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!
Workers' compensation is a mandatory business insurance. You cannot do business legally in North Carolina (with employees) if you do not have workers' compensation insurance or your business is not legally qualified as "self-insured."
There are some exceptions for some family businesses, agriculture, some maritime or federally regulated business, but the exceptions are so few that, for purposes of this post, assume your business needs workers' compensation insurance!
As a necessary cost, it is critical to control and lower that cost if possible. Doing so requires an understanding of how your premium is established and what can be done to lower certain factors affecting that rate.
Understanding how Premiums are Calculated Premiums for workers compensation ares calculated by the following formula:
There are two critical variables in the equation: rate and experience modifier.
Understanding Your Rate Every year, NC will categorize your industry. The state will assess risk based upon actuarial calculations. Typically, states follow the National Council on Compensation Insurance (NCCI) in determining the classification and rate. The rate is based on a myriad of factors. The NCCI classification for clerical work, 8810, is usually the lowest, while the classification for the construction trades (especially carpentry, 5645) is usually the highest. Why? Carpenters get hurt on the job and secretaries do not.
Understanding Your MOD The experience modifier is also a critical part of the calculation. It is typically referred to as your MOD. The MOD is a numeric representation of your business's loss and claim history. It is calculated differently by states. In general, a brand new business will have a MOD of 1.00. But, look how this is used in the formula. It is a multiplier on the premium. If your claims history is low it will decrease. If your claims history is high it will increase. For example, a MOD of .90 acts as a 10% discount on the premium while a MOD of 1.10 acts as a 10% increase.
Premium Based on Every $100 in Payroll The final premium is a multiple value to be applied to every $100 of payroll. For example, a rate of .08 with a MOD of 1.00 results in $8.00 of annual premium for each $100 of payroll or $8,000 on $100,000 in payroll.
Control and Lower MOD to Lower Premiums Your business will have little control over the broad industry it is in and little effect on the Rate assigned by the state. But, your business can dramatically affect premiums by lowering its MOD.
Make Safety a First Priority - A safe workplace (onsite and offsite) lowers the number of worker injuries. If possible, budget for an outside safety evaluation and implement the changes suggested. Mandate employee safety training. Show employees what an amputation or electrical burn looks like to reinforce safety. Because the MOD variable in the premium equation is a multiple, every small reduction leads to big savings.
Enroll in State Sponsored Programs - Every state sponsors programs to improve safety in return for a deduction in the MOD rating. In my state, Ohio, employers can get a deduction for participating in the Drug-Free Workplace Program. There are deductions for allowing inspections or focusing on certain injuries. The programs are available and you need to research them. The programs are not easy and compliance can be difficult, but not to the business that puts safety as its first priority.
Become Part of a Group for Group Rating - Most states offer large discounts to recognized groups. This is called group rating. Technically, this discount is a rate discount, but I put it under MOD because in order to qualify for most groups, your business must have a better than average safety history. New businesses may not qualify. Start now to implement a safety first mentality with the goal of becoming group rated.
Review Your NCCI Classification - Accountants will tell you that most workers compensation programs have a 30-35% error rating when it comes to business classification. Do not use one classification for your business and have a professional prepare your classification paperwork. Classify all of the employees individually and demand proper classification. In the example above, a secretary in your business classified as a carpenter (because she works at a carpentry contractor) can cost thousands in premium dollars. This is because a carpenter's rate is two or three times as much as a secretary's premium rate.
Review Payroll Figures - Like NCCI classifications, payroll calculations are frequently wrong or not estimated correctly. A professional review of payroll history can result in a lower estimated payroll and lower resulting premium.
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:
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. 
