Don’t Let An Auto Accident Turn Into An Identity Theft Loss

While auto accidents are a common occurrence all over the country on any given day, a recent NAIC study found that very few people know what steps they should take after an accident occurs and what information they should or shouldn’t share with the other parties to the accident.  The problem is that right after an accident happens; most people are so upset that they are not paying much attention to protecting their identity.  This momentary confusion provides a great opportunity for an identity thief to make his mark.

The National Association of Insurance Commissioners study recently discovered that most consumers are unsure about what they should do after an accident and which information they should record and what they should share about themselves.  There was also a lot of confusion about when and whether to call the police after an accident.  Here’s a short list of some of the most common misperceptions that this study revealed:

·         Nearly 30% of drivers believe that they are required to share their personal phone numbers.  This is not always necessary and calling the police will help you sort out exactly what you need to share with the other party.

·         25% of consumers would share their home address.  This of course gives identity thieves one more place to go to sort through garbage or mail to find out more about you to give them an edge in stealing from you.
·         Nearly 20% believe that the only time you need to call the police is if someone was injured in the accident.  The truth is that if the accident occurs on public property, the police would like to be called in every instance.  If you are not at fault, then calling the police is probably going to be to your advantage and quite often the police report is very helpful in facilitating your auto insurance claims process.
·         Nearly 40% felt that they should share their driver’s license with the other driver.  One in six would let the other driver photograph their license to save time.  But, since some retailers use driver’s license information to verify identity over the phone, this could be risky behavior.

T    The NAIC does have a downloadablechecklist on their website of the information you should obtain if you are involved in an auto accident.  Below is a list of the information that you should get and write down somewhere or record directly into your phone after you have been involved in an automobile accident:

1.       The date, time and location of the accident.
2.       The weather or road conditions if there are conditions that are not typical.
3.       A description of the accident itself, add direction of travel and estimated speed of each vehicle involved.
4.       Describe any and all injuries and include information about emergency response, either police or medical.
5.       Describe damages and take photos or video with your phone where possible.  You should photograph the license plates of the vehicles involved, the damages to all vehicles involved, the damage to your vehicle, and any damage to any other property or objects at the scene.  Also take photographs of landmarks and street signs to help identify the location.

At Clinard Insurance Group we insure several thousand families all across North Carolina.  We generally advise our clients to call us first before reporting their claim directly to the insurance company.  This is true for all types of claims from auto insurance and homeowners insurance claims, to business insurance or workers compensation insurance claims.  We may be able to better advise you the implications of your decision to either turn in the claim or not turn it in.  After that, you can make the choice based on this additional information.  We also provide a free phone app that will help you gather the information that you need after an accident.  You can find links to that app at www.ClinardInsurance.com or you may search for Clinard Insurance in the Android marketplace or the Apple app store.

Does Your Auto Insurance Policy Include OEM Parts Coverage For Your Car?

Most people buying a new auto insurance policy don’t stop to think about the parts will be used to repair their cars if they are involved in an accident.  Most of us assume that our vehicles will be fixed and put back on the road, as good as new.  But in North Carolina, the law and the auto insurance policy language could leave you with some bad feelings after the dust has settled on your claim. 

OEM stands for original manufacturer’s equipment.  This terminology is used for parts that were manufactured by the original car company for your car.  In NC, car insurance companies are not obligated to pay for OEM parts when paying for damages to your wrecked vehicle.   Since OEM parts usually cost more than non OEM replacement parts, most repairs are not done with replacement parts that were manufactured by the original car manufacturer.

Now these non-OEM replacement parts may or may not be as good or even better quality than OEM parts.  But that’s not the point.  The point is that most people have expectations that include OEM parts being used to repair their cars.  Let’s face it, many of us have personal relationships with our cars and don’t want to feel cheated after an accident and repair work.   There is a simple solution to this problem but it requires that you take action before your car is damaged.  Most insurance companies doing business in NC have an OEM parts endorsement that you can add to your auto policy to make sure that the costs of these parts is covered if you have a loss.  Some restrictions apply to the OEM endorsement on the North Carolina auto insurance policy.  For instance, most insurance companies will require that you add this endorsement within 60 days of the purchase of a new vehicle.  Usually you can only add the endorsement to a vehicle that you purchased brand new.  Also, most companies will drop this coverage once your car is over 7 years old.  One company that we represent will let you add OEM coverage at any time and will allow you keep it on the policy until your vehicle is 10 years old, so there are some exceptions to these rules.

The cost of this protection is usually about 5% additional on your comprehensive and collision insurance premiums.  Now, keep in mind this other issue:  Even if you buy OEM coverage for your car, if you are hit by another person and that person is at fault, then your claim will be handled by the other person’s insurance company.   Letting them settle the claim with you will mean your OEM protection will not apply.   You can get around this by filing a collision claim with your insurance company so that you can benefit from the OEM endorsement on your policy.  If you do it this way, then you will have to pay the collision deductible on this claim out of your pocket and wait to be reimbursed by the other party’s insurance company if and when your insurance company files a subrogating claim against them and collects.  This may take some time or might even never happen, depending on the size and complexity  or the claim.

This is just one illustration of how complex North Carolina auto insurance really is.  There are many things for you to consider when buying your auto insurance policy.   From just this one example you can see that do it yourself car insurance is a bad idea.  Here at Clinard Insurance Group,  we write thousands of auto insurance policies for our customers located all across the state of North Carolina.  We will take as much time as you need to make sure that you understand all of your options and that you are completely comfortable with your choices.  Please give us a call for help with your auto insurance or your home insurance.  You can reach us toll free, at 877-687-7557.

What Are The Insurance Companies Leaving Out Of Their TV Ad Offers?

I am amazed at the number of TV ads that are devoted to convincing you to switch auto insurance companies to save money.  They are almost so common place that we don’t even notice them anymore.   While I think that anyone who shops long enough can always find a lower rate on their car insurance, a 2009 survey discovered that only 14 percent of people who shopped around for a better rate on their car insurance found that they could save money by switching companies.  Still, the ads continue to bombard us with new and interesting gimmicks and twists that will entice you to start shopping.  So what about these gimmicks, do they save you money or are they just marketing tricks?  I want to pull back the curtain on a few of them to give you an idea of what you are up against.

One of the newer gimmicks is the Nationwide Insurance vanishing deductible trick.  It seems like a great idea; Nationwide will reduce your deductible by $100 for each year that you don’t cause an accident or turn in a comprehensive claim like windshield, vandalism or theft of your vehicle.  Of course if you have a claim like that then your deductible will then go back up to the original level, minus a $100 sign up reduction.  No more than $500 of your deductible can ever disappear.  What the blurry fine print on the screen says is that this program will cost you $60 per year per car.  So this means that you would be paying $60 per year for $100 of protection that you will probably never need.   This is a great deal for Nationwide and not such a  good deal for you.  If you are truly a safe driver and have few claims, then I would advise that you take the highest deductible that you can afford and apply some of the savings to making sure that you have very high liability limits.

Another interesting ad is the Progressive Insurance snapshot program.  Right now, this is only available in 39 states and North Carolina is not one of them.   This program installs a big brother like device into your car’s diagnostic system and sends your driving information to the insurance company.  Now in theory, I like the idea of rewarding good drivers for their good driving habits.  But the problem with this program is that your driving habits will have to be the crème de la crème of all drivers in this program for you to see the huge discounts that they project in the ad.  Under a system like this which is voluntary, only the safest drivers will sign up and those drivers are now your competition for the discounts.  Let’s not forget the creepiness of having your insurance company checking out all of your driving habits.  It would be like me riding around in your back seat everywhere you go, making quiet notes on my clipboard and giving you disapproving looks in the rear view mirror.

Another highly advertised program is the accident forgiveness program.  Allstate insurance pushes this program but the details reveal that it may not be such a great deal for you.  First of all, you will have to pay extra to enroll in this program.  And in North Carolina, there is already a first accident forgiveness program built into the regulations.  To learn more about that, click here.   If you are generally a safe driver, then this program usually means that you end up paying for something that you will never need.  And the offered rebates for safe driving have to come from somewhere.  As you may have guessed, the insurance company will need to collect this money from you in advance in order to give it back to you later.  As evidence, Allstate recently reached an agreement with California regulators to stop selling their Your Choice program there after a lawsuit alleged that the program overcharges policyholders and that the costs for this program were deceptive.

A critical view of these programs might lead you to believe that these special programs are not designed to save you money on your car insurance, but rather to get you to call them for a quote in the first place.  I would advise that you take the time to find an independent insurance agent that you trust.  Choose one that will take the time to listen to you and discover your needs and then go out and shop the marketplace of insurance companies to find the program that is best for your unique situation right now, and in the future.  Car insurance is complicated and critical to your financial wellbeing.  You are trying to protect all of your possessions and your income stream and this should not be a do it yourself project.

Clinard Insurance Group is an independent insurance agency.   We insure more than 5000 families all across North Carolina and we want for all of our clients to be informed insurance consumers.  We will take as much time as you need to be sure that you are comfortable and have a full understanding of the insurance policies that you purchase from us.  If we can help you with your homeowners insurance, your auto insurance, your life insurance or even your business insurance, please call our office, toll free at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

NC Auto Insurance Advice – 5 Things To Do If You Have An Accident

Since most of us just aren’t frequently involved in auto accidents, if this happens to you then you might find yourself pretty flustered.  If you know what to do ahead of time, perhaps it may help you navigate those first few minutes after the collision.  So, here are the broad categories of things you should do if you find yourself in an auto accident.

At the top of the list of course is that you should call the police.  But read on, as there are a few caveats. If the accident was your fault, and there are only minor property damages; no one has been injured,  and you think you will want to pay for the damages yourself, then not calling the police might work out in your favor.  NC insurance rules dictate that you will be charged insurance points for accidents that are your fault.  Now if the accident only created property damage and the total damage is under $1800 and you have no other tickets or insurance points on your record, then you will not be charged for this accident.  In those cases, by all means, call the police right away.   But, if all of those conditions are not true and you want to avoid the insurance points, then avoiding a police report increases your odds of avoiding the insurance points.  The insurance company will only know about the accident if you file the claim or if the accident shows up on your motor vehicle record.  Calling the police means that your record will indicate you were involved in an accident.

The next step to cover is avoiding additional damages and risks to you.  Move your car away from the roadway to avoid additional accidents.  Stay safely away from the street or highway while you are out of your vehicle.

Step 3 is to  get the correct information about the other driver.  Of course this becomes even more important if you don’t think the accident is your fault.  Be sure to obtain the other driver’s name, his or her driver’s license number, phone number and insurance information and license tag number.  In addition, be sure to verify the name of the owner of the other vehicle.  So often we find that the driver is not the registered owner of a vehicle after an accident.  Knowing the owner’s name is going to speed up the process of filing a claim against his or her insurance policy.

Now you need to fully document the event.  Take as many photos as possible document the damages to each car as well as the accident site. If you use the video camera on your phone, then you can make comments as you go that may be helpful to the investigation.   Find and interview any witnesses and be sure to get their full names and contact numbers so that you can reach them later if needed.  The more information you can obtain, the better.  Clinard Insurance Group customers can request a vehicle claim kit, complete with a camera and other tools to help you in an accident.  Click here to learn more about this kit.

Last of all,  file an accident report.  If you are not at fault, then call the other party’s insurance agent and file a claim with them for your damages.  You should expect the insurance company to contact you and perhaps ask you to provide a recorded statement of what happened.

Clinard Insurance Group is an independent insurance agency located in beautiful Winston Salem, NC.  We service thousands of NC auto insurance policies for clients all across NC.  We can also help you with your home insurance and your life insurance needs.  Give us a call, toll free, at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.  

Social Media Becomes a Tool In The Fight To Reduce Insurance Fraud

A young man brags on facebook about sinking his car in a lake before he reported it stolen. A carpentry company creates a promotional video for youtube which shows their workers installing roofing material. Another youtube video shows people ramming a van into a tree over and over again. You can even view some stage accident videos by NICB here. For some reason, people just don’t think that social media is a tool that insurance claims adjusters can use.

Studies indicate that at least 10% and perhaps more of all property and casualty insurance claims are fraudulent. The National Insurance Crime Bureau estimates that workers compensation fraud alone costs as much as $5 billion per year. This cost is added into so many of the products that you and I purchase every day. But fraud has a new enemy now and it is called Social Media. The social media sites like youtube, twitter, facebook and others are a great place for claims adjusters to spend time checking up on their claimants. And underwriters use them as well. In the case of the carpenter showing his employees working on a roof, he now has some explaining to do to his underwriter since he signed an application indicating that he does not engage in any roofing activities.

It is surprising how people are willing to incriminate themselves on these social media sites. Underwriters are now better able to identify the types of customers who are prone to fraud by studying their social media and internet footprints before they agree to write a policy for them. And of course today’s claims adjuster is finding the social media universe to be easy pickings for proving fraudulent behavior on some claims.

Over time, the fraudsters out there will be a bit smarter and in truth, social media is not the place to catch the real professional crook. But it is having an impact on helping to keep your insurance rates just a bit lower over the near term.

At Clinard Insurance Group in Winston Salem, NC, we work hard to help insurance consumers out there become better informed buyers. If we can help you with your home insurance, your auto insurance, your business insurance or even your life insurance, I hope you will 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 other articles which can be found in their entirety at www.InsuranceAnswerGuy.com.

New NC Auto Insurance Changes Could Trip Up Insurance Buyers

Effective 2/1/10, there are some little known statutory changes to the NC auto insurance policy that could trip up insurance buyers or even allow unscrupulous agents a way to sell you less coverage and pass it off as a better deal for you. Understanding the way the new law works and what it means for you is important to everyone who buys car insurance in the state of North Carolina.

The rule change has to do with uninsured and underinsured motorists coverage. You see, for many years now, the law has required you to purchase coverage limits for these coverages that are at least equal to your liability limits on your policy. So, for example, if you have liability limits for bodily injury of $100,000 per person, then if you purchase uninsured and underinsured motorists coverage, you would have to purchase at least $100,000 of bodily injury per person there as well.

What is important to recognize here is that over the past 2 decades, the cost of uninsured and underinsured motorists coverage has gone up several thousand percent. You can easily spend hundreds of dollars on these coverages alone. So now the law has changed and if you wish, you may carry lower limits on your uninsured and underinsured motorists than you do on your liability insurance. But really, it would rarely make any sense to do so. Consider that at any given time over 15% of all drivers on NC roads are uninsured and another large percentage is driving with the minimum allowable liability limits. And also consider that uninsured and underinsured motorists coverage is there to protect you from these people. Knowing all of this, I can’t see how it would ever make any sense to carry lower limits on your uninsured motorists coverage than you have on your liability coverage.

So I see two possible places that this change in the law could cause problems for people. The first case is the do it yourself insurance consumer. If you’ve read many of my blogs you will know that I never recommend a do it yourself approach to insurance, but there are places where you can purchase a car insurance policy without the help or advice of a professional. So these consumers are at risk for purchasing lower limits on their uninsured motorists coverage simply out of ignorance or because they think it saves them money.

The other possible problem would be if you had an unscrupulous agent quote your policy and that agent decides that he will just lower all of the uninsured and underinsured motorists limits on all quotes in order to have the lowest quote out there each time. This strategy would work for the agent since few people pay attention to the fine print. You would probably only discover what happened if you have an uninsured or an underinsured motorists loss. By then of course it would be too late.

There’s no question in my mind that almost everyone should have uninsured and underinsured motorists limits that are as high as their liability limits. The take away message for consumers is that they need to compare any auto insurance quotes carefully to make sure that they know exactly what they are buying.

At Clinard Insurance Group, in Winston Salem, NC, we work hard to help all of our clients become informed insurance buyers. If we can help you with your home insurance, your auto insurance, your business insurance or even your life insurance, please give us a call, 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 at www.InsuranceAnswerGuy.com.

5 Ways To Cut Your Auto Insurance Costs Without Sacrificing Protection

These days most of us are looking for ways to stretch our household expense dollars. One big drain on these funds is auto insurance. Her are some quick and easy tips you can use to help you find some savings in your auto insurance budget without putting your assets at risk.

How Far Do You Drive To Work? In the North Carolina Auto Insurance policy there are several different classifications for your driving habits. One focuses on the number of miles you drive to work each day. Of course if you don’t drive to work and your policy is classified that way you can get a reduction by changing the classification to pleasure use. Within the drive to work categories, there are two. One is for those who drive less than 10 miles one way to work and the other is for those who drive more than 10 miles one way to work. If you drive 10 or less miles one way to work, check with you agent to be sure that your policy reflects this classification. Likewise, if you have changed jobs or if your work location has changed recently, make sure you correct your policy.

Watch Those Deductibles. If you have comprehensive and collision insurance coverage on your auto policy, be sure to check them as well. Generally, you want your deductibles to be as high as you could handle in the event of a loss. There are some exceptions to this, for instance once you get to very high deductibles, the savings may no longer be worth it. Also, if you have a very old car and the collision and comprehensive costs are already very low then a high deductible just might not get you enough savings to be worth it. Still, many people have deductibles that are very low and can realize substantial savings by increasing them.

Pay In Full Discount. Some companies are now offering savings of up to 10% if you pay your auto insurance renewals in full. They have found that people who pay in full have less losses and thus should be entitled to a lower rate. If you can afford to do this, you should certainly take advantage of the offer. Some companies are offering as much as a 10% discount when you pay in full. Since there are not many places right now where you can earn a 10% return on your money, this deal is just too good to pass up if you have the money in the bank to do it.

Bundle Your Policies. Almost every insurance company will now offer you a substantial rate reduction if you buy both your homeowners insurance policy and your auto insurance policy from them. You should always take a look at this option since it is rare that you will find these two policies to be cheaper when purchased separately.

Safety Equipment Discounts. Check with your agent to make sure that you are receiving all available discounts for the safety equipment in your car from anti-lock brakes to airbags and automatic seat belts. Most companies apply these discounts by using the vehicle identification number on your car to discover exactly which safety features your car has. So it is somewhat rare for them to miss on these discounts. Still, you should check in with your agent just to be sure that you are getting all the safety discounts you deserve.

At Clinard Insurance Group in Winston Salem, NC, we work hard to make sure that all of our clients are informed consumers who are purchasing the best possible protection at the lowest possible cost. If you need help with either your home insurance policy or your auto insurance policy, please visit us on line at www.ClinardInsuranceGroup.com or call us toll free at 1-877-677-7557.

The source information for this article can be found at www.insuranceanswerguy.com

Car Insurance Marketing Cheap Tricks – This One Could Ruin You

In the world of cheap trick marketing gimmicks, this one could put the auto insurance consumer in a world of hurt. I recently saw an ad on TV by an insurance company advising the customer to go online and build their own policy. And the hook line was, you choose how much you want to pay each month and we will build your policy to that price. This sounds like the consumer is choosing their own price but the opposite is true.

As much as the online direct writing insurance companies would like you to believe otherwise, auto insurance is a complicated contract between you and the insurance company and there are many elements to this contract that make it a poor do it yourself project. How many online clients are going to take the time to read the fine print of the conditions, terms and exclusions of the auto insurance policy? The answer is very few. And those that do will not have the experience in the ins and outs of this industry to understand exactly how this will affect them after an accident or a loss.

If you fall for the marketing ploy that you can name your price and the online wizard will create a policy for you to match that price, you are immediately discounting the primary value of a car insurance policy. That is to protect your assets. The only people who should view insurance as only a price to be paid to keep the car on the road are those who have no assets and no dependable source of income. They are the only people in a position to walk away from their financial responsibilities if they cause and accident and injure other people or damage other people’s property.

So how will the insurance company write you a policy to meet your chosen price? Simple really, they will cut your protection down to the point where they can meet that price. And this may or may not reflect what you need to protect your hard won assets if you cause a large loss. Please don’t try and do it yourself when it comes to buying insurance. Choose an agent that can help you through the process. Better still, choose and independent agent who can help you access many different insurance markets to get you the exact protection you need and the lowest possible cost.

At Clinard Insurance Group in Winston Salem, NC, we work very hard to develop personal relationships with all of our clients. We take all the time that each client needs to discuss their own personal insurance needs to help create for them the right policy, not just one based on the lowest price. If you are tired of going it alone, or if you don’t feel your current agent is giving you all the help you need, please feel free to call us, toll free, 877-687-7557 or visit us online at www.ClinardInsurance.com.

The source information for this article was drawn from information at www.insuranceanswerguy.com

Automobile Replacement Cost Insurance, a NC Auto Insurance Policy Extra You Should Consider

You’ve probably heard it before; your brand new car drops about 20% in value the minute you drive it off the lot. Let’s face it, the first few miles you drive a new car are certainly the most expensive on a cost per mile basis. And if you borrow money to purchase the new car, you are even more vulnerable. If your new car is totaled, then a standard NC auto insurance policy will not protect you completely, but there is a way to cover yourself more fully.

I’m talking about replacement cost coverage on your new car. You may be familiar with this concept in terms of home insurance. If you house is burglarized and they steal your television set, if you have replacement cost coverage on your contents, then your insurance company will pay to replace your old TV set with a new one. But if your new car is totaled on the way home from the lot, without replacement cost coverage on your car (and most people do not have this protection), then you are paid the used car value of that car at the moment before it was lost. And this won’t be enough money to replace that car with another new one. This seems unfair and I can tell you, to most people who find themselves in this situation, it is unexpected.

Good news though, there is a simple solution. Most insurance companies can offer you replacement cost coverage on your new car. This means that if your car is totaled in an accident, the insurance company will pay for you to replace your vehicle with a brand new one of the same make and model. This is true even if the car is up to 5 years old.

Ok, you probably want to know what the catch is. And there are catches. First of all, this coverage will not apply to total loss by theft. And the insurance company will typically delete this coverage from your car after it gets to be about 5 years old. And, you must add this coverage within a short time of purchasing the vehicle brand new. Usually that time frame is 60 to 90 days. Last of all, you have pay for this additional coverage. The cost is usually around 15% more for your comprehensive and collision coverages.

If you are thinking about purchasing a new car, I would suggest that you seriously consider adding replacement cost coverage to that car on your North Carolina auto insurance policy. At Clinard Insurance Group in Winston Salem, NC, we have several insurance companies who offer this feature. If you have any questions about replacement cost coverage on your car insurance, or if you would like a free auto insurance analysis and quote, please feel free to call us, toll free at 877-687-7557 or visit us on the web at http://www.ClinardInsurance.com.

The source data for this article can be found at www.InsuranceAnswerGuy.com.

The North Carolina Personal Auto Policy – There’s A Hidden Gem In There

If you have a car that is tagged in the state of North Carolina, then you almost certainly have a NC auto insurance policy to cover that car. While car insurance seems like a necessary evil, there is a hidden gem of a coverage in there that might be something that could come in handy for you. At Clinard Insurance Group in Winston Salem, NC, we want all insurance consumers to be informed consumers so take a moment to read this short article to discover and inexpensive coverage that might be a big help to you someday.

The coverage that many people don’t know about but might be of great benefit to them is called towing and labor coverage. This is an add on benefit to your policy that will pay the costs of towing your car after a breakdown or accident, or pay the cost to of labor to have a mechanic come out to your vehicle breakdown site and help you get your car started again. So if you needed a jump start and had to call a mechanic for help, the labor costs associated with this would be covered and if they had to tow your vehicle, then the towing charges would be covered as well.

So what does this cost? In North Carolina the towing and labor coverage on your policy has three different limits so first of all you must choose the limit that will apply to any one breakdown event. Your choices are $100, $50, and $25. The cost per year, per vehicle are $6 for the $100 limit, $4 for the $50 limit and $2 for the $25 limit. Remember that in order to add this coverage to your policy, you must have comprehensive coverage or collision or both on that vehicle beforehand.

You might be thinking that this is not such a great deal because if you file a claim, then the insurance company will probably just raise your rates. Not true. Insurance companies in NC cannot raise your premiums for filing towing and labor claims. If you file too many claims, their only option is to remove the towing and labor coverage from your policy. High claim frequency for just towing and labor coverage will almost never impact the general underwriting opinion of your full auto policy in the company’s eyes.

So take a moment to pull out your auto insurance policy and check to see if you have towing and labor coverage. If you think this coverage is a good deal and might benefit you, call your agent and ask them to add the coverage. In some cases, the additional premium for adding this protection will be below the insurance company’s billing threshold so you won’t even be charged until the next renewal.

At Clinard Insurance Group in Winston Salem, NC, we specialize in helping families all across North Carolina with their insurance needs. If we can be of help to you, or if just want a no charge insurance “second opinion” on your car insurance or your home insurance, please give us a call, toll free, at 877-687-7557 or visit us on the web at www.ClinardInsurance.com.

The source information for this article was drawn from information on the blog at www.InsuranceAnswerGuy.com.

Car Insurance – Are you both under insured and over insured?

At Clinard Insurance Group in Winston Salem, NC, we handle NC car insurance for thousands of clients and in that time we have had clients come to us with policies written by other agents that just don’t make sense. Yes, it is possible and in fact common for people to be both under insured and over insured with their auto insurance policy.

Let’s start with the over insured problem. With the down economy, more and more people are keeping their cars longer and that means that they are driving cars that have less and less value. Yet few people call their insurance agent to update their policy to account for this. Since the collision coverage is going to cover the depreciated value of the vehicle in an accident, over time they are paying more to insure less. This results in over insurance and is quite often a waste of your valuable insurance dollars.

Now let’s take a look at the under insurance problem. This one is extremely common and much easier to understand. In North Carolina, car insurance is required by the state in order to obtain and keep your license tag. For this reason, many people buy the insurance just to be able to license the vehicle without thinking carefully through what they are buying. You should ask yourself, how much will it cost if I cause a severe, multi-vehicle accident? Then check your policy to see if you have enough liability coverage to pay for it all. Another way to view this might be to just ask yourself, “If I cause an accident that runs up a $450,000 (you pick the number) bill, how much of that do I want to pay for myself?”

Now to take my point to the next level, consider the dollar for dollar cost of liability insurance verses collision insurance. An average auto insurance policy in NC would cost $125 for $100,000 per person of liability insurance. That means each $100 of insurance protection would cost you about 12 cents. But collision insurance is much more expensive. If you are driving a car that is worth $10,000 and you are paying $140 a year for collision insurance with a $500 deductible, then your cost of insurance is $1.68 for each $100 of insurance. Which of these types of protection is more expensive? Collision of course and by a wide margin. Which one of these coverages is more important? I would argue that the liability insurance is more important. Here you are protecting yourself from a large, unknown amount of loss. If you get this one wrong you could lose your home, your retirement, your savings and your kids’ college fund. If you miss on the collision coverage, yeah you could lose your car but it ends there.

If you are unsure about your car insurance and would like some help understanding how best to spend your insurance dollars, please give us a call. At Clinard Insurance Group in Winston Salem, NC, we specialize in helping people all over NC with their NC auto insurance policies. You can reach us, toll free, by calling 877-687-7557 or visit us on the web at www.ClinardInsurance.com.
The source information for this article was pulled from the insurance answer guy