UPDATE: Residents in North Carolina can expect lower car and home insurance rates starting on December 1, 2023, with additional reductions projected for July 2024. This news comes as insurance costs have surged across the nation, prompting many to seek ways to cut their expenses.
On a recent episode of the Broadcast Retirement Network, insurance expert Ashley King from State Farm discussed the critical importance of reviewing your insurance coverage in light of recent calamities, including severe weather events in North Carolina and California. With many still feeling the financial impacts of the COVID-19 pandemic, it’s vital for homeowners and drivers to understand their policies thoroughly.
“Many people do not realize that comprehensive coverage in car insurance includes damages from weather-related incidents, theft, or vandalism,” said King. “Homeowner policies often include water damage but require separate flood insurance, especially if you live in a flood zone.”
This is the moment for homeowners and drivers alike to reassess their coverage. King emphasized the importance of checking policy documents and reaching out to insurance companies for a comprehensive review. “You’d be surprised how many people think they have coverage only to find out they don’t when it’s too late,” she warned.
Insurance rates have fluctuated significantly since the pandemic, and the recent spike in driver numbers has compounded the issue. “With more people back on the roads, the costs associated with repairing newer vehicles have skyrocketed,” King noted. “For instance, minor accidents can lead to repair bills in the tens of thousands due to advanced safety features.”
Despite the challenges, State Farm’s recent announcements indicate a positive trend for policyholders. Rate decreases starting in December will provide much-needed relief for many families. King mentioned that State Farm’s rates are stabilizing, specifically in North Carolina, which has seen a decrease as of December 1.
With rates continuing to adjust, now is the best time to explore savings. King advised that bundling home and auto insurance can lead to significant discounts. “Maximizing your multi-line discount is one of the best strategies to save money,” she stated.
For those considering adjusting their deductibles, King suggests evaluating personal finances to find a comfortable out-of-pocket amount. “Higher deductibles can lead to lower monthly premiums, so it’s essential to find a balance that works for you,” she added.
Moreover, State Farm’s Drive Safe & Save program offers another avenue for savings. This program allows drivers to track their habits via a mobile app, potentially leading to discounts based on driving performance. “We’ve seen drivers save over $200 every six months simply by being mindful of their driving,” King shared.
As insurance remains a critical aspect of financial planning, experts recommend regular reviews to adapt to life changes and ensure adequate coverage. “Your insurance needs evolve just like your life does,” King emphasized.
This urgent update serves as a crucial reminder for all policyholders to take proactive measures in understanding and managing their insurance. With significant changes ahead in 2024, starting now can lead to substantial savings and peace of mind.
For more insights and to ensure you’re maximizing your coverage, consider scheduling a review with your insurance provider. Stay informed and proactive to safeguard your finances effectively.
