Passions in Life and Insurance Tips

A good friend of mine told me to today that he envied me. He said that he wishes he could pursue his passions like I have. However, to be honest, I had never thought of the fact that I am one of those lucky people who do get to pursue something that I feel passionately about.

When people think of pursuing passions, I suppose thoughts come to mind such as sailing across the seas, climbing Mount Everest, or motorcycling through Europe. I think that is an over romantification--I just made that work up apparently according to spell check--okay, a romanticized notion of pursuing a passion. You see, we all have to eat and usually this has a cost associated with it. And that cost is usually covered by something we define as work. And yes, I am one of the lucky people who get paid to pursue my passion.

You are probably asking yourself how can selling insurance can be a passion. Well, my real passion is helping people. While I don't operate a food bank or homeless shelter, I do try everyday to make people's lives a little easier by helping them face the risks they have for financial loss in the best way possible. I guess you could shorten that by simply saying, “saving money on their insurance.”

I remember when I decided to go into sales. I was an adjuster handling large liability claims. I had just driven to Pantego, NC to pay a claimant policy limits on their claim. That means I was paying the maximum I could; it was the total amount of coverage that the insured driver had purchased. I showed them the copy of the policy verifying the amount and gave them a check for that amount. Thinking I had done the best for them that I could, they proceeded to cuss me out, and then said they were going to get an attorney and sue. I tried to explain to them that they received all the money available, and the insured driver had died in the accident and really had no estate to go after. However, they continued to curse at me.

Later that day, I went to an agents office. A new client was there exclaiming how appreciative she was that the had saved her $20. I thought..Hmm, maybe I would like sales better.  And later in my career I had a chance to become an independent agent which allowed me even more ability to find the best possible options for my clients. That makes me happy.

I say all this to explain how I pursue my passions in life and in my business. Along those lines, I want to share some ways to save money very easily on you insurance. These thing usually work no matter the company.


1. Raise your deductibles. There can be a dramatic effect depending on the circumstances. I recently ran the numbers for a client and showed him he would have saved $2300 over the last 12 years had he had a $1000 deductible on his home owners instead of $250. On auto, I have seen client insist on a $0 deductible on comprehensive even though it may cost them $400 a year to make sure the didn't have to pony up any money in the event of a windshield break.


2. Pay your bills annually and online. Especially with auto, most companies give a discount for paying in full in the area of 7 to 10%. The companies like to get the money up front so they can start investing it and not don't have the expense of billing. And you are more likely to keep your policy for the entire year so they give you an incentive to do so. A win-win for everybody.
     I'm always amazed at the number of people who like to come by my office and pay their bill. With the cost of gas, and wear and tear on their car that has got to add $5 to the cost of each payment. Instead, jump online and pay with a credit card you get reward points, save on gas and stamps, and let your money work for you another month. Of course, I do suggest paying your credit card in full and not carrying a balance if at all possible.  Which leads me to...


3. Maintain a good credit record. There is a statistical correlation between credit score and number of claims. Almost all companies use credit as a factor in rating. The better your credit the better your rate. This is one of the biggest factors you can control, more incentive to pay all your bills on time!


4. Multi-policy discounts. If you can qualify to have your Home and Auto insurance with the same carrier it is usually the best option. Especially in ENC !


5. Consider the cost of insurance BEFORE making a purchase. I am the one that has to deal with the aftermath when that shiny new car spikes your insurance premium or the big house out in the country costs a lot more than your little house in the city. Call your agent before you make the decisions so you know the total cost.


6. Improve security. Smoke detectors, dead bolt locks, carbon monoxide detectors, fire extinguishers, and security systems can literally save your life and in the process qualify you for more discounts.


7. Have an independent agent. Yeah call me impartial, but it's the truth. If I am doing my job correctly, I'm finding you the best combination of rate and coverage for you and not just selling the one company I work for (sorry captive agent friends!)


8. Check the financial ratings of the insurance company. Just like the companies check your credit, you should check theirs. If a company has a less than stellar rating then they apparently don't have as much money in the bank to pay future claims. If they are selling insurance cheaper yet are rated lower you savings my be only in the short run.




Want more financial advice? Give me a call!  As I've stated, I'm passionate about it!

Cline's 8 Rules for New Drivers

First, understand that I am not your normal fuddy duddy insurance agent. I have a need for speed. I couldn't wait to get my license when I was 16. I have a very quick motorcycle, I race cars at places like Daytona and Watkins Glen. I had five car wrecks before I was 19-years-old. So, I both know what I'm talking about and I remember being in your shoes. I'm sharing this stuff to help you out, and hopefully it'll help in both keeping your insurance premium at a manageable price and keep you alive as well! Here goes:

1. What ever happens is going to be your fault! There is a prejudice against young drivers, sorry but that's how the world works. If you are involved in an accident, you are more than likely going to be blamed. Everybody in your car could say you had the green light, but the middle aged person that hit you is going to get the benefit of the doubt and you will get the ticket! One reason to be extra careful.
2. You will get pulled over before everyone else! A whole row of cars can be going the same speed and you will be the one pulled over. Again, I'm sorry, but that's the way it works. Double this if you are a cute girl, the day after your tag expires some cop is going to pull you over. It happened all the time to my daughters! If you do get a ticket don't try to hide it by not telling your parents and paying it your self. Tell your parents and call me, I might be able to help you out. If you pay it yourself your rates are probably going to go up and your parents will call me wanting to know why the rates went up. I will then tell them you got a ticket and stuff will hit the fan!
3. You are an Inexperienced Driver--admit it! Yeah, I know you have had drivers ed and one year of a learners permit but it is not the same as years of experience. Your insurance premium is 3 times higher than an older person, but you are more than four times more likely to have an accident. The day I got my license I borrowed my Mom's old station wagon to go pick up my girlfriend and take a ride. With in a half hour I was going the wrong way on a one way street. I just had not been on that road and didn't know it was one way. You learn by mistakes but mistakes in a car are costly. BE CAREFUL!
4. Watch out for everybody else! Ok, I have told you that you are not the best driver because you don't have experience, but there are people out there worse than a brand new driver! Here are some things to be on the look out for:

• Big (Buicks, older Cadillacs, Lincolns, and Crown Victorias) cars where you can't see the drivers head! That means it is some person about 100-years-old and they can't see you! Give them plenty of room

• Brake lights in front of you. First of all, give people plenty of room, you remember the rule, one car length for every 10 miles an hour. When you do that, people will pull in front of you, and now you've got to back up some more. Back to the original point, if the car in front of you has brake lights on you need have your foot on the brake pedal slowing down. I can't count the times I have heard “it wasn't my fault, they slammed on brakes in front of me.” Wrong! It was your fault, those brake lights told you they were braking, now you start braking.
  
• Don't let somebody wave you through traffic! You know, you are trying to get out of a parking lot, turning left across traffic, and there is a line of cars stopped in the lane in front of you. The nice lady in the Buick (that her head doesn't come above the seat) stops early and waives you through. You are in a hurry so you happily go though,  and WAM, you get hit by a car coming down the other lane that you couldn't see because of Grandma's big Buick. Grandma wasn't looking back there and didn't know it was coming. I just look straight ahead in those situations or wave back at Grandma and motion here to go on.
  
• On the interstate be very careful passing, people are using the cruise control and forget to look when they want to change lanes. Watch them as you are passing.

5. Drinking! Ok, we all know you aren't supposed to be drinking, and I am sure you will not yield to peer pressure and try your first beer at a party. BUT IF YOU DO, don't make the problem worse by driving home. Remember the rule about getting pulled over? Yep, this is when you will get pulled over or worse, have an accident.
   

   Who Looks good in a Mug Shot?

   (Parents don't read this next part) Call your parents tell them you have a stomach virus and you can't drive home, get a ride with somebody else (who hasn't been drinking of course) have them pick you up. Anything is better than driving!
6. CELL PHONES! Do I have to show you pictures of all the young people who have been killed because they were distracted by talking or TEXTING​? You might as well drink a case of beer and drive, it is that dangerous. Honestly, I don't even like using bluetooth. If I am having a conversation with someone else, it distracts me way more than if they are in the car with me. Put the cell phone where you can't reach it to remove the temptation. It's too easy to be at a stop light and decide to take a "selfie" or send a text. Next thing you know you have rear ended the person in front of you or veered out of the lane because you had to finish the text.
7. Bad weather changes everything. If it is raining or snowing or there is ice on the road it makes everything worse. Again, I can't count the times I have heard “ I hydroplaned/slid on the ice/skidded on the wet pavement--it wasn't my fault.” Wrong, it is your fault and you get a ticket for DRIVING TOO FAST FOR CONDITIONS.
8. This one is for PARENTS (kids don't read). Ok, you have given your kids a curfew? What do you do when they are 5 minutes late? Lower the boom because there is a zero tolerance policy at your house? NO! That trains them to drive like a bat out of a hot spot to get home to avoid the wrath of parents. Give them some tolerance, and when they get home late hug them and tell them how much you love them and they almost gave you a heart attack because you were worried sick! I find guilt is a better motivator! BY ALL MEANS, DON'T TEXT THEM WHEN THEY MIGHT BE IN THE CAR! And, set a good example by you not texting in the car.

So what is your reward for following these rules? MONEY! No, I'm not going to give you a reward but you won't be paying me as much money for your insurance. Even years from now, when you are out on your own, your driving record from now can haunt you. The cheaper your insurance is the more money you have to spend on fun stuff!

Hey, call me with questions!

252.756.5200
ClineHallAgency.com

Stuff I like on the internet.

I don't channel surf but do surf the internet.  I find a lot more interesting stuff out there targeted to my unique interests.  Here's some things I have recently found and blogs I frequent:

http://www.reelhouse.org/mos/urbanoutlaw/urbanoutlaw   Great Video on old Porsche's and really interesting guy that is passionate about them

http://www.marksdailyapple.com/#axzz2DhsxqL00  I call this guy "my Guru"  I have been trying to eat this way for the last couple of months and feel Great!

A collection of financial philosophers (for the lack of a better way to describe them)  most of the stuff is extreme but I like to read and glean some ideas,

mrmoneymustache.com

http://earlyretirementextreme.com/

http://www.bravenewlife.com/

http://www.jamesaltucher.com/ (weird but interesting)

http://jlcollinsnh.wordpress.com/ (most sensible and well rounded of these extreme guys)

Ok, some motorsport links:

http://www.jaylenosgarage.com/

sportscardigest.com

http://jalopnik.com/

https://www.motorcycleclassics.com/

Other stuff

http://artofmanliness.com/

http://www.marcusbrotherton.com/

That's just some of the places, hopefully you might enjoy them.

Thanksgiving after Thanksgiving

Perhaps it is a Thanksgiving theme I have going here,  I am finding joy in the little things in life.  Last night I found a Gear Wrench that I has lost for over a year and I had to post that newsworthy item several places!

That happiness I felt over something worth $5 got me thinking.  What makes us happy?  Well, I recently bought the above floor mats for my car.  I have wanted floor mats like this since seeing them advertised in Road & Track since I was a kid.  Yeah, they are expensive (at least to me, tightwad I am!) but they are made right here in the south!  And anyway, it was my car's 10th birthday.  Yes I'm that weird, I remember when I bought my car.  Anyway, makes me happy when I get in my car.

I also am happy when I walk into my garage and see my restoration project of a 1973 Honda CB350F, hmm something else I wanted since I was a kid.  Are we seeing a them here?

Am I shallow?  Maybe. But I kind of think that if these little things make me happy it's because so many big things in my life are doing well as well.   Last night Sarah posted this pic on facebook

It's my wife's dad sitting on my motorcycle.  Sarah is excited about seeing him at Christmas.
Vickie and I just recorded "A Charlie Brown Christmas" for our granddaughter's Birthday (it isn't until Saturday so don't anybody tell here).   Those things make me happy.

Ok that's all I have time for, time to go make other people happy!

Deductibles My dear Watson!

Ok any body get my nerdy reference?  I read all the Sherlock Holmes books when I was a kid and I love the new show Elementary .  Anyway, let's talk about deductibles on your insurance.

I recently had a friend call in with a windshield claim and he was upset that he had a $100 deductible. He told me he though I had sold him a good policy and why did he pay me thousand of dollars a year and still have to pay a deductible.  Well her is the deal.

The higher the deductible the lower your insurance rate. In this case he saved about $30 a year, he has had 3  or more cars insured with us  for 10 years and this is his first windshield claim. Let's do the math, we will be conservative and say on the all three cars he has saved a total of $50 a year for 10 years so he has saved $500 so he has $400 left in his imaginary wallet after paying this claim.  I think that was a good agent, saving him $400, heck I make more money with lower deductibles, I was looking out for my client-not me.  How often does one have a windshield claim? An industry expert tells me it is a 5% chance of having a windshield claim in any given year.  That means once in 20 years for a single car.

The numbers vary, you won't save as much with a higher deductible on a Camry (pretty low insurance cost anyway) but more on a Corvette (pretty high insurance cost) the savings is  a percentage of  the base rate.

On property insurance (homeowners, rental buildings, etc.) the saving can be HUGE.  I recently insured an apartment complex and the difference between a $5,000 dollar deductible and $2,500 deductible was, wait for it, $2.500.  That's a no brainer every year they don't have a claim they save $2,500.

"Wait a minute" you say, "that's why I have insurance, to take care of things whenever I have a problem".  I'm going to tell you a secret, insurance companies are in business to make money and if you have a lot of little claims you are labeled as claims conscious and you get dropped like a hot potatoe!

What about that neat vanishing deductible we here a couple of the famous fictional insurance spokes people (what's wrong with that statement anyway!) speak of?  Listen to the fine print!  You pay extra for that! It is just a bell and whistle for the mathematically challenged.  The companies know they will make more money if you chose that vanishing deductible. Don't play their game, keep your money!

If you want some more advice on deductibles you can do a couple of things, watch our youtube on it or give on of our agents a call.

We are happy to represent these fine companies:  Erie, Auto-Owners, GMAC, Safeco, Foremost, and more!

I traded cars on the weekend! OH NO!!!!

I get frantic phone calls from clients almost every weekend because they bought or traded a car over the weekend and they are worried that they aren't going to be covered when they drive off the lot with their shiny new purchase.  Well, in most cases, we can go with another entertainment icon from the past:  Don't worry, be happy!

To go all Insurance Nerd on you, the shiny new car comes under the definition of a newly acquired auto. If you don't want to read that link to the auto policy I will paraphrase:  It it replaces a car (if you traded in on the new car or you old car was totalled and you are getting a new one) it has the same coverages as the car it is replacing.  So if you had collision and comprehensive on the old car you automatically have it on the new car.  You are also covered if the new vehicle is an ADDITIONALcar up to the  BROADEST COVERAGES on the policy.  So if you have 2 cars on the policy, one has collision and comprehensive and the other has liability then you buy a third car on the weekend the third car automatically has collision and comprehensive when you drive off the lot. 

READ THE REST OF THIS THOUGH!  In order for you to keep this coverage you need to ask us to cover that auto with in the first 30 DAYS!  Don't forget to call us on Monday, procrastination is not your friend here, don't complicate matters by waiting too long!  This also is not a free coverage for 30 days, if you buy that additional car and call us on the 29th day you are covered but the company has to go back and start charging 29 days ago, otherwise you are in trouble with the state.

As always, if you have any other questions give us a shout or email!

Now I can't get that song out of my head!

What does being a Good Neighbor mean?

First, this is not a post about my good buddies at State Farm.  It is also not a post about all the rules to be a good neighbor.  I just want to talk about being a good neighbor when it comes to trees.

It seems in our neck of the woods (pun intended) we have had a lot of trouble with wind and trees lately.  Due to that I am getting several calls about how to handle situations with our insured's trees as well as  our insured's neighbors trees.

Here is a basic rule to live by, as a homeowner you are to due what a reasonably prudent person would do to maintain the safety of your home.  That means you take care to make sure someone is not injured on your property.  So if you have a tree that looks like it is damaged, rotten, broken, or other wise  presents a potential problem by falling on people or property then it is your responsibility to take care of it. Some times that means having to pay someone to cut it down. 

Now if  a perfectly healthy tree is blown down in a hurricane and lands on your neighbors shed you are not responsible.  But if your neighbor had noticed that that tree had been struck by lightening previously and had told you then, guess what, you are responsible as you were negligent.

The shoe goes on both feet so if it is your neighbors tree same rules apply. If your neighbors perfectly healthy tree is blown down on your roof in a hurricane, your insurance will handle it.  If you had gone to them and told them it was broken and leaning and they haven't done anything about it then we will probably pay for it (less your deductible of course) and then try to go back to them and get the money back.

That's the basics, here are some Frequenlty asked Question:

Q.  My favorite tree blew down in my, will my insurance cover that to clean it up and put in a new tree? 

A. With very few exceptions, there is no coverage for a tree that is damaged by wind.  If the tree falls on your house then there is limited coverage to take it off but not for the actual tree

Q. I have some trees getting ready to fall, will my insurance pay to take them down?

A. Sorry, but no.  I have heard those little talking heads on tv say this works but I don't think they work in the insurance industry!  This comes under the premise that it is one's responsibililty to take care of their own property, just like your auto insurance won't pay for tires so you don't skid off the road, your homeowners policy is not meant to maintain your property.  If insurance companies were to start paying to cut down trees two things would happen.  First, rates would be way higher than they are now. Secondly, we would live in a desert because they would love to have zero trees to fall and cause claims.

Q. Can and insurance company cancel me because of problems with trees.

A. Yes,  if  a company thinks insuring your home is an above average risk due to proximity of trees they have the right to not insure you.   They sometimes ask a client to cut some trees in order to maintain coverage.

Q. What if my neighbor says they won't cut down the trees that are endangering my property? 

A.  First this situation is no fun!  I am assuming you have been over with a fresh baked apple pie and talked sweetly to them and they have said "Sorry, I'm not cutting my trees".  Now you probably should officially notify them in writing that you are concerned about the safety of  your property due to their trees and and you would like them to remove them.  If they don't, this gives you a little better legal standing if something does happen.  You might consider paying to cut them your self (expensive but less trouble than them destroying your house) of you could consult an attorney.

As always, if you are insured with Cline Hall Agency or would like to be and have any questions on this subject give us a call!