How to Rewrite Your Car Insurance Policy to Save Money

Car insurance is something every driver using public roads in North Carolina is required to have according to state law. How much you pay for your coverage, however, can vary widely, depending on numerous factors. The car insurance industry is extremely competitive, especially in this age of instant Internet quotes, and policies can be somewhat confusing to understand. Having a trusted insurance agent to advise you on what’s best for your specific personal car insurance needs can help you in finding the best coverage for the best price and from an established, dependable insurer. For those in the know, there are many ways you can rewrite your current car insurance policy and save some money at the same time. Consider these tips for lowering your auto insurance premium costs:

• It’s always a good idea to get several new insurance quotes when certain changes in your life occur since these may affect your risk profile and, therefore, your insurance rates. Such events may include attaining a certain age (such as age 25 or age 55), getting married, retiring, getting a new job (some occupations may bring a rate discount), moving to a new location or significantly shortening your daily driving commute.
• Maintaining a clean driving record with no accidents, moving violations or insurance claims may qualify you for a safety discount.
• Combining your car insurance policy with the same company that carries your homeowner’s and life insurance policies may give you a discount on your coverage rate.
• Increasing the deductible amount on your policy will certainly lower your premium rate. Paying your premium annually rather than in monthly installments should also provide you with a price break.
• Decreasing coverage on older cars will save you money. The rule of thumb says that if the premium amount you’re paying for your comprehensive/collision coverage is greater than 10% of your car’s value (check the Kelley Blue Book), you should probably drop that part of your policy coverage
• Many insurance companies factor in your credit scores when calculating premium rates. Maintain a good credit rating and, according to statistics, you’ll likely have fewer accidents!

There are plenty of other discounts available from various car insurance companies, most of which you may never know about unless you ask. Students with good grades or driver’s education credit, for example, may also qualify. Be sure to ask your agent.

Life Insurance: When to Change or Replace Your Policy

There are several reasons for changing or replacing your current life insurance policy with new coverage. Some of these may include:

• A new policy may provide you greater coverage or a higher death benefit at a similar or even lower cost than you’re now paying.
• You may have more confidence in a different agent or company than you originally selected.
• Your life insurance needs may have changed as a result of life changes you’ve experienced since your current policy was obtained.

Going From Temporary to Permanent Coverage

One of the more common reasons given for replacing a life insurance policy applies to those individuals currently covered by a temporary term life policy. You may now have elected to convert to a permanent form of coverage, such as whole life. Often, a term life policy is taken out to protect a young family because of the combination of a high death benefit and affordable cost. Once a family’s financial circumstances have improved, however, a permanent form of life insurance may be desired because of the benefits provided that are not available through term life. These include lifetime coverage at a level premium amount (regardless of changing health conditions) and an accumulating cash value.

Many term life insurance policies can be easily converted to some form of permanent coverage, such as whole life or universal life, and there are several good reasons you may choose to do so. Failing health conditions that may prevent you from qualifying for a new term policy when your current term coverage expires is a big one. When converting your term policy to permanent insurance, you won’t be required to undergo a health exam as long as you convert before the stated conversion deadline and you haven’t yet reached the age of 75.

Life’s Big Moments

It’s recommended that you review your insurance policies annually to revisit the coverage you have in force and compare this with your current insurance needs. If, however, you experience one of life’s big moments, such as getting married (or divorced), having a new baby (or grand baby), buying a new home or coming into a large inheritance, your insurance needs will almost surely change. In that case, you should consult your trusted insurance broker or financial advisor to help determine what alterations, if any, should be considered. Often, your current policy, with some slight upgrades, will prove sufficient and brand-new coverage won’t be required.

 

What is Water Backup?

Water damage is one of the most common reasons for homeowners insurance claims here in the Triad, including water backup, damaged plumbing and, although not covered by standard homeowners insurance policies, flooding. In addition to water damage being a common cause of homeowner problems, it’s also one of the most misunderstood portions of a homeowner policy as to what’s covered and what’s excluded. We’ll try to shed some light here on this sometimes confusing area.

Water Backup Defined

 

Under normal conditions, when you run a water faucet or flush a toilet in your home, the water travels down and away from the home either to a sewer pipe or septic tank. If something happens that causes the water to stop flowing, usually involving some type of blockage, it will cause a water backup. The water that’s supposed to run down the drain has been prevented from doing so and, instead, travels back up through the drain and into your home. Often, this water will cause damage to the building structure and/or the personal belongings located therein.

As long as the water that has backed up into your home originated on your home’s premises, it’s likely covered by your standard homeowner insurance policy. Examples of this include:

• The drain for your sink, toilet or shower becomes obstructed and the water overflows onto the floor

• Your house drain becomes obstructed by a tree root out in the yard and the blockage causes water to back up through a toilet or an inside drain 

Many insurance companies offer optional, expanded coverage called Water Back Up & Sump Pump Overflow coverage as an endorsement on your standard policy. Suppose you have a sump pump in your basement designed to remove sub-surface water accumulation from around your home’s foundation and this pump becomes overwhelmed by the volume of water it is having to deal with. If the water backs up into your basement, this optional coverage may help pay for the losses incurred. If a sewer backup from the city’s pipe out in the street becomes obstructed and causes water to overflow through your household drains, this should also be covered.

Water that comes into your home and causes damage will generally not be covered in your standard policy if it originates from anywhere outside the home. This includes flood water or any other water coming in from outside the home, including surface or sub-surface water.