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.

Garage Insurance – Body Shops and Spray Booths

The automobile body repair business is changing quickly. This industry has seen rather slow and evolved changes over the past 30 years or so but recently the pace of change has accelerated. These changes are shrinking your marketplace of clients as well as constricting how you perform your work. Staying ahead of these changes should give you a strong edge over your competition and help to insure that you remain in business for years to come.

One of the biggest systemic changes to affect body repair shop owners is the shrinking customer base. For instance, the high expense of replacing air bags in wrecked cars, combined with the greater availability of less expensive vehicles means that many wrecked cars are now considered a total loss by the insurance companies and as such are not repaired.

In addition, there are changes taking place in the auto body repair industry that drive the way that you operate. There are both environmental and safety issues that will force body shop owners to invest in new equipment and spray booths. Each step forward requires that you carefully evaluate the costs of improvements against future income.

Recent changes to the International Fire Code and the National Fire Protection Agency (NFPA) codes that the vast majority of states and local jurisdictions use now mandate that spray paint booths and mixing rooms have automatic fire suppression systems. This has been a substantial change, resulting in greater protection of spray painting operations, but it increases the cost of the spray booth system. Existing manufactured booths can often be retrofitted with automatic suppression systems, but even that expense can be high. These systems fall squarely in the realm of life safety of those who must work in and around the spray painting operations, where explosive fires are rare but very severe.

The U.S. Environmental Protection Agency has made a new rule, National Emission Standards for Hazardous Air Pollutants (NESHAP) (Subpart HHHHHH), that mandates by January 10, 2011, those that engage in spray applications to motor vehicles must comply. These standards also mandate a spray booth that contains and filters the emissions from spray operations, as well as spray guns that comply and training to the operators of the equipment. The point of this regulation is to protect the environment, but it does mandate the use of an approved spray paint booth. A summary of these regulations may be found on the Internet at http://www.epa.gov/ttn/atw/area/paint_stripb.pdf and http://www.epa.gov/ttn/atw/area/autobodybs.doc.

All of these choices will also drive your insurance costs. If you take the time to keep your spray booth up to date and protect both your environment and your employees, then you will be able to qualify for body shop insurance programs that will offer you the best rates and wider protection. Over time, these changes will begin to pay for themselves in reduced insurance costs.

At Clinard Insurance Group, in Winston Salem, NC, we want all of our clients to be informed insurance consumers. We specialize in helping automotive repair and body shops all across North Carolina and South Carolina with their insurance needs. If you need help with your garage insurance, your workers compensation insurance or any other insurance needs for your auto repair or body shop, please call us, toll free at 877-687-7557 or visit us on the web at NC Garage Insurance Helper.

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

Plumbers Insurance – Don’t forget the Hired and Nonowned Auto Coverage

If you own a plumbing company then more than likely you travel to and from jobs in a company owned vehicle. Putting your truck in the company name is most often done for tax reasons. But have you evaluated the insurance reasons for doing so? If so, did you remember to insure the vehicles that you don’t own? Failing to do so could cost you your business. But the good news is that the solution is cheap and easy.

Ok, so you have your trucks insured on a commercial auto insurance policy. Hopefully you spent some time with your agent and you set up limits that are high enough to protect your company from a catastrophic loss. But there is one detail to consider when setting up the business auto part of your plumbing insurance program. It’s pretty simple really. You can be held liable for accidents caused by vehicles that you don’t own. The easy example is a vehicle that you rent in the name of your company, or with a company credit card. But while that may be a rare event, consider that when you send an employee out on a company errand and they take their own vehicle, then your company can be held liable for damages to a third party caused by your employee on that errand. So how do you take care of this exposure to make sure that your plumbing company is protected?

Simply add hired and non-owned liability coverage to your business auto insurance business auto policy. The coverage is very inexpensive, rarely costing more than $150 a year. You may already have this coverage on your policy. To check, simply pull out your commercial auto policy declarations sheet and look at the symbol showing beside the liability limit. If the symbol is a 1, then you have liability coverage for any auto.

At Clinard Insurance Group, in Winston Salem, NC, plumbers are our specialty. We want all of our clients to be informed insurance consumers. If you need any help with your policy, your general liability insurance policy, or your workers compensation insurance policy, please visit us on the web at www.LowRatesForPlumbers.com or call us toll free, at 877-687-7557.

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

Lawn Care Business Insurance Basics

If you are thinking of starting your own lawn care business, or if you are planning to grow your existing one into a more viable and legitimate business, one of the hurdles you will need to cross is the insurance puzzle and how to solve it for your particular company. Lawn care companies have some special insurance needs so here is a basic primer on the types of insurance policies that you should consider for your lawn service insurance program.

This guide should serve as an introductory overview of lawn care insurance. For more detailed information on any of these policies or coverage types, please contact our office and we will be happy to give you more one on one personal help.

Liability Insurance – It won’t take long in your business before one of your commercial clients asks you to prove that you have liability insurance. This is the most obvious coverage type and the one that lawn maintenance companies usually first purchase. This is designed to provide you with protection for losses that you cause in the operation of your business for which you are legally obligated to pay.

Workers Compensation Insurance – This policy is often skipped because in NC the law says that you don’t have to purchase a workers compensation policy if you have less than 3 employees. What people fail to realize however is that if you don’t purchase a policy, then your company is on the hook for paying all claims as though you were the workers compensation insurance company. Don’t skip this coverage, one bad accident could put you out of business and ruin all that you have worked so hard for. One last trick, if you have only workers who mow and who don’t do anything else, you may be able to classify them under a code known as parks noc and get a much lower rate. For more information on this tip read my earlier blog here.

Equipment Coverage – This protection comes in two types. Coverage for equipment and coverage for hand tools. Most lawn care business purchase the equipment coverage for mowers, decks, snow blades etc but don’t often purchase any coverage for hand tools.

Business Auto Insurance – If you are titling your vehicles in the company name, then you need a commercial auto policy for those vehicles. Don’t forget to include your trailers on this policy as well.

Bonds – In NC you will need a bond to work on irrigation systems and it is very possible that by January 2011, a landscaping bond may be required. If you are strictly a lawn mowing service, then you may be able to avoid purchasing license bonds.

Disability Insurance – What happens if you become injured and can’t work? Who will do the work and who will run your business? Disability insurance is a good solution for you to solve this problem. Most lawn care companies don’t remember to cover this exposure and the failure to do so has fun a few out of business.

It’s clear that buying insurance for a lawn care company is a complicated and specialized process. You need an agent who specializes in landscapers insurance, and one who can help you navigate the maze of policies and underwriting rules. At Clinard Insurance Group, in Winston Salem, NC, we specialize in helping all kinds of landscapers with their landscaping insurance all over North Carolina. We can help you develop a plan that protects your business and saves you money on your lawn care insurance policies. If you own a mowing service in NC, then you owe it to yourself to call us, toll free, at 877-687-7557 or visit us online at www.LowRatesForLandscapers.com and we will be happy to help you.

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

Your Homeowners Insurance Policy and Hail Damage To Your Roof – A Warning

It’s Spring here in beautiful North Carolina and with the flowers comes the sudden and violent thunderstorms that produce hail. This hail has the potential to damage your roof. The hail also creates an opportunity for unscrupulous companies to try and take advantage of you. This blog will put you on notice to their tricks and tell you how to avoid their scam.

If you have a standard homeowners policy in NC, then you will have protection for your losses if your roof is damaged by hail. These claims rarely run into any difficulties and we process them quite frequently this time of year. But lately, we have been warned by our company claims departments that there are some scammers out there creating a bit of misery for homeowners in our area.

Here’s how they operate. After a hail storm, these roofing contractors will visit your home and offer to inspect your roof for hail damage from the recent storm. They always find that your roof has been damaged and needs to be replaced. If there was no damage to begin with, they manufacture some evidence to convince you. Next they assure you that your loss is covered by your home insurance policy and they tell you that they work with your insurance company already and can go ahead and get started right away. This is important they say because water could enter your home during the next storm and then your damages are really going to sky rocket. In order to get you started right away, they have you sign a contract which obligates you to pay for their work. You can bet that their rates are much higher than the market will usually bear but they convince you to ignore pricing because the insurance company will pay for it anyway.

The problems that this causes for homeowners are twofold. First of all, in many cases, there is no real damage to the roof and when the insurance company gets out there to inspect the claim, they find that there is no hail damage and thus no protection from the homeowners insurance policy. This leaves the homeowner stuck with the bill to replace a roof that didn’t need replacement. The other problem is that even if there is damage and the roof did need replacing, the insurance company may not agree to pay for roofing rates that are above the market rates and this leaves the homeowner holding the bag on the balance of the contract costs.

So how do your protect yourself? It’s easy really. Just don’t sign any contracts for roofing repairs until you have filed the claim with your insurance company and an adjuster has been on your roof and inspected the damages and discussed them with you. Don’t rush into a contract with the roofing company that knocked on your door. Have a patient, careful discussion with the claims adjuster before you commit to anything.

At Clinard Insurance Group in Winston Salem, NC, we work hard to help all of our clients become informed and knowledgeable insurance consumers. If we can help you with your home insurance, your auto insurance, your business insurance or your life insurance needs, 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 at www.insuranceanswerguy.com.

Electrician Work Comp Insurance – Pay As You Go, Saves The Cash Flow

Electrician insurance plans should all include a workers compensation policy unless of course you work alone and have no employees. And work comp policies can really punch a hole in your cash flow if not handled correctly. For more information on this, read my blog on the audit trap. In addition, there come times when work is hard to find and you may experience a drop in your cash flow. What if there were a program that would adjust your premiums to match your current work load and cash flow?

In fact this program exists and is available today. With a little understood tool called pay as you go, you can have your income cash flow better match your workers compensation premiums. Now understand that not every company that writes workers compensation policies for electricians can or will offer this feature, but if you can find one that does and if their price is right, this can be a nice benefit for electricians.

Let’s look at the mechanics of this type of work comp plan. Of course the details will vary from plan to plan, but the very best of them will send you an email or a mail reminder each month. You then log on to their web site and enter your payroll totals for the past month. The web site will then calculate your premium for that month and you can pay your bill on line right then and there with a credit card, or the system will generate a paper bill which is mailed to your office. What this means for you is that now your workers compensation expense tracks your payroll with only a 30 day delay. And this short delay means that your workers compensation expenses will more nearly track your revenue and mean less wild swings in your monthly cash flow.

Ok, there are a few things to watch out for here. First of all, there are some payroll service companies out there offering pay as you go workers compensation to go with their payroll service. On the surface this sounds great but there is a problem with this approach. One huge factor in your workers compensation insurance costs is your experience modification factor. And you need to work proactively to protect that mod to keep future costs lower. Companies that specialize in payroll services and sell work comp as a sideline are rarely as good at keeping claims costs low as companies whose prime mission is workers compensation insurance. These dedicated work comp companies will often have nurses and case managers on staff to help reduce your overall claims costs. And keeping your claims costs low will keep your rates low over time. To learn more about this read my blog on protecting your experience mod.

One last thing to mention here is that the pay as you go feature offered by some companies is often only available to electricians whose premium exceeds a certain level, often as high as $5000. There are a few companies out there who can offer this feature at a much lower premium level, but you will need to find an agent who specializes in electrician’s insurance to find them.

At Clinard Insurance Group, in Winston Salem, NC, we are the electrician insurance specialists. We have companies that can write pay as you go workers compensation policies for electricians with annual premiums as low as $1000. If we can help you with any of your electrician insurance policy questions, please call us, toll free at 877-687-7557 or visit us on line at our electricians’ insurance program policy page.

Some of the source material for this article was drawn from other blog articles which can be found at www.InsuranceAnswerGuy.com.