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BEST MOTORCYCLE INSURANCE

BEST MOTORCYCLE INSURANCE

As we gear up for the upcoming motorcycle season, we would like to discuss some important insurance topics to consider before you purchase the best motorcycle insurance you can in NC.
When it comes to protecting yourself and your property, there are few policies more crucial to get right than motorcycle insurance.  There are several similarities to auto insurance but a few crucial differences.  You want to cover your bike, but more importantly, you need to consider your bodily injury if you are in an accident.

LIABILITY INSURANCE

We highly recommend choosing a higher bodily injury limit with matching un/uninsured motorist coverage.  If you are in an accident in an auto, you certainly have a risk of sustaining serious injury or death.  On a bike, your risk is significantly higher.  
We recommend choosing at least a limit of $100,000 bodily injury each person and $300,000 each accident.  If you hit another rider on a bike, you want to protect yourself with the highest limit possible to prevent yourself from being sued where your limits stop.  The current state required limits in NC are $30,000 each person and $60,000 each accident.  These limits can easily be exhausted very quickly if a rider is thrown from their bike and you are liable.
 

UNINSURED AND UNDERINSURED MOTORIST COVERAGE

Be sure to choose the highest limit you can here.  I can think of a couple of incidents where we have had clients with this coverage, at our recommendation, and have been extremely happy these limits were chosen.  There is a high number of drivers on the road that carry minimum limits of liability, or worse, are driving uninsured.  If this happens, then you want to make sure your limits kick in and pay where the other driver’s limits leave off.  

COMPREHENSIVE AND COLLISION COVERAGE

This coverage is very similar to auto insurance.  One area worth mentioning is comprehensive coverage though.  Especially with sport bikes, theft is a major cause of loss.  Make sure that you are protected with the proper comprehensive coverage to protect you if your bike is stolen.  
You may also have a concern that your bike is not being covered for the value you have in it.  Most policies only cover the NADA value which includes depreciation.  We have companies that offer the true replacement of your bike. This can include additional aftermarket alterations made to your bike at a limit you choose.  This is especially important with custom motorcycles.

PERSONAL ITEMS

Some of our carriers offer coverage for your personal items from being damaged or stolen. This can include helmets, jackets, or other personal items. 

MEDICAL PAYMENTS

A lot of companies may not offer coverage for your medical payments.  It is important that you choose a company that will offer you this coverage if this is important to you.  The medical payment limit covers both you and your passengers at the amount chosen.  

DIMINISHING DEDUCTIBLES

This option is currently offered through Progressive Insurance, one of our more popular and competitive carriers.  They offer a 25% annual decrease in your initial chosen deductible.  This can be a nice surprise if you have an unexpected claim after a few claim free years.  

DISCOUNTS

There are quite a few options for discounts on motorcycle policies.  We have a list of several examples below.  Make sure you are getting credit for all that apply.
-Motorcycle endorsement on your license
-Rider associations
-Multi-policy discounts
-Prior cycle or auto insurance
-Homeowner discount
-Experienced rider
-Claim free discount
-Safe driver discount
-Married discount
Riding on the open road is an exhilarating feeling.  It is important that you can rest easy that you are adequately insured in the event of an accident or claim.  Please don’t wait until it is too late to consider these important coverage options.  Contact us at 704-494-9495 with any questions you may have regarding motorcycle insurance.
ELD Mandate for NC Commercial Auto Drivers

ELD Mandate for NC Commercial Auto Drivers

We have had a lot of questions from our NC commercial auto drivers regarding the recent ELD mandate so we figured we would do a short article offering an explanation as to what that is and how it may effect you.

A new mandate has been put in place by the US Department of Transportation (DOT) that requires an electronic logging device (ELD) for most motor carriers and drivers that are required to maintain records of duty status (RODS). The deadline for this mandate is December 18, 2017. If you have a grandfathered automatic on board recording devices (AOBRD), then the deadline will extend to 12/16/2019 for these drivers. After this deadline, then all motor carriers and drivers will need to adhere to the ELD rule if they are registered with the Federal Motor Carrier Safety Administration (FMCSA).

A link to the ELD rule is shown here:

https://www.gpo.gov/fdsys/pkg/FR-2015-12-16/pdf/2015-31336.pdf

This link from the FMCSA website will help you in choosing the correct ELD:

https://www.fmcsa.dot.gov/hours-service/elds/choosing-electronic-logging-device-checklist

Who is not required to have an ELD?

  1. Drivers who don’t use paper logs more than 8 times during a 30 day period
  2. Driveaway or towaway drivers
  3. Drivers who drive vehicles manufactured before 2000

Aside for the requirement, there are many reasons that an ELD will be beneficial to you.

Some of the benefits of having an ELD are shown below.

      1. They make logging easier and quicker.
      2. You can qualify for a discount from your insurance company.
      3. They lower the likelihood of driver mistakes.
      4. Helps losses due to employee fatigue.
      5. Lets you better track driver location.

If you have any questions on this new mandate or where to get one. Please reach out to us at 704-494-9495 and we will be happy to go into more detail with you. Please remember to let us know if you have an ELD that you are currently using, because the discount on your insurance can be significant and we want to make sure you are receiving the proper premium credits on your insurance policy.

 

CARGO INSURANCE

CARGO INSURANCE

Cargo insurance is a rapidly growing industry in NC. Due to the increased popularity of Amazon delivery, package delivery has increased by quite a bit in the last couple of years. This coupled with freight delivery of all kinds, has increased a need for more cargo insurance companies.

We have an expertise on trucking insurance of all kinds. There are several factors that you should focus on when choosing the correct insurance coverage and commercial trucking insurance company.

You will want to make sure the insurance company that you go with can offer you your required limits at competitive premiums.

The limits you choose for each commercial auto liability coverage should be sufficient to the following parties:

  1. Yourself
  2. DOT regulations
  3. The companies you are contracting with

 

tractor trailer insurance

AUTO LIABILITY INSURANCE

Auto liability will cover anyone that you hit while driving your commercial truck.

The weight of your truck, the radius that you are traveling, and the type of goods you are hauling will all impact the minimum insurance requirement for auto liability. The most common limit though when crossing state lines, is $750,000 per the Federal Motor Carrier Safety Administration (FMCSA).

Keep in mind that your contract may require higher limits than the minimum FMCSA limits. Even if your contract doesn’t require it, you may want to consider higher limits to protect yourself further.

 

trailer cargo insurance

CARGO LIABILITY INSURANCE

Cargo liability will cover damages to the goods you are hauling due to your negligence.

The FMCSA also has cargo liability requirements for certain trucking risks. If you aren’t required to have this per the FMCSA, you likely will with any contract you enter into. We typically see a minimum cargo liability requirement of $100,000.

A similar coverage type is On Hook Liability which is more common on towing and auto hauler risks. If requesting On Hook Liability coverage on auto haulers, be careful, as there are certain coverage gaps when choosing this policy type. The premiums are usually less expensive, but you don’t want to be caught without the correct coverage.

 

truckers general liability

MOTOR TRUCK GENERAL LIABILITY INSURANCE

A lot of contracts will require you to have a General Liability policy in force. This will cover claims outside of anyone you hit or damages to the freight you are hauling. Claims on these policy types are less common but they still can occur.

Losses for general liability can occur for delivery errors, driver negligence while loading or unloading, libel, and slander. A typical required limit of liability on this coverage is $1,000,000. Premiums for this coverage type are generally the lowest of the commercial cargo trucking polices.

For questions of any kind on commercial cargo insurance, please feel free to give us a call at 704-494-9495. We can also offer free quotes with all of our various commercial trucking insurance carriers.

SHORT TERM RENTAL INSURANCE

We will discuss insurance policies for short term rentals or seasonal homes.  This can commonly be referred to as Airbnb insurance, VRBO insurance, or vacation rental insurance.

Short term rental homes are not a new phenomenon, but there has been a large increase in these as of late. This is due largely to the advent of companies like Airbnb, (Airbnb.com) and VRBO (vrbo.com). These companies make the job of leasing your home out a breeze. A lot of people don’t want to turn down the opportunity to make the extra income on their seasonal or secondary homes. If you own a home that you use as a seasonal or vacation home and also rent out, then you should make sure that your insurance policy covers you accordingly.

A lot of people don’t understand that you need to have a specific policy in place to make sure short term rental properties are covered. You need to notify your home insurance company if you move out of your home and lease it to a tenant or have it unoccupied or coverage can be denied. You also need to notify your insurance company of any changes in usage of your secondary home as well.

Most home insurance policies will exclude coverage for business pursuits on your home. This makes your standard home insurance policy inadequate for covering such losses on short term rental properties. Further, if you have a commercial policy in force, but you also use your home as secondary residence for yourself, a commercial policy won’t be sufficient coverage either. This is why you need a specialized policy that acts as sort of a personal and commercial policy hybrid.

Quite frankly, most insurance companies have yet to offer coverage for such a risk. That is just one of the reasons that a large percentage of people do not have proper insurance on their short term rental properties. Another reason is consumer education. Don’t fret though. We have multiple markets that will take on this risk and we are able to close the knowledge gap on this topic.

There are many properties that can constitute a short-term rental policy. Some of the more common types are listed below.

Common Seasonal Homes and Short Term Rental Types

  1. Beach house or condo
  2. Lake house
  3. Mountain house or cabin
  4. City condo
  5. Golf course house or condo

What coverage types should you focus on when getting a policy? There are several endorsements that should be considered. The 4 most important types coverages for short term rentals are the following:

  1. Dwelling
  2. Contents
  3. Liability
  4. Business Income

DWELLING

The dwelling is the structure you want to cover. For your home or condo to be covered it is important to make known the use of the building. Like your primary home insurance, this will cover things like fire, water losses, falling objects, lightening, wind, etc. If you use it as a vacation home and a temporary rental, this should be disclosed to your agent. Insurance companies may deny coverage even on these losses if they discover you are renting your house out, even on a short-term basis.

In many cases you can also cover detatched structures such as sheds, barns, guest houses, and garages. You want to make sure to tell your agent about these to make sure they are listed on your policy. Some policies will cover up to 10% of the primary dwelling amount. Some, but not all. You may also find that these detached structures need to be covered for more than this amount.

CONTENTS OR PERSONAL PROPERTY

These items include clothing, appliances, furniture, lawn care items, etc. It is highly recommended that you add a replacement cost endorsement to your policy so these items can be replaced instead of just receiving the depreciated actual value of them today if there is a claim. That way if you had a fire loss, you could truly replace everything with like items that are brand new.

LIABILITY

This might be the most important coverage type. If you are leasing out your home and you are sued for negligence of any kind, your liability coverage will protect you. Keep in mind you don’t even have to be at fault to get sued. Lengthy court battles can get expensive and your liability will cover these expenses. They will also cover settlements if the courts rule in favor of the plaintiff.

Do yourself a favor and choose the highest liability limit the company will offer. The cost differential is not that much and the reward for having the higher limits can be huge. Many companies will offer a limit up to $1,000,000 for liability.

BUSINESS INCOME

Sometimes referred to as loss of use coverage, business income covers expenses you would incur by not being able to rent a property due to a covered loss. For example, if you had a fire and the home had to be renovated or replaced, your business income coverage would pay for loss of rental income during this time of reconstruction. This is not always standard so be sure to ask for this if you want the coverage.

Two final recommendations.

  1. If you plan to rent out a property of any kind, you may want to consider transferring that property into a business name or LLC. This will further protect you from anyone being able to access any of your assets in your personal name. Just make certain your insurance policy is in the same name as the property owner.
  2. Consider an umbrella policy that will pick up where your underlying property policy leaves off. Again, make sure you have the correct name listed as named insured on this policy as well.

For any questions on anything discussed please feel free to give us a call at 704-494-9495. Our agents can help explain these matters to you and get you a free quote on this coverage.

AMAZON DELIVERY INSURANCE

Amazon has recently introduced Prime Now to the Charlotte, NC region. This has opened up a need for more drivers and an important insurance implication that should be carefully considered. We will focus on Amazon delivery insurance in this article.

Amazon employs independent contractors to help assist the US Postal Service and other large package delivery services like Fed Ex and UPS. Independent contractor drivers are commonly referred to as Amazon flex drivers. Amazon also uses delivery providers. For more information on this you can go to https://logistics.amazon.com/ or https://flex.amazon.com/.

Amazon has certain requirements to become a driver that vary depending on if you are considered a subcontractor or a direct employee of a delivery provider. Some of the main requirements are shown below for each.

Delivery Provider

  1. A cargo van with at least 300 cubic feet of cargo space
  2. Complete a safety and driver training course
  3. Wear a uniform
  4. Have minimum insurance requirements

Flex Driver

  1. Have a smart phone and be able to download the app
  2. Be able to complete a background check
  3. Have the minimum required vehicle such as a mid-sized 4 door sedan, SUV, mini-van, or pickup truck with an enclosed bed
  4. Have the required license to drive and minimum insurance requirements

For a list of frequently asked questions on becoming a driver you can go to https://flex.amazon.com/faqs/

With all those requirements in place, there currently appears to be a coverage gap on being properly insured though. Delivery providers typically have minimum requirements for having commercial insurance. Flex drivers, not so much. Proof of a personal insurance policy may be sufficient for Amazon, but it is not for you and your insurance company.

One of the main exclusions on your personal auto policy is any kind of business use with your vehicle. A personal auto policy will allow a business use class endorsement for certain business uses, but package delivery is not one of them. To be adequately covered to use your vehicle for any kind of package delivery, you would need to have a commercial auto policy in force. Some commercial auto policies will also cover you for personal use if that is requested on the policy. That way you are covered for business and personal use under one insurance policy.

Just as transportation network companies such as Uber and Lyft have recently arrived and created a new era of insurance concerns, Amazon’s changes to package delivery has also opened up these same concerns. Just because you are fine in the eyes of Amazon, doesn’t mean you are fine if you have a claim.

For example, if you back up your vehicle after delivering a package and run over someone or something, your insurance company will want to make sure that you are covered under a commercial policy before paying out on such a claim. This would effect not only damages to your vehicle, but also the liability for the damage you did. Don’t expect Amazon, Uber Eats, or any other company you are delivering for to pay for your loss.

With the recent purchase by Amazon of Whole Foods, this will also create even more opportunities for more drivers, which in turn brings more insurance questions. We mention Amazon when referring to these package delivery opportunities because of their relative market share for home delivery. They are absolutely not alone though. Virtually every large retailer has plans implemented, if they haven’t already begun to deliver items. Whether it is restaurant food, groceries, general merchandise, or any other items, a personal auto policy will not cover you for delivery of any kind.

It is very important to make sure you are adequately covered before starting to work for any company doing delivery of any kind. Many people hear commercial insurance and get scared thinking your premiums won’t be affordable. That isn’t really the case at all. Many commercial policies can be quite similar in premium to your personal auto policies. Don’t wait until you have a claim denied before looking into this. Call us at 704-494-9495 if you have any questions and one of our friendly and knowledgeable agents will be happy to discuss options with you.