Author: Brad Smith

Kentucky Personal Auto Insurance Insights

Posted on by Brad Smith
What is Personal Auto insurance? Is it the same as Car Insurance? Read on and learn more about Kentucky car insurance.

What’s your biggest risk

I remember when auto insurance came in two flavors, state-mandated liability insurance or full coverage car insurance.  Of which the latter, I am told, no longer exist.

Teen drivers. When your children start driving two thing happen. Fully understanding one is critical. First, your auto insurance is going to skyrocket. The critical event is your risk you expose your kids to when you hand them the keys. TruePoint can help, (502) 410-5089
25% of accidents due to texting and driving

Changes in the law, insurance options, and technology have significantly altered how we buy car insurance.  But the combined impact of these factors pales in comparison to the litigious state of America. 

It seems every time you turn around, another legal exposure pops up.  In the US, cars are the leading cause of injuries.  With that said, it is easy to comprehend that for individuals in Kentucky, the vast majority of our exposure comes from our cars.    

Kentucky car liability insurance seems to be more critical than ever before.   And it’s not going away anytime soon.  In the meantime, there are only a few things we can do to reduce our risk.  The biggest impact will come by having a better understanding of insurance and how consumers can best acquire car insurance in Kentucky

Kentucky Auto Insurance Law

Most Car Accidents: It’s the other dude’s fault

While the requirements vary from one state to the next, every state requires car owners to have auto liability coverage.    A handful of states, including Kentucky are No-Fault states.  As a No-Fault auto insurance state, auto owners in Kentucky must approach risk management differently than many of their neighbors.  To start, Kentuckians must deal with Personal Injury Protection or PIP.  Click here for more information on Kentucky’s No-Fault Insurance Program.

Kentucky Minimum Auto Liability Insurance Limits (Required Coverage)

Like other states, Kentucky has mandatory minimum auto liability limits, with minimum limits for Bodily Injury and Property Damage.  In 2018 Kentucky raised the requirement for auto liability insurance.  Additional information can be found at:

kentucky-car-insurance-state-auto-insurance-requirements/

Kentucky Base Car Insurance Coverage

Base auto insurance is composed of the mandatory liability coverages above and the following three optional coverages.

•    Collision:            The result of a vehicle colliding with a car or other object

•    Comprehensive:        Other than collision

•    Uninsured motorist and underinsured motorist: pay for your injuries when the at-fault driver has no insurance or has insufficient insurance limits.

For additional information related to Kentucky required and base auto coverage.

Optional Kentucky Car Insurance Coverage

Some of the coverages below may be beneficial to you.  Others may eliminate significant gaps in your current insurance policy.  This list intends to generate discussions.  These coverages vary among insurance companies.  Make sure to understand the coverages and limits

•    Road Side Assistance

•    Rental Car

•    Rental Car Gap Coverage:       

•    Additional Expense

•    Loan Gap/ Lease Gap

•    New Car Replacement

•    Reduction in Value

•    Identity Theft

•    Re-Keying

•    Cell Phone Coverage:           

•    Non-Owned Trailers

•    Trip Interruption Coverage

•     …and more

TruePoint Auto Insurance Insights

Your insurance company, Mother Nature, and you; each have an impact on your insurance premium.   But before you can have an impact on your car insurance premium, it’s vital that you understand the factors you need to address.

Stop leaving money on the table

Insurance companies are perpetually reconsidering the nature of every risk that they insure.   Accounts flagged as high risk will experience more rapid premium increases and in some cases, may be non-renewed. 

Clients deemed conservative or lower risk experience the opposite as insurance companies make every effort to retain that business.  If you seriously want to stop leaving money on the table, then this is important to you.  The first step is to understand the characteristics of a low-risk account, then mimic them. 

Factors that influence auto insurance premiums

Life Happens, and when it does it can Impact Auto Premiums

•    Age:        Younger and older drivers pay more for car insurance

•    Household:     More drivers in the home can lower rates

•    Location:    State, city, zip.  Each impact premiums

•    Education:    Education is a factor in some states (Prohibited Practice in Kentucky)

•    Financial:    Insurance Score, which includes Credit Score, is a significant component

•    Vehicle:        The type of vehicle, sports cars may lead to a higher premium, vehicles with a high GVW will!

•    Tickets:        DUI’s & Reckless Driving create substantial problems, but minor violations add up

•    Accidents    Impact varies due to cause, severity, past driving record, and other factors 

#Your Actions Matter    Protect everyone in your home, and save money on your auto insurance

•    For insurance companies, Conservative is King!  Avoid anything that appears radical or aggressive.  Think Mr. Rogers.  Gen X, think Barney.

•    Check tire pressure, tread and sidewalls regularly

•    Confirm that headlights work on both dim and bright

•    Regularly check taillights, brake lights and turn signals

•    Encourage drivers education and safety for all household members

•    Zero Tolerance for Distracted Driving

Stop leaving money on the table    Take advantage of discounts offered by Insurance Companies

•    There are several ways to reduce the cost of auto insurance.  Program availability and savings vary based on Insurer.

•    Some of the most significant discounts are available to those that can qualify for any of the following: Safe Driver, Multi-Policy, Continuous Insurance, and Good Payer discounts

•    Don’t worry if you didn’t qualify for any of the previous programs. There are still a lot of ways to save.  Savings associated with this group range from the high single digits to low double digits.    Early Quote, Multi-Car, Driver Training, Good Student, and Paid in Full Discounts

•    New Car, Home Ownership, Student at School, and Hybrid Vehicle Discounts:

These are a few of the more commonly offered discounts

Principle of Indemnity

Posted on by Brad Smith
Insurance term, definition. The principle of indemnity is an insurance term. What is meant by insurance principle of indemnity
principle of indemnity states that the insured is returned to condition just prior to loss
The Principle of Indemnity

To understand insurance one must first grasp the principle of indemnity.  The theory is applied to insured losses and seeks to provide fair compensation.  Fair compensation to parties, the insured and the insurance company is required.  Resolving most losses is unambiguous.  Others test the service skills of the insurance agency and require both the insurance company and the insured to commit to the principle of indemnity.

A cornerstone for insurance, the principle of indemnity requires that an insured may not be compensated more than there economic loss.  The insured cannot profit from a loss.  If losses became a way for policyholders to generate profits, then insurance companies would become subject to adverse selection.  This in the quickly cause insurance premiums for all property and casualty policies to rise.

What is Comprehensive Insurance?

Posted on by Brad Smith
Deer, Hail, Vandalism and all other than collision claims can be covered with comprehensive coverage added to your KY car Policy.
Comp Claim

There are two coverages that protect your vehicle if it is damaged.  Collison coverage covers accidents that occur when your vehicle collides with another vehicle or object such as a fence, mailbox or tree.   Comprehensive insurance covers your vehicle when the damages result from other than collision. Comprehensive coverage may be referred to as other than collision coverage.

Examples of Comprehensive Coverage

If your auto insurance has comprehensive insurance then you will be protected in the event your car is stolen or vandalized.  Comprehensive or Comp coverage will also protect you from Mother Nature.  Damages caused by wind or hail storms are covered by Comp.  The coverage will also protect you from fire, flood and wildlife, such as deer.     


Comprehensive is not a standard feature

While not included with a standard car insurance policy, the coverage can be included.  While many drivers choose to include this coverage, adding it should be a decision for the insured.  We advise clients to consider the cost of the coverage relative to the value of the car before decided to add or waive the option.

Louisville, Kentucky…..Instant Online Insurance Quotes

Posted on by Brad Smith
Louisville, Kentucky home to the fastest two minutes in sports

Louisville, Kentucky is known around the globe for being home to the fastest two minutes in sports. Similarly, TruePoint Insurance in Kentucky is known for rapid real-time, online, insurance quotes.

TruePoint, home of the most enjoyable five minutes in insurance

We often find ourselves boasting that our real-time online quotes are the most enjoyable five minutes in insurance.  While this may sound like hype, we can support our claim.  Typically online quotes are anything but online quotes.  If you don’t believe me, go ahead and give it a try.  Take the next 10 to 15 minutes of your life and complete the online form.  When you have reached the final page, what do you see?  Or should I ask, what don’t you see?  Probably not a quote.

What makes our quotes different? 
Online insurance quotes in real-time
Insurance Quotes:
Online and in Real-Time

You have set your self up for 4, 8, maybe even 12 calls over the coming days.  Insurance agents all hoping to give you what the original ad promised; an insurance quote. Why did you go online for your insurance quote? 

  • Convenience, the promise of information at a time that fits into your busy day. 
  • Insurance Agents, If you have ever tried to buy insurance, you get this one.

Odds are, you were trying to avoid talking with an insurance agent.  You are going to get pretty frustrated.  Now, instead of one insurance agent, there will be a dozen. 

TruePoint online quotes recognize your needs and time constraints.  When you finish our online form you will have a quote for your car insurance, home insurance or maybe a quote.  More importantly, we’ve made the agent disappear. 

Ok, so the thing about the agent disappearing is our Hype!  But the truth is, the ball is in your hands.  To issue a policy you will need to talk with an agent.  

What horse won finished first in the 2019 Kentucky Derby?

Ok, maybe we are not as well known as the derby,  but we give you real-time home and auto insurance quotes without a Racing Steward.  That doesn’t make us the best insurance agency for everyone, but with our customer-focused approach, the number two agent isn’t going to beat us.  

While others are spending their time trying to make insurance interesting, we are making every effort to simplify the process by putting information at your fingertips.  Instead of trying to make insurance exciting, our client portal places all your important insurance information in one convenient location giving you more time for things that are a little more exciting than insurance.

While some might disagree, we know that insurance is ready for  Prime-Time and our clients can attest to that.  While others are taking time away from their work or otherwise busy schedule, our clients are interacting with us through our online client portal.  While others are watching Dancing with the Stars, our clients are online adding their new car to their insurance policy.

It’s that simple.  Our client-focused approach is how we Justify asking you for your business.

Liquor Liability Insurance

Posted on by Brad Smith
Insurance for bars and restaurants must include a form of coverage known as liquor liability insurance, also known as dram shop liability insurance.
If you serve alcohol, you need liquor liability insurance

Today we measure the amount of alcohol used in drinks by the shot.  But in colonial America gin and other alcoholic drinks were measured in unit shared by apothecaries.   This measurement was known as a Drachma or Dram.   

Dram Shop Liability Insurance, more commonly knowns as Liquor Liability Insurance is the insurance vehicle used to transfer liquor-related liability that is a part of serving or selling alcoholic beverages.  This coverage provides protection against serving intoxicated individuals or minors. 

Who is required to have a Liquor Liability policy? If you own a bar or any other venture that sells or serves alcohol, most states will require it.
Protect yourself from intoxicated guests.

When individuals drink too much they not only pose a risk to themselves, they are also a threat to others.  As an owner of a restaurant and bar, you have potential financial exposure if you allow intoxicated patrons to drive. 

Alcohol at weddings: Step 1, hire a qualified bartender.

But bars and restaurants aren’t the only places that you will find liability associated with alcohol.  Liquor Liability can show up at casinos, sporting venues, and even the office Christmas party.  Individuals are not exempt for this exposure.  Graduate parties, reunions, and even your wedding could be marred by the actions of an over-served guest. 

Liquor liability insurance will help you reduce your exposure should an unfortunate event occur. But your first and best way to reduce your personal exposure is to hire a professional bartender. Pouring drinks is the easy part of bartending, not pouring one to the wrong person is the real job.

Commercial Insurance

Posted on by Brad Smith


Commercial insurance is defined as:

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Define Commercial Insurance

The definition of business insurance will likely vary depending on who you ask. The explanation may even change depending on how you ask it. It goes by a lot of names. You may hear it called many things. Business insurance, commercial business insurance or property & casualty commercial insurance.

TruePoint insurance defines commercial insurance as:

Insurance coverage for businesses that provides protection against a broad range of P&C claims. The term commercial insurance is used to describe several insurance policies. To determine which you need, you should, first, determine the risk faced by your company. A commercial insurance policy should also provide defense cost in the event of a lawsuit. This protection should be available regardless of the legal merit of the case.

TruePoint doe commercial insurance call us to speak with a business insurance specialist
we are insuringky.com

What should your Business Insurance Policy look like?

We stated the definition of commercial insurance might change. The truth is, it will change. The answer will vary based on who you ask, and maybe how you ask. Who you are will also alter the definition……… What type of business do you own? Do you have employees? Do you use vehicles in your business? Do you own buildings or other property? Do you need commercial insurance? These questions are just the beginning of defining your unique commercial insurance needs.

Property and Casualty Insurance

The term commercial insurance policy defines a vast range of coverages. Each offers a vehicle that provides specific protection to your business.

We can start by breaking insurance into one of three categories, Property, Casualty or both. The property will relate to (buildings, furniture, inventories, vehicles, and equipment.) The Casualty coverages protect against liability claims. Coverages include General Liability, Workers Compensation, Professional Liability, and many others. Most small businesses will find the third option most attractive. A Business Owners Policy or a BOP.

The benefit of the BOP is that it packages the general liability and commercial property. The packaging allows for more efficient and effective coverages. As it relates to Kentucky Business Insurance, BOP’s provide more coverage at less cost.

Knowing the coverages you need is more than half the battle

Business insurance is written in five major coverage lines. These lines are identified and briefly described below:

Commercial General Liability Insurance (or CGL) Protects when actions of the insured or an employee lead to property damage or bodily

injury of another. The policy should also provide coverage in the event the business must defend itself in a court of law.

Commercial Property Insurance The primary target of this coverage is owned and possibly leased buildings. In this section, you will also find coverages for the business personal property. This includes furniture, inventory, tools, some equipment and more.

Commercial Auto Often referred to a Business Auto it covers vehicles that are owned or leased by the company. As a personal auto policy does, the Commercial starts as liability coverage. Comprehensive and collision coverages can be added, as well as other additional items. A good example of a valuable add-on is a coverage know as hired or non-owned. It provides protection to an employee or volunteer autos during work-related activities.

Inland Marine Insurance One use is equipment or mobile equipment operated off-site known as commercial floaters. There are many more coverages that fall into this section.

Workers Compensation used to provide financial remuneration to employees injured while performing work-related activities.

There are many more coverages, most of which fall under one or more of the primary lines above. A few examples include:

  • More specialized liability coverages include:
  • Professional Liability or Errors and Omissions (E&O)
  • Garage Liability a form of CGL for auto garages, shop, dealers and more
  • Directors’ and Officers’
  • The property section contains many optional coverages and endorsements. What if any of it do you need? Including items such as
  • business interruption (aka business income),
  • earthquake coverage
  • flood insurance
  • water backup
  • utility disruption,
  • equipment breakdown and many more.
  • Trucking insurance is an example of a specific form of commercial auto insurance. Another form that we often see business auto insurance is referred to as hired and non-owned.
  • inland marine is our all other buckets. Below are just a few examples.
  • Bailee’s Coverage– Property of others under your temporary care. Think about a Dry Cleaner. Do they have coverage clothing? That’s Bailees.
  • Builder’s Risk- Insurance while a building or home is under construction.
  • Cameras
  • Communication equipment and towers
  • Computer Coverage
  • Contractors Equipment
  • Commercial Floaters
  • Property In Transit

Identifying risk and understanding coverages

For centuries mankind has solved problems by finding solutions or answers to our questions. While it’s great to have a trusted resource or go to for every issue, there are times in life where we are on our own. When this happens, logic and common sense will go a long way.

If I don’t own a building do I need property coverage?

You might. Do you have an inventory or equipment that should be insured? Even if you don’t own a building, you still might need to insure one.

Does your lease require you to insure the building?

My business is family owned and operated; everyone that works here is related to the owner, me, the owner.

Do I need workers compensation insurance?

Kentucky business owners have the right to reject workers compensation coverage. If they’re not business owners, the state workers compensation commission will expect everyone to have insurance. Workers Compensation can be complex. That’s why we request clients to speak with an attorney before waiving any coverage. Learn more at Kentucky Workers Comp.

Why do I need CGL and E&O insurance?

It is possible. Some professions should have both. The coverages cover two different sets of risk. Why E&O or professional liability is typically associated with professional services, it also provides protection in the event of incomplete or shoddy work. Something that your CGL will not cover. Learn more.

Questions, feel free to reach out to a TruePoint agent. You can reach us at (502) 410-5089.

No-Fault Insurance

Posted on by Brad Smith
Insurance term, definition, deductible, insurance deductibe, what is a deductible,

How auto accidents are resolved vary by State

State auto insurance systems fall into one of two general approaches.  The majority (38 states) operate under Tort laws.  Tort law enables wronged parties the ability to seek compensation from the people or parties responsible.  

The remaining 12 states use an approach that is referred to as the No-Fault insurance system.  No-Fault does not mean that no one is at fault.  Providing additional insights into the no-fault system is more of a challenge.  In its purest form, no-fault insurance means that regardless of fault, each party or their insurance company are responsible for the loss.  A more accurate representation is that each party is required to cover their own losses up to a threshold.  The system was initially adopted by 22 states under the premise of reducing litigation cost and ultimately the over cost to consumers.

Kentucky operates under a no-fault insurance system.  The Kentucky no-fault process is sometimes referred to as a choice no-fault insurance system. Kentucky no-fault system applies to both personal vehicles as well as business vehicles written on a commercial insurance policy.    

Deductible

Posted on by Brad Smith
Insurance term, definition, deductible, insurance deductibe, what is a deductible,

An deductible or insurance deductible is a fixed dollar amount or percentage that is retained by the insured. In the event of a claim (most often property claims) the insured will be required to come up with the deductible amount declared in the policy before receiving the insurance companies obligation.

What is an Insurance Deductible and why do I have one?

Posted on by Brad Smith
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Many insurance policies have deductibles. A deductible is a set dollar or percentage amount of a claim. The insured is responsible for paying this part before any payments will be released by the insurance company. The purpose of insurance is to reimburse the insured in the event of a loss. Insurance companies pool risks, which work to make payments more affordable for all. Insurance works because it accepts large financial exposures, spread over a geographically diverse group. Most of us have at some point dropped and broken an egg. Did your insurance company replace the broken egg? Insurance, the mechanism that we use to spread risk, fails to work if it is expected to cover all losses. Items below a certain threshold significantly reduce the effectiveness of insurance. Deductibles work to stabilize the insurance process. By reducing the number of small claims, deductibles reduce inefficiencies.

How Insurance Deductible Benefit Consumers

While consumers may find it difficult to accept, deductibles lead to lower premiums. Don’t take my word; you can demonstrate the theory yourself. You most likely have the ability to raise and lower deductibles on your policy. Re-quote your coverage; using both higher and lower deductibles. What you will find is that premiums rise as deductibles decline. You will have proof that the cost of insurance declines with higher deductibles.

How Insurance Deductible Benefit Insurance Companies

Why do I need an insurance deductible? Deductible reduces insurance fraud. What is a deductible?

Moral Hazard My Great Grandmother used to tell me that locks keep honest people honest. For insurance companies, deductibles can be viewed the same way that my Great-Grandmother saw locks. Example: Ed is trying to sell his boat. The best he can get is $1,200, but he still owes the bank $1,500. Instead of taking a $300 loss he could call his insurance company and reports it as stolen. Then he would have the $1,500 to pay off the boat.No! In this case, the $1,000 deductible removes the incentive to commit insurance fraud. It significantly reduces the chances of a loss for the insurer.

Deductibles reduce exposures to Moral Hazards: Locks keep honest people honest.

higher deductibles, lower premium. What deductible should I have?


Morale Hazard Unlike moral hazards, which are the result of an illegal action, morale hazards are more akin to neglect. Individuals that willing to expose insured property to hazards are considered morale hazards. For example, leaving a cell phone on your front porch isn’t illegal. It could be a perfectly beautiful day or a torrential storm. Would it be illegal if a 4 year old mobile phone was left in a hail storm? No. But this phone is old, and it has an insurance policy. Is it illegal to use the storm as an avenue for a new phone? Probably not. But there are clear ethical issues. This is a moral hazard.


Deductibles reduce exposures to Morale Hazards: Locks keep honest people honest.


Claims Cost: Relative to the size of the loss, insurers pay out a significant amount more on smaller claims. This is due to the considerable impact of fixed cost.
Deductibles improve efficiencies: Insurance is intended for catastrophic losses or larger financial exposures.
Deductibles occur on most property coverages. The property would be tangibles such as buildings, homes, vehicles and other real property. Until very recently deductibles have almost entirely excluded from liability claims. Giving consumers the option to include deductibles liability coverages is becoming more common.
Deductibles are a form of risk retention. They serve as a way to level the playing field for both the insurance company and the insurer. They give insurance companies a tool to reduce fraud and other manipulation. Deductibles also work to enhance the efficiencies of the insurance process. When used responsibly deductibles make it easier for everyone to minimize risk.

Definition: Renters Insurance

Posted on by Brad Smith
Renter's Insurance protects your personal property and comes with a bonus: It may generate a serious savings on your auto insurance policy.
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Renters Insurance provides personal property coverages for individuals. Also referred to as a tenant’s policy. It protects personal property; excluding buildings, such as homes, dwellings or other structures.

A tenant’s insurance policy is similar in many ways to a Homeowner’s Policy. The most significant difference is that there is no building coverage. The coverages provided by the Renters’ Insurance policy include:

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Personal Property coverages often start with a minimum limit of $25,000. But raising this limit to meet the insured’s requirements is seldom a problem.

Liability coverages start around $100,000, with both lower and higher limits available. The coverage provides financial protection to the insured. It protects against accidents causing bodily injury and is a result of actions of the insured. The policy protects not only the insured, but others in the household, and in some cases pets.

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Temporary Housing is another benefit provided by this policy. It provides coverage should damage from a covered cause of loss force you to vacate. Included in the renter’s policy is a loss of use benefit which provides tenant’s short term housing in the event of damage to their apartment.

Additional Coverages Available coverages can be added by endorsement that provides unique protection. One of the more common occurrences is when jewelry limits are too low. Increasing the limits on jewelry, or most other collectibles is seldom a problem. The same is true for boats, personal watercraft, ATV’s and many other personal belongs.


What dictates which losses will be covered under a Property and Casualty insurance policy? The Covered Causes of Loss. Obviously, having a clear understanding of what damages will be covered is essential. Covered Causes of Losses are standard list or forms.

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The Covered Causes of Loss for all policies comes in one of the three forms listed below:

1. Basic fire, lightning, explosion, smoke, windstorm, hail, riot, civil uprising, aircraft, vehicles, vandalism, leakage from sprinklers, sinkhole, and volcanic activity

2. Broad in addition to Causes of Loss covered by the basic form falling objects, the weight of snow, ice or sleet, water leakage from appliances, and collapse from specified causes

3. Special is Also known as the all risk coverage, as this form covers all risk unless they are specifically excluded.


Today most landlords require tenants to have a renter’s policy. If you are confronted with the requirement, don’t view it as an excessive demand. Even though a renters’ insurance policy coverages are similar to a homeowner’s, they are significantly cheaper.

Many insurance companies provide a discount on auto policies to anyone that as a package policy. In most cases, the addition of a renter’s policy creates the package policy. At this point, the cost is insignificant. It is almost as if the insurance company is paying you to buy the renter’s policy. If you have a good insurance and driving history, you should definitely look into a renter’s policy. Even if you don’t give us a call. You never know.