Frequently Asked Questions

Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us.

  1. How much liability insurance do I need?
  2. Why is my auto insurance going up?
  3. Why does my neighbor pay less than I do?
  4. How often should I review my insurance?
  5. What does the term "Full Coverage" mean?
  6. Can I let someone else drive my car?
  7. If I rent a car, does my policy cover damage to the rental?
  8. What is a Liability Umbrella?
  9. Why is my coverage amount so high? My house is only worth _____.
  10. Why do my prices keep going up?
  11. What is a Liability Umbrella?
  12. Is jewelry covered by my homeowners policy?
  13. If I have a claim, will I be cancelled?
  14. Why is the company inspecting my house?
  15. How often should I review my insurance?
How much liability insurance do I need?

The best answer to that question is "As much as you can afford". Really.

Kentucky requires that vehicles on the road have a minimum of $25,000 Bodily Injury Liability per person, $50,000 per accident, and $25,000 of Property Damage Liability. But frequently, these amounts are not enough to pay for the damage that you caused - especially when we consider the increasing cost of medical care.

When we discuss your quotes, we'll review the different options you have for Liability and the costs that go along with those options. You'll be able to make an informed decision based on what is important to you.



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Why is my auto insurance going up?

Simply put, expenses are going up.

  • All those extras that make your car safer to drive, also cost more to repair.
  • Your car insurance covers more than your car. Injuries sustained in auto accidents are increasingly more expensive due to rising medical costs.
  • Distracted driving has increased the number of claims a company has each year.
  • In addition to claims expenses, there are also rising business costs, just like every other business today.

You can expect to see rising costs every time your auto insurance renews. Since we are an Independent Agency, we can quote several companies, and help you to control those increasing costs.



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Why does my neighbor pay less than I do?

Obviously, claims history and driving history has something to do with that. But what you don't have any accidents or tickets?

Each insurance company develops its own premium base based on its own expenses. They might set rates by zip code, by driver age, by education level, by the number of cars in the household, by the homeownership status, prior insurance coverage and more. If any one of those rating factors is different than your neighbor, your insurance premiums will be different.

Since we are an Independent Agency, we can look through several companies to find the one that rates your unique characteristics the best.



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How often should I review my insurance?

You definitely want to review when you make a big change to your household, like a teenager just getting their license, or you bought a brand new vehicle.

Even if your rates increase because of a big change in your household, you might want to consider sticking with your current company rather than switching right away.

  • Coverage benefits can vary from policy to policy. You want to be careful not to give up a really great benefit too quickly.
  • New quotes can be higher when you have been with your current company for smaller periods of time. Sometimes just waiting another 6 months might get you a better rate on the new policy.
  • The new company quoting you a lower price might be heading into a rate increase. Then your renewal might be higher than the old company would have been if you just stayed with them.

In general, if you haven't reviewed with your agent in 3 years, make an appointment. Things change rapidly and you want to make sure your insurance is keeping up.

Before you review with your current agent, you might consider meeting with one of our agents. We can lay out our best suggestion, then you take it back to the agent you've been working with and get their opinion. We don't mind!



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What does the term "Full Coverage" mean?

Actually, it means nothing officially. There is no defined insurance term for "Full Coverage". Generally, though, most people understand it to mean their insurance will pay if their car is damaged.

The only two coverages on your auto insurance that will fix your car are Collision and Comprehensive.

  • If your car is damaged by a moving vehicle, whether your car was in motion or the other car, or both, Collision coverage would be needed to cover the repairs.
  • If something other than collision has damaged your vehicle (storms, vandalism, flooding, fire, windshield breakage, etc), then you would need Comprehensive coverage to repair your car.

You can have one or both coverages, and can have different deductibles in each coverage.

The options for coverage can be a very big list and there is not such thing as "one-size-fits-all" insurance. We will take the time to review carefully what you already have before we would ever recommend that you switch just because we gave you a lower price. You don't want to give up coverage accidentally. Let us take a look and see what we can do to help.



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Can I let someone else drive my car?

First, determine if this is a one-time or temporary situation. (Mom came to visit for a week and she's going to use your extra vehicle while she's here, or a friend is having their car repaired and borrows yours for a day or two). In this case, your insurance would usually take care of anything under the minimum limits. A big claim would likely have your insurance taking care of you, and your friend's insurance taking care of them. All claims are evaluated individually, but this is a generally good guideline.

But, if the additional driver is more long-term (Junior moved back in and has access to your car, etc), then you definitely want to add that driver to your insurance policy. Most companies will require that you at least list every person of driving age in your household, including roommates. You don't have to rate for them, but you have to identify them.



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If I rent a car, does my policy cover damage to the rental?

Yes and no. (There are no simple answers in our office!) If you do not have Collision and Comprehensive coverage on your primary vehicle, then the rental will not be covered at all.

If you do have Collision and Comprehensive coverage on your primary vehicle, then the coverage would apply to the rental. HOWEVER, there are additional charges that can be added by the rental company that your insurance would NOT cover.

  • Daily loss of use. They may charge you a daily rate while the car is unusable, since they are losing rental income.
  • Additional value. There may be a discrepancy between what the value that your insurance puts on the damaged rental, and the value that the rental company puts on it. If the rental is totaled, that could leave you owing the difference.
  • Loss of value. Since the vehicle has been in an accident, its resale value is diminished. The rental company could charge you for the reduction in value.
  • You would also have to apply your deductible to the claim - that's at least $500 out of your pocket right there.
  • Then there's the extra expense of having a claim on your insurance record for the next 3-5 years.

The insurance from the rental company may be a cost you are reluctant to incur, but it might be better than taking the risk on all those extra costs. Wouldn't it be more pleasant to just turn the keys in and let them deal with the repairs?



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What is a Liability Umbrella?

Lawsuits are common today. If someone is injured on your property, you may find yourself at the wrong end of a lawsuit. And more and more, juries are awarding very large verdicts. Your homeowners insurance may provide substantial liability limits, but juries can award sums that exceed those limits.

And excess liability policy acts like an "Umbrella", providing additional liability limits if your homeowners or auto insurance policy is not enough.



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Why is my coverage amount so high? My house is only worth _____.

Your home's market value depends on many things; location, age of home, condition of home, buying trends, etc. But your home insurance is promising to rebuild your home. The market trends do not affect the cost of rebuilding. Each company uses reliable software to effectively calculate the rebuild cost of your home.

We know the areas in Kentucky much better than the people at the 1-800 number. Let us help you determine the reconstruction cost of your home, so that you are neither under, nor over-insured.



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Why do my prices keep going up?

Even if the company's prices stay the same, you will see your bottom line increase. This is because each time your policy renews, your coverage amount is increasing so the reconstruction costs keep up with inflation.

It might just be that the company has had a rate change. This happens less often than auto insurance changes, but it does happen. Sometimes, though, your home might have entered another rating "tier". For example, you may have been in a pricing category for newer homes, but at renewal your home has aged into the next tier.

There can be any number of reasons for rate increases. One thing is sure, though, your prices will increase. As an Independent Agency, we have many sources for coverage. We can review all those options and find the most affordable plan for your home sweet home.



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What is a Liability Umbrella?

Lawsuits are common today. If someone is injured on your property, you may find yourself at the wrong end of a lawsuit. And more and more, juries are awarding very large verdicts. Your homeowners insurance may provide substantial liability limits, but juries can award sums that exceed those limits.

And excess liability policy acts like an "Umbrella", providing additional liability limits if your homeowners or auto insurance policy is not enough.



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Is jewelry covered by my homeowners policy?

Yes and no. Each homeowners policy specifies a limit for theft of jewelry, and what damages your jewelry is covered for. Most of the time, this is sufficient, but if you do have a particularly valuable piece, it can be specified on the policy and insured for its full value.

Do I need to take inventory of my belongings?

You don't usually need to show proof of ownership for standard belongings. But one of the first questions you are going to be asked is "What got damaged"? If you have photos, you can instantly recall everything you need to make that list. Make it a point to snap a few photos every once in a while. It will help you greatly in the even of a catastrophic loss.



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If I have a claim, will I be cancelled?

Generally, no. But prior losses are considered to be predictors of future losses, especially for theft and water claims. One claim usually doesn't hurt. But if you have two or more within 3-5 years, you may get a notice that the company doesn't want to renew your insurance.

Don't worry. Yes, the pricing will be higher because of your claims. But we will be able to find coverage for your home. And don't worry about the additional pricing. You still come out ahead financially. It would have cost a lot more to pay those claims yourself. The additional pricing will be temporary. We can help you figure it the best course of action.



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Why is the company inspecting my house?

Unfortunately, not every homeowner is taking good care of their property. Things like old roofs, sagging gutters, and peeling paint can create in increase in risk. Insurance companies are finding it to be more cost effective to perform drive-by inspections than to pay the claims that these increased risks create.

If the insurance company has requested that you make some repairs in order to continue insurance, odds are you should make those repairs. It's better to prevent a problem than to deal with a claim.



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How often should I review my insurance?

You definitely want to review when you make a big change to your household, like enlarging a deck, finishing a basement, enclosing a porch, etc.

Rates are another reason that many people are prompted to review their homeowners insurance Even if your rates increase because of a big change in your household, you might want to consider sticking with your current company rather than switching right away.

  • Coverage benefits can vary from policy to policy. You want to be careful not to give up a really great benefit too quickly.
  • New quotes can be higher when you have been with your current company for smaller periods of time. Sometimes just waiting another 6 months might get you a better rate on the new policy.
  • The new company quoting you a lower price might be heading into a rate increase. Then your renewal might be higher than the old company would have been if you just stayed with them.

In general, if you haven't reviewed with your agent in 3 years, make an appointment. Things change rapidly and you want to make sure your insurance is keeping up.

Before you review with your current agent, you might consider meeting with one of our agents. We can lay out our best suggestion, then you take it back to the agent you've been working with and get their opinion. We don't mind!



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