It's time to Spring Forward NC!

Don't forget to change your batteries in your smoke detectors!

Getting Your Drivers License? Call Us First!

Before you go to the NCDMV to take your driving test or restore your driving license after a suspension, make sure you call us first! The N.C. General Assembly has enacted legislation to require some (but not all) driver license applicants in North Carolina to submit proof of automobile liability insurance coverage in order to obtain a North Carolina driver's license.

Proof of liability insurance coverage applies to those: Applying for an original license, including transfers from out-of-state; whose licenses are being restored after revocation or suspension; or Awarded a "Limited Driving Privilege" by the court.

Certification of liability insurance coverage must be submitted on DMV Form DL-123, or an original liability insurance policy, binder or an insurance card and must come from an insurance company licensed to do business in North Carolina: These documents must show: Applicant's name; Effective date of policy; Expiration date; and Date the policy was issued.  A  Form DL-123, binders and certificates are valid only for 30 days from the date of issuance.

Please make sure you call our office and add your teen driver to your policy before going to DMV so that we may issue you a DL-123 form.  Do not wait until you are at DMV unprepared or they will re-schedule your testing date!

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.

You May Not Need Additional Insurance When Renting a Car

The next time you are at the car rental counter, take a moment before you agree to purchase additional car insurance. Chances are the insurance that covers your personal car will be enough to cover the rental car as well. If you don’t know what your policy covers, it is easy to find out. If you want to rent a car and you are unsure about the amount of coverage you have with your personal insurance provider, the first thing to do is to call your car insurance company and find out if your policy covers rental cars. Many comprehensive car insurance policies provide this, meaning whatever coverage you have on your personal car will also apply to a rented car.

If you are renting a car because yours has been damaged or totaled in an accident, when you call your insurance provider, ask if your coverage will be enough for towing charges, payment of administrative fees and loss of use. Many people forget to inquire about the loss of use, which can mean hefty fees tacked on by a rental company for lost revenue while the car is repaired after an accident.

If your car insurance provides adequate coverage for a rental car, then there is no need for you to purchase the insurance coverage offered by the car rental company. It is also important to find out the circumstances under which your policy provides you a rental car at no additional charge- some policies only cover rental cars if the accident leading up to the car rental was not your fault.

Another step you can take is to contact the lending agency responsible for the credit card you plan to use when renting your car. Because credit card companies typically offer free car insurance benefits for rental cars, you may also have additional coverage at no extra cost. Some credit cards allow you to earn benefits in the form of rental car insurance. You should also check with your card provider before renting because terms and conditions can change without notice. You will need to know specifically what type of coverage it is and the coverage amounts. In many cases, you may find that your credit card may not cover property damages or limit the amount of medical bills that are covered.

Knowing your options and your current car insurance coverage before renting can keep you from purchasing additional, possibly unnecessary, and potentially pricey car insurance from the car rental company.

Auto Accident Checklist

If you are involved in an accident:

• Remain calm and polite.
• Turn on your hazard lights.
• If safe to do so, move your vehicle away from traffic.
• Do not discuss who is at fault or your insurance limits.
• Do not leave the scene of the accident.

* Contact emergency personnel

• If anyone is injured, call 911 for medical assistance.
• Do not move an injured person.
• Give police your version of what happened.
• Obtain the police officer's name, department and incident number.

* Exchange information

• Vehicle owner's name, address, telephone and/or email address
• Insurance information (company and policy number)
• Other vehicle information (year, make, model and registration plate)
• Driver's name, address, telephone and/or email address (if different from the vehicle owner's information)
• Obtain contact information from passengers and/or witnesses.
• Note the accident location.

* Take photos/video if safe to do so

• Accident scene
• Traffic controls
• Street names
• Road conditions
• Vehicles and other property damage

*  Contact your insurance agent or insurance company!

* Download Auto Accident Checklist Form

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

Cell Phones and Teen Drivers: A Dangerous Combination?

A new traffic study suggests NC teenagers have not paid much attention to state law that bans cell phone use by drivers under 18. The law went into effect in Dec. 2006.

A study was conducted by the UNC center and the Institute for Highway Safety. Researchers parked outside of 25 high schools discovered over 11% of teens were talking on cell phones while driving away from school.

Another study found 64% of teens were aware of the law forbidding cell phone use but only 39% of parents were aware of the ban.

Experts liken the use of cell phone while driving to have the same effects as being under the influence of alcohol.