What Is Usage-Based Car Insurance?

Usage-based car insurance is known by a number of different names, including:

• Pay-as-you-drive (PAYD) insurance
• Pay-per-mile insurance
• Behavior-based insurance
• Telematics

These forms of usage-based car insurance are ones where your insurer calculates your insurance premium rates based on your car usage and how you actually drive your car rather than the way they think you'll drive your car based on their statistical data used during the underwriting process.

Traditionally, car insurance premium rates are determined by using lots of data that are meant to tell the insurance company what type of risk you represent to them.  This is done by trying to figure out how other drivers displaying your characteristics and driving habits are most likely to drive. There are also lots of other factors used to determine what level of risk you represent to your insurer. These may include:

• Age
• Gender
• Zip code
• Occupation
• Marital status
• Driving record
• Credit rating
• and other factors, depending on the insurer

How Usage-Based Car Insurance is Different

With usage-based car insurance, your policy premiums are based on how and how much you actually drive your car. As a safe driver, you should look forward to saving some money. Conversely, as a riskier driver, your premiums will be higher than your peers who are considered safer.

This type of insurance is relatively new and has been fairly slow to catch on with the public. One reason for this is the fact that people may feel it an invasion of privacy to allow their insurance company to track their driving.

 

 Different Types of Usage-Based Coverage

Some usage-based policies figure premium costs strictly on the number of miles you drive during the policy period. Even as a risky driver, you won't see a premium penalty unless a claim is filed against you.

Other policies are behavior based, meaning premium rates are determined by how and when you drive. Using a mobile app that works in conjunction with your smart phone, data can be sent to your insurer to tell them not only where and how many miles you drive, but also any risky actions you take. These may include:

• Talking on your phone while driving
• Fast accelerations
• Hard braking
• Speeding

As an alternative to the mobile app, some companies use a dongle that plugs into your car's on-board diagnostics port.

Not all insurers offer usage-based car insurance, but some of the best, such as Progressive, do.

Renter's Insurance: How Much Is My Stuff Worth?

If you're out there shopping for a Greensboro Renters Insurance policy, you're to be commended. You're in the minority in an area where making the right decision can have a huge financial impact on your life.

Homeowner's vs. Renter's Insurance

According to the Insurance Information Institute (III), approximately 97% of homeowners in the U.S. carry homeowner's insurance while less than 40% of renters carry renter's insurance. There may be several reasons that so many renters remain without coverage:

1. Some may feel that the personal property they have doesn't have a high enough value to warrant insuring it.
2. Some may feel the cost of renter's insurance is too high to justify this ongoing expense.
3. Some may not realize the benefits that come with a renter's insurance policy.

Is It Worth It?

Bringing clarity to the three above-listed concerns may be just what you need to justify your taking out Greensboro Renters Insurance coverage.

As far as total value of your possessions goes, you likely have much more in value than you think. Once you factor in all of your clothing, all of your furniture, all of your electronics, your books, dishes, kitchenware, etc., you likely have thousands more than you've considered. A typical renters insurance policy with a personal possessions limit of $30,000 would probably cover you adequately, but once you start adding everything up you might even want more protection.

Cost for a typical renters insurance policy is surprisingly low. According to the III, here in North Carolina the average cost for renter's insurance runs about $157 per year, which is only about $13 a month.

Considering what you get for that $13 per month premium payment is also to be seriously taken into account. Not only are your personal possessions covered against numerous threats such as fire, smoke, explosion, theft and other perils, you also have significant liability protection. This means if someone becomes injured while on your rental property and you end up getting sued for damages or medical costs, you have a certain amount of liability coverage. Limits for liability coverage are typically around $100,000, and this can go toward court costs, legal fees and any judgments you face.

For a few dollars more, you can increase policy limits by quite a bit. This may be the lowest cost, highest value insurance you can buy. One time use could pay back a lifetime of premium dollars!

Life Insurance Medical Exam: What to Expect

A life insurance medical exam is a way for your proposed life insurance provider to confirm the information you supplied to them on your life insurance application and to delve a little further into your medical history. A life insurance medical exam is typically conducted by a qualified medical professional such as a nurse, and need not be done at a hospital or clinic. In many cases, the exam will take place at your home.

Two Stages

There are usually two parts to a life insurance medical exam:

1. A verbal question and answer period with the examiner.
2. Standard measurements such as height, weight, blood pressure and heart rate (pulse). You will also likely be asked to give a blood and urine sample. The blood sample is to check things such as cholesterol, blood sugar, protein and HIV. The urine sample is to check for protein, glucose, HIV, creatinine and drug use.

The information derived from this two-stage medical examination will be compiled with the information from your insurance application and the statistical longevity information used by the insurer. All this will then be used to determine whether or not the insurer feels that you're qualified to be accepted as one of their insureds and, if so, your annual policy premium rate.

What's the Time Factor for the Test?

The examiner who comes to your location to perform your life insurance medical exam will bring everything they need to complete the session. The verbal medical history portion should take about twenty minutes, give or take, and obtaining the urine and blood samples should take just a few minutes more.

Why a Medical Exam is Required

There are several reasons insurers often require medical exams be undertaken by their prospective insureds. They include:

• As a verification for the information originally submitted on your application
• To get a full medical history. The exam questions go deeper into not only your personal medical history but also into your family medical history. If, from the information gathered, it's determined that you may statistically die earlier in life, higher premiums will have to be collected during the early years of the policy. Conversely, if it's estimated you'll live longer, early year premium payments will likely be lower.
• The exam may help uncover any underlying medical conditions of which you're not aware or that you may have not declared. It may also uncover any drug or nicotine use.

Homeowners Insurance: Taking an Inventory of Your Personal Belongings

If you're of a mind to get the most value out of your Greensboro homeowners insurance policy, you need to take care of an often overlooked detail. That's the creation of a comprehensive home inventory list of your family's personal belongings. You may have thought about doing this at some time in the past, but have neglected getting out your pen and paper and writing down the details. As an alternative, you could pull out your smart phone or video camera and make a complete documentary of what possessions you have in your home.

If you fall victim to a disaster such as a house fire that destroys your home and your personal possessions, a detailed inventory listing of everything that's been lost will be invaluable when making a claim on your Greensboro homeowners insurance policy. Having a detailed, up-to-date inventory list of your personal possessions can help in several ways:

1. Your insurance claim can be settled more quickly and more easily.
2. An inventory list can help you to verify losses you'll need to report on your income tax return.
3. Itemizing your personal possessions can help you in making sure you purchase and maintain the correct amount of homeowners insurance.

Where Do You Start?

Everyone knows that taking an inventory and documenting a list of your personal possessions is a good idea, but we also know it's easy to let a good idea slip by without taking the needed action to make it happen. Creating a complete possessions inventory can seem a daunting task, but it doesn't have to be. The trick is to START NOW!

You can start small, with just one room, and don't worry if you don't complete the inventory all in one sitting. A good plan can be to just do one room in your house per day, every day, until you've finished. Don't get overwhelmed. Even a partial inventory list is better than none.

Here are a few tips to consider:

• Record basic info on items such as where and when it was purchased, make/model, purchase price and serial number (if applicable).
• Record clothing by category, such as five suits, four pairs of jeans, 10 pairs of shoes, etc.
• Make special note of very expensive items (jewelry, artwork, furs, etc.) and make sure your policy covers them fully. If not, 
• add a floater.
• Store your completed inventory list in a safe, off-premises location.

4 Types of Insurance You Probably Don't Need

Some types of insurance you should have, such as life insurance, if you have a family depending on your income for their day to day living expenses. Some types of insurance you must have, by law, such as car liability coverage if you drive a vehicle on public roads in almost all of our United States. But some types of insurance are unnecessary and, although they may appear appealing when being described by an insurance salesman, you not only don't need them but they are likely to just be a waste of your money. Here's a list of a few insurance policies you're probably just better off without.

1. Child Life Insurance – child life insurance may look appealing at first because of its low cost and promised accumulating cash value, but that same money put into your child's education fund, savings account or even into your own additional life insurance coverage may be considerably more valuable. Life insurance is designed to provide financial protection to those depending on your income, and children typically have no income upon which dependents rely.
2. Flight Insurance – if you already have a life insurance policy in place, taking out extra coverage before flying in an airplane is redundant. Deaths in airplane crashes are relatively rare, but if you are unfortunate enough to suffer such an event, your standard life insurance policy already has you covered.
3. Rental Car Insurance - `buying extra insurance from a rental car company when renting a car may also be redundant, since your personal car insurance policy likely already covers you in a rental car. Double check your car coverage to make sure, and if you're not covered by your personal policy then the small fee charged by the rental car company may be worth the cost.
4. Auto Collision Coverage – if you're driving an old model car that's not worth a whole lot of money, you're likely better off forgoing the inclusion of collision coverage on your policy. This may also be said of the comprehensive portion of your policy. Instead, put the money you save on premiums in a car repair/car replacement fund to be used in the event your vehicle gets damaged or is stolen. For newer, more expensive cars, however, full coverage is probably your best bet.

These are just a few of the many types of insurance you can do without. Check here for more.

Car Insurance: What If Someone Else Is Driving My Car?

In the State of North Carolina, all vehicles being operated on public roads are required to be covered by at least a minimum of liability insurance. If you're involved in a car accident, either your car insurance company or the other driver's insurance should pay for damages. But what if someone else is driving your vehicle? Whose insurance pays then? As with many insurance questions, the answer to this one is, “It depends.”

Who's At Fault?

If someone else is driving your car and is involved in an accident, the liability for any damages falls to the driver deemed responsible for causing the accident. If the other driver is liable, their car insurance company will usually be responsible for paying damage costs.

If the person driving your vehicle is held liable, your car insurance company will usually be responsible for paying damage costs, with some possible exceptions. In most instances, your vehicle insurance applies to your car more than it applies to you as a driver. If your car insurance limits are not sufficient to pay for all the damages and the person who was driving your car has their own car insurance, their policy may contribute secondary payments after your policy limits are reached.

The Exceptions

There are three situations in which your car insurance may decline paying for damages caused by someone else who was driving your car:

1. The person driving your car and held liable for causing the accident is found to have been doing something illegal at the time. This could include driving without a valid operator's license or driving under the influence of drugs or alcohol.
2. The person who was driving your car was specifically excluded on your policy. You may have excluded someone from your policy because of their poor driving record that you knew would cause an increase in your policy premiums.
3. If someone is driving your car without permission and has an accident, your insurance company may refuse to pay a claim.

Other Considerations

When you lend your car to another driver, you are taking responsibility for their driving and if they cause an accident your insurance rates may go up because your insurer now sees you as a higher risk policyholder.

Your policy's deductible will need to be paid when making a claim. As the policy owner, you'll have to decide between you and the at-fault driver who will pay this.

Woodpecker Damage: Does Insurance Cover It?

There are lots of things that your standard homeowner's insurance policy covers. Also known as an HO3 Special Form, the HO3, which is what most homeowners carry for their homeowner's insurance coverage, is an “open perils” policy. This means that it covers all perils except those specifically listed in the policy's exclusions section.

A typical exclusion found in most HO3 policies is for: “Birds, Vermin, Rodents, Insects,” so, if you're wondering if woodpecker damage is covered in your policy, the answer is likely, “No.”

The reason woodpecker damage, or any other bird, vermin, rodent or insect damage, isn't covered by homeowners' insurance policies is because said damage is considered by insurance companies to be preventable. Their position is that prevention is possible by observing proper maintenance procedures.

Insurance Isn't For The Birds!

Some serious damage can occur when a persistent bird like a woodpecker decides to go to work on your home. He can drill holes through your siding, your window frames or your roofing. These holes can allow water and insects entry to your home and fungus and mold won't be far behind if left untreated. In addition to surface damage, structural damage can actually occur if woodpeckers spend significant time working on support beams.

While your homeowner's insurance doesn't cover woodpecker damage, there are things you can do to fix the damage and to prevent the same thing from happening again. Getting rid of insects, which woodpeckers feast on, can be a big help. Woodpeckers, however, use the noise that their pecking makes as a way of attracting mates, so different strategies need to be undertaken to get them to leave your property and go somewhere else. One idea that's worked for some is to place imitation owls or hawks in the areas where the birds have been causing trouble.

What About an Endorsement or Rider?

In most homeowner's insurance policies, even perils that are contained in the exclusions section can be covered by adding an endorsement (or rider) to the policy or adding an additional policy. Two common examples of this are the addition of flood insurance and/or earthquake insurance to your standard coverage.

An endorsement to cover the damage created by “Birds, Vermin, Rodents, Insects,” might be possible to obtain from some insurers for a price, since coverage for just about any peril can be negotiated for the right premium increase. Ask your agent.