies covering more expensive risks. When you compare what you pay for collision insurance with your car’s actual cash value, does it add up?

If you’re paying an extra $60 a month to have full coverage, you have a $1K deductible, and your car is only worth $1,500, it’s not economical to keep full coverage. If your car were totaled, the insurance company would only pay $500, you’d be responsible for $1K, and you would have spent $720 annually paying for full coverage. You’ve then spent a total of $1,720 out of your own pocket. That’s almost the price of replacing your car and you’ve paid more to the insurer than you stand to get back if the car is totaled. It’s better to bank the difference.

If you’re wary of dropping full coverage, try dropping collision first. This may be easier if you’re a safe driver, and you’d still be covered in freak accidents, like if a tree falls on your car. Hey, it does happen.

How much is my collision deductible?
Another way to keep collision and peace of mind is to just raise your deductible. This will lower overall insurance rates while still keeping your policy. Knowing the value of your car will help determine if this is the right decision. If your car is valued at $5,500 for example, all you may want to do is raise your deductible, especially if you can’t pull the replacement cost of your vehicle out of your pocket. But if your car is valued at $1K and you raise your deductible to that amount, you’re paying for insurance that won’t cover you, which doesn’t make sense.

Ideally, you’ll only be dropping full coverage on a vehicle that’s not your main mode of transportation. In any case though, build up your personal savings in case something does happen to your car. Be proactive about any small repairs before they turn into big projects. Dropping full coverage is a great way to save money, but if you do, it’s all up to you to ensure your car stays in safe, secure, and operable condition. Since you’re not paying anyone to pick up the tab anymore if something happens to the car, it’s up to you to help its longevity. If something happens, it’s all on you. That means it’s worth investing time into determining whether full coverage is worth it.

North Carolina Insurance- Auto, Home & Life

If you're a North Carolina resident looking for insurance, you're in the right place.  We've compiled all the info you need to help you find home, auto, business and life insurance right here on this page. We recommend you read it over, visit the North Carolina Department of Insurance website and let us help you find the coverage you need today!

Auto Insurance

Your auto insurance protects you from monetary loss in the event of a car accident. Your insurance policy acts as a contract between you and your insurance company which says that in exchange for paying the premiums, your insurer will compensate you for any losses you suffer—as outlined in your policy.

The North Carolina Financial Responsibility Law requires all motorists to carry liability coverage, including the following:
◦$30,000 in bodily injury coverage per person
◦$60,000 in bodily injury coverage for all persons involved in an accident
◦$25,000 in coverage for property damage
>> But these minimum requirements may not be enough to cover damages in the event of an accident.

Before purchasing insurance for your automobile, you will want to ask yourself:
◦How much property can I afford to lose if it is stolen or damaged?
◦How much would it cost to replace those items?
◦If I am sued by someone who was hurt because of my misconduct, could I pay my legal costs? How could I afford the damage awards to the victim?
Your answers to these questions will affect the amount of coverage you choose to buy.

When you set out to find the right insurance policy, your agent will consider these factors when determining your premiums:

◦Your Driving Record: Your driving record is the largest factor in determining your auto insurance premium. North Carolina assigns points to motorists with convictions or at-fault accidents, which ultimately increase rates.
◦Where You Live: Your location also plays a part in determining your rates. Living in an urban area increases the risk of accident or theft and may boost your rate, whereas living in a rural area will decrease these risks.
◦Type of Automobile: Insurers must estimate the likelihood of theft and cost to repair or replace your vehicle when determining your rates. The style of your vehicle may also increase your premium: sports cars are likely to warrant higher premiums than mini vans. ◦Mileage: Motorists driving greater distances (to work, for instance) are at greater risk for accident, and therefore may receive higher premiums.

Homeowners Insurance

Your home insurance policy protects your home from damage incurred in the course of living. In addition, it protects you from financial duress by paying for any bodily injury or property damage for which you are liable. In case of a claim against you, your insurer will act on your behalf by negotiating a settlement, defending you in court and paying any judgments against you. If you finance your home, the bank may require you to insure it for at least the amount of your home loan. However, most NC insurance policies require coverage of at least 80 percent of the home's replacement value.

Many types of homeowners policies are available, so examine offerings closely to determine which policy type best suits your needs. Most companies in this state offer the following types of coverage:
◦Special Form (HO-3)—covers a single-family dwelling or townhouse against all risks except those specifically excluded.
◦Homeowners Contents Broad Form (HO-4) —provides coverage for a renter's personal property, but not the building itself.
◦Homeowners Unit-Owner's Form (HO-6) —covers a condominium owner's personal property, as well as any portion of the building he or she owns.
◦Homeowners Modified Coverage Form (HO-8) —insures the structure of an older home based on actual cash value.

North Carolina homeowners insurance premiums can vary greatly.  Several factors influence how much your premium costs you. These include: ◦Type of construction: Your home's ability to withstand or minimize loss has an impact on your premium. In addition, frame houses usually cost more to insure than brick houses. ◦Age of your home: New homes may qualify for discounts. Some companies are hesitant to insure very old homes. ◦Location: Urban areas have higher crime rates than rural areas, and rural areas tend to have fewer resources for fire protection. Both of these issues can affect your premium. ◦Deductibles: The higher your deductible, or the amount you pay before the insurance company begins paying, the lower your premium. ◦Amount of coverage: The amount of home insurance you purchase helps determine premium rates. ◦Additional coverage: Any extra coverage or additional coverage types you add beyond required state minimums raises your premium.

Life Insurance

Life insurance is a substantial investment in the lives of both you and your loved ones. Cost can be significant—but benefits can be crucial. Selecting the life insurance policy best suited to your needs requires four steps: deciding how much life insurance you need; how much you can afford to pay; the type of policy providing you the broadest, most-needed coverage; and the amounts various life insurance companies charge for that type of policy.

Life insurance is available in your state in three basic types:

◦Term life: Purchased for a specific time period. Benefits are paid only if you die while the policy is in effect. Generally cheaper than whole life insurance, and usually more practical for those who need a large amount of coverage. Premiums may change each time the policy is renewed. May be "convertible" to a whole life policy. Provides the most death protection for your money.
◦Whole life: Provides lifetime coverage and accumulates cash value over time. Premium rates remain stable as long as the policy is in effect. Can cost significantly more than term insurance.
◦Endowment: Pays you a predetermined sum of money if you live to a certain age. (If you die before then, the death benefit is paid to your beneficiary.) Cost is higher than for comparable amounts of whole life insurance. Provides the least amount of death protection for your dollar.

We can explain these characteristics further and help you determine which type of life insurance is appropriate for you. Meanwhile, follow these guidelines to ensure a comfortable purchasing experience and to best maintain your new life insurance policy:

New Laws Regarding North Carolina Auto Insurance

Several new laws went into effect across North Carolina regarding your personal auto, insurance and other transportation issues;

1. License plate frames can no longer cover the state name or registration sticker. Initially drivers will get warnings through Nov. of 2010 then you may be subject to a fine.
2. Insured car owners now have a three day grace period after their registration expires to register the vehicle and obtain the required safety inspection.
3. Its now illegal to send text messages, e-mails and use the Internet while driving. This law applies even when the car is stopped at a traffic light. The penalty is a $100 fine.
4. Reptiles must be in secured containers while in transport. If the animal escapes and attacks someone, the owner can be charged with a misdemeanor.
5. Instead of the old safety inspection sticker in the window to remind you its time for another inspection the inspection is based on your registration renewal date. When you complete the inspection at a certified inspection station the information is loaded into a statewide database. Your registration cannot be renewed unless the inspection has been completed.

Understanding North Carolina Personal Auto Insurance

An auto insurance policy consists of six types of damage coverage:

Bodily injury liability: Covers your legal fees, court costs and compensation due to bodily injury claims brought against you.
Medical payments: Covers the medical expenses for injuries sustained by you, resident relatives and other people in your auto as the result of an accident. (Auto insurance coverage varies by state.)

Property damage liability: Covers your legal liability for property damage claims brought against you.

Collision: Coverage that pays for damage to your auto and its equipment caused by collision or upset.

Comprehensive: Coverage that pays for damage to your auto and its equipment not caused by collision or upset. This includes, but is not limited to damage from fire, theft, glass breakage, vandalism and damage that results from contact with persons, animals, birds or falling objects.

Uninsured and underinsured motorist coverage: Provides coverage when you are injured in an accident caused by another person who either has no auto insurance or who has lower insurance limits than you carry and which are insufficient to cover your damages. Some states require that this coverage also include property damage.

Below is list of discounts that you may qualify for:
• Safe Car Driver (no accidents or tickets)
• Multi-Car Discount
• Age 55 or Over
• Passive Restraints
• Anti-Theft Car Devices Discount
• Auto Anti-Lock Brakes
• Home-Auto Multi-Policy Discount
• Payment Plan Discount (pay in full discount)
• Advance Quote Discount
• Auto Accident Prevention Course
• Good Student Car Discount
• Driver Training
• Reduced Car Usage Discount

NC Among Deadliest for Teenage Drivers

For Trey Ward, there’s no room for argument. The No. 1 rule when you get into his 1997 Chrysler: “No seat belt, no ride.”
Nationwide, North Carolina ranks fifth in fatal car accidents involving young occupants (16 or older), according to a new study released Monday by the National Highway Transportation Safety Administration. The study shows that young drivers and passengers around the country are more apt to not buckle up at night–males more that females. Two-thirds who died in accidents did not heed “click-it” pleas from parents and authorities.
In the 16-20 age group, 68 percent who died in car crashes at night in 2006 were unbuckled. In NC, of the 525 young people killed in nighttime accidents in 2006, 61 percent didn’t use selt belts. In all, 1,116 young NC people died in day and nighttime crashes that year. More than half weren’t buckled.
Another recent study by Allstate shows that Charlotte’s teen fatal crashes ranks ninth among the top 50 US metro areas. Speeding and not buckling up contributed to 80 percent of Charlotte’s teen driving deaths, the study showed.

Changes to NC Auto Safety Inspection

NCDMV has announced changes to the safety inspection process to go into effect 1/1/09

1. The safety inspection sticker will go away in 2009. Instead you will be required to have your vehicle inspected prior to your registration renewal. If the vehicle is not inspected prior to the renewal date the system will not allow you to renew your tag.
2. If any repairs are required in order to pass the safety inspection you will have 60 days instead of the previous 30 days to complete repairs and pass the inspection.

For more information go to the NC DMV website; http://www.ncdot.org/dmv/