Did your insurance go up in North Carolina? 7 tips to save money. [The Charlotte Observer]

Charlotte Observer (NC)

Home Insurance Loophole

If you own your home, check your bill: Half of all insurance policies in North Carolina have a loophole disclaimer that leaves the customer paying up to hundreds of dollars more per year than state officials intend. We investigated to bring you answers.

Are you one of 1 million North Carolina homeowners paying extra for insurance?

Don’t be duped: How to check your North Carolina home insurance bill

Here’s where home insurance prices are going up in North Carolina

Did your insurance go up in North Carolina? 7 tips to save money.

Rising prices are impacting a number of everyday expenses for North Carolina families, including their insurance rates.

Although inflation in recent months has focused on rising costs for housing, vehicles and gas, home and auto insurance rates have also increased due to multiple factors. In North Carolina, state officials approved an average 7.9% rate hike for homeowners, going into effect in June.

But, experts say, there are steps people can take to help mitigate rising rates and make sure they’re getting the best deal possible without skimping on important — and often legally required — coverage.

Here are some tips for keeping your auto and home insurance rates in check and even lowering them.

Research requirements

Getting a good deal on insurance is nice, but you also need to make sure that you’re meeting any and all coverage requirements. Failing to do so could land you in legal trouble or in a lurch in the event you need to file a claim.

Knowing what your policy must include will also help you ask “informed questions” when talking to prospective insurance agents, according to the Insurance Information Institute, a coalition of various insurers.

Customers can find North Carolina’s requirements online at ncdot.gov.

Shop around for insurance

Like with any major purchase, shopping around for insurance can help you find the best deal available.

“Get at least three quotes,” the Insurance Information Institute recommends, “from both different insurance companies and different types of insurance companies — that is, those that sell through their own agents; those that sell through independent agents; and those that sell directly to consumers via the phone, an app or the Internet.”

Buy within budget

What home or car you buy will impact your insurance rates, so taking that into consideration while shopping can help save you money.

Things about a car that goes into determining car insurance rates, according to the Insurance Information Institute, include “the car’s price, the cost to repair it, its overall safety record and the likelihood of theft.” Some car insurance companies also offer discounts to drivers who’ll put a tracker in their vehicle that analyzes their driving.

For home insurance, the value of the structure and whether or not it’s in a “disaster-prone” area factor into your insurance rate.

Get safety, security features

Whether it’s your car or your home, lowering your risk of having to file a claim helps keep your insurance rates down.

In terms of car insurance, that means choosing a car with a good safety record can reap long-term savings.

And for home insurance, the Insurance Information Institute notes, many insurers offer “discounts for security devices such as smoke detectors, burglar and fire alarm systems or dead-bolt lock.”

Keep good credit

Many insurers will run a credit check when putting together your policy, Insurance Information Institute advises. It pays to do what you can to keep your credit score high.

Many banks, credit card companies and credit agencies now let you check your credit score anytime without harming your score and offer personalized tips for improving your credit.

‘Bundle’ policies

The idea of “bundling” your insurance policies — buying multiple policies from the same insurer and getting a discount for doing so — is thrown around a lot in advertisements. And it can lead to real savings.

And you often don’t have to own a car and a home to “bundle” — some insurance companies will also let you bundle things such as renter’s insurance and/or motorcycle or boat policies.

“To be sure you’re getting the best price, make certain any combined price from one insurer is lower than buying the coverage separately from different companies,” the III recommends.

Consider raising your deductible

Choosing a higher deductible — what you have to pay in the event something happens to your home or car — on your insurance policy will often lower your monthly payment.

Still, you need to take into account that raising your deductible also means you’ll be on the hook for more money in the event that you need to file a claim.