North Carolina Auto Insurance – Here’s a Nice Add-On

Your North Carolina auto insurance policy is pretty much regulated by the NC Department of Insurance. They regulate the rates and the policy language as well. As such, the policy language is the same from one insurance company to the next. But, within that framework, you can find groupings of coverages or special endorsements that add protection or extend protection to your policy that are created or packaged together by a specific insurance company.

A good example of this type of coverage diversification is the add-on coverage that State Auto Insurance Company has available for its auto insurance customers. Let’s take a quick look at this special endorsement.

This endorsement adds some protections that are not automatically included in your NC auto insurance policy.

Rented Vehicle Coverage – provides physical damages protection (comprehensive and collision coverages) and related expense for rented vehicles.

Emergency Travel Expense – If you are over 50 miles from home then they provide up to $600 for travel expenses such as lodging, meals and transportation back to your residence if your vehicle sustains a covered loss.

Pet Coverage – Here’s an unusual item. State Auto will provide up to $500 coverage if you pet is injured or killed while riding with you in your covered auto.

Additional Transportation Expense – Provides an additional $10 per day for replacement vehicle over the limit already provided by your transportation expense endorsement if you have that on your policy.

Cellular Phone Coverage – Covers loss to your cell phone with no deductible regardless of location.

GPS Coverage – Pays up to $500 for loss to your GPS system in your car.

Locksmith Services – Provides Electronic Key Replacement up to $250 per incident.

Death Indemnity – Subject to a maximum of $10,000 per person and $20,000 per incident, but if the person is wearing a properly fastened, factory installed seat belt, the limit is increase to $25,000 per person and $50,000 per incident.

Of course, the above description is for informational purposes only. You should actually take the time to read and understand this endorsement carefully should you choose to purchase it. But it is important to understand that there are many types of extra coverage endorsements out there that can add or extend the coverage of your NC personal auto insurance policy. You should take a moment to check them out carefully to see if any of them fit your needs and your budget.

At Clinard Insurance Group, in Winston Salem, NC, we want all insurance buyers to be informed consumers. If we can help you with your auto insurance, your home insurance, your business insurance or even your life insurance or retirement accounts, please call us, toll free at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

You can find the basic source information for this article at www.InsuranceAnswerGuy.com.

Warning – Before You Shop Your NC Auto Insurance Around…..

We see so many ads on TV today exhorting us to call the 800 number and get an auto insurance quote. Save money they all say. But it’s what they aren’t saying that should be screaming the loudest in your ears. Because what they aren’t saying should warn you not to call them.

Ok, so what is it they are leaving out of the call me now messages? In short, you don’t hear them asking you to call them to save money on your homeowners insurance. And if you live in NC, that is an important distinction. Because in NC, you see, insurance companies are pretty reluctant to write homeowners insurance due to the way the legislature has preloaded the system to protect those with beach properties at the expense of everyone else. If want to read about how this problem developed, please read my blogs on the homeowners insurance crisis Part I and Part II. To better understand how it all turned out, read my blog on house bill 1305. The bill passed by the way.

So what does this mean for you? Well, I can tell you that when someone calls our office and wants us to quote or write only their home insurance, we are left with a diminished marketplace for their protection. Most insurance companies in NC will now not write a homeowners policy without the auto insurance policy to support it. Of course, those that have just their home insurance in place with an insurance company are pretty safe for now. I have not heard of many cases of mass cancellations of standalone homeowners policies in NC at this time. But there has been some activity that comes in the form of consent to rate letters. To learn more about that, read my blog on consent to rate letters in NC.

So this diminished marketplace means higher rates on homeowners policies that are being moved around without the auto policy for support. So, if you take the advice of the ads on TV, and move your auto insurance to a new company to save money, the homeowners policy that you now leave behind, unsupported by your auto policy, might be non renewed at the end of the policy term or you may see dramatically higher rates on that policy at the next renewal.

The hard market for homeowners insurance in our state means that you as an insurance consumer must play your cards carefully when making changes. If your home and auto insurance are with the same company now, then you should be careful to keep these policies together until the homeowners insurance market in NC softens. Separating them can end up costing you a lot more money and grief over time. And it’s not likely that the auto insurance company that is screaming for you to save money on your auto insurance by calling them is going to let you in on that secret. For the most part they would love to take your very profitable (for them) auto insurance and leave behind your more problematic homeowners insurance.

At Clinard Insurance Group in Winston Salem, NC, we take pride in working hard to help every insurance buyer become a better informed consumer. We still have open markets for standalone homeowners insurance but they are closing up over time as the market continues to harden in this area. If you need help with your home insurance, your auto insurance, your business insurance or even your life insurance, I hope you will feel free to call us, toll free, at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

Source data for this article was pulled from other articles which can be found in their entirety at www.InsuranceAnswerGuy.com.

Crash Taxes – They Could Make You A Double Victim

Imagine you are cruising on the interstate in a driving rain and you lose control of your car and slide into the guardrail. Thankfully you are ok and you don’t feel any pains as you get out of your car to see the new shape you created out of your front bumper. A passing motorist sees your accident and dials 911 as he drives on through the rain. 5 minutes later a police car, a fire truck and an ambulance arrive to check on you. 3 weeks later you receive bills from each of these organizations for their time and trouble checking on you. You turn in the $2763 in emergency response bills to your auto insurance company and they decline to pay them. Welcome to the brave new world of crash taxes.

Crash taxes have been on the books of many local governments for years but until this recent economic downturn, they have not been used. Now we are seeing a trend sweeping our country to apply these charges for emergency responders to those involved in the accident. While there are some creditable arguments in favor of crash taxes, I see more running against.

First of all, let’s start with who pays. In most cases your auto insurance is not going to pay for these crash taxes. That could leave you holding the bag and if you don’t pay you can damage your credit or possibly even face misdemeanor charges. If we do choose to have our insurance companies cover these costs, then the costs of insurance will go up and we will have just one more expense being paid by an entity with little control over the costs that go into this expense.

Another possible problem with this approach is that some people may become reluctant to call for emergency services if they know they will have to pay for them. This failure to call or even a delay in calling may cost us dearly in lives lost as well as property damaged, the latter especially in the case of chemical spills on our highways.

I also have a fundamental problem with this approach in that some cities are amending their program to only charge the out of state, at fault parties. While this is politically expedient for the local politicians, it has a ring of unfairness to it and leads to a lot of uncertainty for travelers as they leave their home territories.

Last of all, is the idea that local taxes already go to pay for these services and those are controlled, if distantly by the voters in that area. Why should they be charged again?

Currently, 10 states have banned crash taxes, so you can travel safely in them. They are: Alabama, Arkansas, Florida, Georgia, Indiana, Louisiana, Missouri, Oklahoma, Pennsylvania and Tennesee.

So, what should you do if you get billed for an accident response of some sort after an accident? First of all, contact your insurance agent and forward on the bill to determine if there will be coverage for the charges. Then get a copy of the police report detailing what medical assistance was actually provided. Last of all, if your insurance company declines to pay for these charges (and in most cases they will), check with an attorney to understand what criminal liability you may incur should you decide not to pay the bill yourself.

My sense is that crash taxes are generally going to be disliked by most of the public. This will probably mean that they don’t last long and of course if the economy gets better they should go away. A rising tide floats all boats after all. In the meantime, as you travel, be aware that this trend could catch you in its trap.

At Clinard Insurance Group in Winston Salem, NC, we work hard to help our clients become informed insurance consumers. Knowing about crash taxes before you get a bill in the mail is just one small example of our knowledge outreach program. If you need help with your NC auto insurance policy, your NC home insurance policy or even your personal umbrella or life insurance, please call us, toll free, at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

The source information for this article was pulled from articles which can be found in their entirety at www.insuranceanswerguy.com.

You Might Be Due A Refund On Your NC Auto Insurance Policy – And That’s Not Necessarily A Good Thing

The NC Insurance Department has finally come to an agreement with the Insurance Companies selling auto insurance in NC to settle their differences on the 2008 rate changes that applied to auto insurance and motorcycle insurance policies. There are a few things you should know about who will get a refund and when those checks will be mailed.

First of all, this refund affects all auto and motorcycle insurance in NC with policy terms from January 1, 2009 to October 31,2009. In most cases, checks will be issued only if your refund due plus interest is greater than $5.00. You should receive an explanatory memo with your refund check. If you are due a check for more than one policy term, then most companies will combine all of those into one check. Companies will be mailing out checks between either the May1 – July 31 time window or the November 2010 and January 2011 time window. The timing here will depend on whether that company was writing 6 month auto policies, or 1 year auto policies or both. Interest will be added to the checks through October 31, 2010. The total amount of the refunds will be more than $50 million.

These refunds are the result of a dispute between the N.C. Department of Insurance and the N.C. Rate Bureau (NCRB) over rates ordered in 2008. During the appeals process, the NCRB implemented an interim 9.4 percent rate increase that went into effect on Jan.1, 2009. In cases where insurance companies charged policyholders more than the rates determined by the 2009 settlement, insurance companies are required by statute to refund the difference between the rates charged and the settled rates, with interest.

The 2009 auto settlement did away with the NCRB's implemented 9.4 percent 2008 rate increase and denied their 2009 request for an additional 1.4 percent rate increase and included an additional 0.5 percent decrease. Under the settlement, the NCRB may not file changes to auto rates until 2011, which means that the maximum allowable auto rates are locked in until Oct. 1, 2011 at the earliest.

While you may get a refund, my take on it is that most of our companies were charging much below the maximum NC rate allowed at the time and so a refund indicates that at that time you were viewed as a high risk to the insurance company and charged a higher rate. If you get a refund check, then the next thing you should do is contact your agent to see if you are still considered a high risk due to either your driving record, your credit or some other factor. This check, while fun to get really indicates that your insurance company is charging you their highest rate and perhaps you should take some time to shop for less expensive car insurance.

At Clinard Insurance Group, in Winston Salem, NC, we work hard to help all of our clients become informed insurance consumers. If we can help you with your auto insurance, home insurance, life insurance or even your business insurance, please call us toll free at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

The source information for this article can be found in other articles at www.InsuranceAnswerGuy.com.

NC Negligence Laws May Change And The Result Will Be Higher Car Insurance Rates

The NC House is now considering a tort reform bill that could dramatically increase the amount you spend on your auto insurance policy as well as on your home insurance policy and business insurance policies. The reason this bill is so bad for your insurance rates is that it aims to change our current law of contributory negligence to one of comparative fault.

So what does this mean? Well, with our current laws, if you contribute in any way to the accident that causes damages, then you cannot recover these damages from the other party. Comparative fault permits a plaintiff to recover from a defendant if his negligence does not exceed that of the defendant. Now, if we adopt comparative negligence as our state law, then as you can imagine, more claims are going to have to be handled by the court systems because now we have to determine who had the most fault in any accident or event as opposed to saying both parties were somewhat at fault so everyone settles their own claim with their own insurance company. And as you can imagine, having all of these claims settled by our court system will slow down the claims and increase the costs of the claims. And you don’t have to be a rocket scientist to know that those costs are going to be passed down to the consumer.

Here are some of the findings by the IFNC (Insurance Federation of NC) regarding this bill.

It is estimated that this change in the law will increase auto insurance premiums by 3% to 16% right away. The long term increases in costs could dwarf these numbers.

81% of voters surveyed said that they are opposed to any legislation that increases their taxes or their household expenses.

69% of those polled said the trial attorneys would benefit if the law were changed.

$150 million annually will come out of consumers’ pockets if rates rise just 5% on auto insurance alone. But this change will increase the costs of all policies that have a liability insurance element. This includes homeowners insurance and business insurance policies.

A substantial majority of voters believe that under our current system our courts are open and fair for those who have been hurt in an accident or injured on the job.

Actuarial studies show that states with comparative fault systems have higher auto insurance rates than state that use contributory negligence.

Let’s face it, there are two industries that will make more money of this change goes through. One is trial attorneys and the other is insurance agents. That’s right, I would personally stand to gain from this decision but I still think it is the wrong decision and I urge you to take action to stop it. The appropriate step for you to take to oppose this legislation is to write to your State Senator and ask him or her to vote NO on House Bill 813. For more information or sample letters to send or email to your State Senator, visit Home | Insurance Federation of North Carolina.

At Clinard Insurance Group, in Winston Salem, NC, we want all of our clients to be informed insurance consumers. We want you to have the information you need to make wise decisions about how to protect your assets. If we can help you with your auto insurance, your home insurance, or even your business insurance or your life insurance, please call us toll free at 877-687-7557 or visit us on line at ClinardInsurance.com.

The source information for this article was drawn from information which can be found at www.InsuranceAnswerGuy.com.

First Accident Forgiveness - For North Carolina Auto Insurance This Is The Law, Not A Special Policy Feature

You hear it on the television commercials, how this company or that company will forgive your first accident and not charge you extra for it. But the fine print is hard to read and flies by your screen far too quickly. What they don’t tell you is that every North Carolina auto insurance policy offers you first accident forgiveness. What they also don’t tell you is that this rule is full of clauses that can put the charges back on your policy later. So here’s the truth about first accident forgiveness.

All North Carolina personal auto insurance policies are governed by the same policy form. Part of this policy form and its rules cover exactly when the insurance company can surcharge your policy with extra charges for past or current accidents and moving violations. One of these sections discusses what is called a non-chargeable accident.

Anytime you have an at fault accident or a moving violation, insurance points can be added to your policy. These points remain on your policy for 3 years and they generate additional charges to your policy. This of course is an attempt to raise the rates for risky drivers while keeping them as low as possible for safer drivers. When you have an accident that is your fault, there are a few exceptions that allow you to avoid the associated insurance points. This is the first accident forgiveness section and these are the rules:

If the accident is your fault and the total damages are under $1800 then it might be a non-chargeable accident. The next requirement is that the accident caused property damages only, in other words, no one was injured. Some minor bodily injury charges are allowed, such as an ambulance bill and doctor checkup but only if the result is that no one was actually hurt. The last requirement is that no drivers on the policy have a chargeable accident or ticket in the past 3 years.

Now if all of the above conditions are met, then you should receive no additional charges on your policy for that accident. But there is one additional caveat. If in the three year period following this non-chargeable accident, you or any other driver in your household has an at fault accident of any kind, or a moving violation, then the old accident becomes a chargeable accident and the points associated with that accident are now added to your policy for the remainder of their 3 year term.

So, now you have a better understanding of that fine print that flies by your screen during commercials. Just know that some companies have chosen to use a policy provision to which you are entitled and dressed it up as a special feature that they offer you. It’s a marketing gimmick and nothing more. Don’t bite on that hook for that bait.

At Clinard Insurance Group in Winston Salem, NC, we work hard to help all of our clients become informed insurance consumers. If we can help you with your auto insurance, your home insurance or your business insurance or life insurance, please call us, toll free at 877-687-7557 or visit us on line at www.ClinardInsurance.com.

The source information for this article was pulled from information which can be found at www.InsuranceAnswerGuy.com.

When It Comes To Insurance Policies, You Need The Middleman

The old saying, cut out the middleman, might seem at first blush to apply to insurance buying, but a second look will prove that you not only need a middleman, you need an independent middleman. The middleman will not cost you money here, it will actually save you money, not only on your insurance purchase, but even more so if you experience a claim. Read on to find out exactly why.

First of all, let me say that when I discuss the middleman in an insurance policy purchase, I am talking about a truly independent middleman, in this case an independent insurance agent who can represent your needs and protect your rights. Direct writer insurance agencies that represent only one company are not independent enough to save you from yourself. In addition, if you purchase insurance from an 800 phone number or a company that has you quote your own policy online, you are not going to cut out the middleman cost, you will only be cutting out the service. This is true no matter if you are purchasing an auto insurance policy, a home insurance policy or even a business insurance policy.

There are two ways that an independent middleman can help you and in both cases, the middleman does not raise the cost of the insurance. That’s evident when you compare the rates of direct writing insurance companies against those offered by independent insurance agencies.

The first way that you will be better served by a middleman is in the purchasing process. Let’s face it, insurance is a complicated legal contract, designed to protect you from certain types of financial ruin. Buying insurance is not like buying a head of cabbage at the grocery store. Each person’s situation and insurance needs are different and if you don’t have the help of someone who understands the contract intimately, who is there to help you figure out your specific needs, then chances are you will make a mistake somewhere. And the mistake could cost you everything you have worked so hard for. This is a corner you just don’t want to cut.

The second way an independent middleman can protect you is as a buffer between you and the insurance company when it comes to claims questions or claims help. Let me give you an example. Recently a friend of mine came to me and asked for help with her homeowners insurance rates. As I began to work out her needs with her and develop quotes, we found that she had several water damage losses listed in the public record as losses. She complained that she never received any claim payment and so they shouldn’t even show up. She just called her agent to ask if the water damage would be covered. In both cases it wasn’t. But the problem is that her agent was not an independent agent. He represented only one company and as such was an employee of the company. When she called to ask if the water damage was covered, he was compelled to advise his company of this event and this information was entered into her loss file as well as into the shared loss information called a CLUE report.

These water damage losses on her CLUE report made her house uninsurable for all of the companies that we represented and her current insurance company was able to keep increasing her rates every year since she had no option to go anywhere else for her homeowners insurance. But that is not the end of it. When she went to sell her home, the realtor who represented the buyer discovered the clue report information and she was required to implement costly mold eradication procedures in order to sell her home. If she had been our client, and called about the water damage to her home, our independence would have allowed us to tell her that the claim wasn’t covered and that she shouldn’t file the claim because of the other costs she might incur in doing so. In this case, her lack of a truly independent middleman cost her money not only on her home and auto insurance policies, but also when she decided to sell her home.

Remember, with insurance a middleman will not cost you money, an independent middleman will actually save you money. At Clinard Insurance Group, in Winston Salem, NC, we are an independent middleman for our clients and we add value to their insurance buying experiences every day. If we can help you with your homeowners insurance policy, your auto insurance policy, your life insurance policy, or any of your business insurance needs, please call us toll free at 877-687-7557 or visit us online at www.ClinardInsurance.com.

The source information for this article was pulled from articles which can be found at www.TheInsuranceAnswerGuy.com

When It Comes To Insurance Policies, You Need The Middleman

The old saying, cut out the middleman, might seem at first blush to apply to insurance buying, but a second look will prove that you not only need a middleman, you need an independent middleman. The middleman will not cost you money here, it will actually save you money, not only on your insurance purchase, but even more so if you experience a claim. Read on to find out exactly why.

First of all, let me say that when I discuss the middleman in an insurance policy purchase, I am talking about a truly independent middleman, in this case an independent insurance agent who can represent your needs and protect your rights. Direct writer insurance agencies that represent only one company are not independent enough to save you from yourself. In addition, if you purchase insurance from an 800 phone number or a company that has you quote your own policy online, you are not going to cut out the middleman cost, you will only be cutting out the service. This is true no matter if you are purchasing an auto insurance policy, a home insurance policy or even a business insurance policy.

There are two ways that an independent middleman can help you and in both cases, the middleman does not raise the cost of the insurance. That’s evident when you compare the rates of direct writing insurance companies against those offered by independent insurance agencies.

The first way that you will be better served by a middleman is in the purchasing process. Let’s face it, insurance is a complicated legal contract, designed to protect you from certain types of financial ruin. Buying insurance is not like buying a head of cabbage at the grocery store. Each person’s situation and insurance needs are different and if you don’t have the help of someone who understands the contract intimately, who is there to help you figure out your specific needs, then chances are you will make a mistake somewhere. And the mistake could cost you everything you have worked so hard for. This is a corner you just don’t want to cut.

The second way an independent middleman can protect you is as a buffer between you and the insurance company when it comes to claims questions or claims help. Let me give you an example. Recently a friend of mine came to me and asked for help with her homeowners insurance rates. As I began to work out her needs with her and develop quotes, we found that she had several water damage losses listed in the public record as losses. She complained that she never received any claim payment and so they shouldn’t even show up. She just called her agent to ask if the water damage would be covered. In both cases it wasn’t. But the problem is that her agent was not an independent agent. He represented only one company and as such was an employee of the company. When she called to ask if the water damage was covered, he was compelled to advise his company of this event and this information was entered into her loss file as well as into the shared loss information called a CLUE report.

These water damage losses on her CLUE report made her house uninsurable for all of the companies that we represented and her current insurance company was able to keep increasing her rates every year since she had no option to go anywhere else for her homeowners insurance. But that is not the end of it. When she went to sell her home, the realtor who represented the buyer discovered the clue report information and she was required to implement costly mold eradication procedures in order to sell her home. If she had been our client, and called about the water damage to her home, our independence would have allowed us to tell her that the claim wasn’t covered and that she shouldn’t file the claim because of the other costs she might incur in doing so. In this case, her lack of a truly independent middleman cost her money not only on her home and auto insurance policies, but also when she decided to sell her home.

Remember, with insurance a middleman will not cost you money, an independent middleman will actually save you money. At Clinard Insurance Group, in Winston Salem, NC, we are an independent middleman for our clients and we add value to their insurance buying experiences every day. If we can help you with your homeowners insurance policy, your auto insurance policy, your life insurance policy, or any of your business insurance needs, please call us toll free at 877-687-7557 or visit us online at www.ClinardInsurance.com.

The source information for this article was pulled from articles which can be found at www.TheInsuranceAnswerGuy.com