Insurance is Going UP?

No matter who you are insured with,  if you are in the part of heaven we call Eastern North Carolina, your homeowners insurance is going up.

Why?

Here is the slightly abridged version: it takes a while to cover all of the explanations, so if you don't like reading here is an internet star (cough*me*cough) with a video on the subject!   Clike HERE for the video.

To begin, most of the coast of North Carolina is insured by through the North Carolina Joint Underwriters. In short, the NCJUA is an entity set up by the state to insure properties that others companies choose not to insure.  Why won't companies insure these properties?  Good question!  The answer is insurance companies, like all companies, are in business to MAKE MONEY!  If they don't think they can make money, then they aren't going to insure it.  North Carolina, by means of the Insurance Commissioners Office, limits how much can be charged for insurance premiums, so companies have began refusing to write Wind and Hail (hurricanes and tornadoes are not mentioned in insurance policies, wind and hail is what covers them) in the 18 coastal counties of North Carolina.  (The companies can do that because the state law allows insureds to purchase the wind and hail coverage from the NCJUA through what is called the Beach Plan.)

All of this sounds fine, EXCEPT, it is widely believed that there is not enough money available to handle all the potential losses. Some sources think the pool of money to pay potential losses is underfunded by 65 BILLION!  Due to that small problem, a bill was passed a few years ago, NC House Bill 1305.  Basically,  the companies that do business in North Carolina will have to bail out the NCJUA in the event that they do not have enough money to cover the disastrous event.  Therefore, companies will be responsible for an assessment based on the percentage of business they have in NC.  If a company has 10% of the business in NC, they will have to pony up 10% of a BILLION dollars.  The legislature realized that companies don't have that kind of money lying around so they (through the NCDOI) are allowing rates on homeowners to go up so that the companies can put money aside for this probability.  This is on top of the money the companies must have to cover their own clients, as well.

Add on top of this Hurricane Irene that came along after this bill was passed. While Irene was not a big hurricane it did cause problems for some companies.  NC Farm Bureau had a lot of losses near the coast and subsequently have had their ratings dropped, and in turn have cancelled thousands and thousands of policies, flooding the market with people needing insurance.  This makes the other companies wary of bringing on these particular customers.

Every company went up last year, and sorry to say, it looks like it is coming again this year. I just got this email this week: click HERE.

Where does that leave you?  Well, if you are insured with CHA, our companies are still the best positioned.  Our companies are smaller and don't advertise, so they were less expensive to begin with and don't have quite the potential losses of the Nationwide, Allstate, and State Farms.  We are constantly insuring new people everyday from these other companies as our prices are very competitive.

IF YOU AREN'T INSURED WITH US, take Dave Ramsey's advice and give us a call!

http://www.daveramsey.com/blog/save-500-or-more

If you have any questions, give our office a call!  If not, enjoy your weekend!  Go outside!


--Cline

How to Prepare for Tonight:

We are going to be experiencing some record low temperatures tonight. Therefore, you might want to take precautions to keep from having damage to your property.  Here are a couple of quick and easy to-do's to keep your property damage-free.

1. Watch were you  park your cars.  If you have a garage, that is best place, of course because the cold and windchill can cause glass to crack  Also, the low temps following rain will cause limbs to break in trees and fall.  I'm going to park my car out on the street tonight!

2. Try to prevent pipes from freezing.  Probably none of us have our pipes wrapped to keep from freezing, but if you  have any pipes that are close to outside walls, you might want to open cabinet doors near your sinks to let some heat in to keep them warmer.

3. Leaving water on at a trickle will keep the pipes from freezing. So, if you are really worried you might try that.

4. Check your antifreeze in your cars.

5. Close your garage!  It's going to be cold enough to really cause problems.  Don't let the cold in!

6. Bring your pets in!  DO NOT RUN A HEATER, HEAT LAMP, LIGHT BULB or anything like that in the dog house.  I have already had a client almost loose one of their properties because the neighbor did that and caught the roof on fire!

Stay safe and keep warm!

--Cline

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!