Insurance FAQs provided by Glenn Martin Insurance
Q: What kinds of questions should I be expected to answer when I’m applying for an insurance policy in KY? Why do insurers need so much information?
When Glenn Martin Insurance is deciding whether or not to offer car insurance to a potential customer, we want to know about your previous driving record, whether they have any recent accidents or tickets, and what type of car will need to be insured.
Glenn Martin Insurance offers a variety of programs for different customers. Adults with good driving records will generally pay less for car insurance, than young drivers with traffic tickets. In order to determine which program you qualify for, Glenn Martin Insurance will need basic information about you.
In addition to your age, gender and driving experience, information about the car you drive, and your driving record, is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a compact car. Also, someone in Louisville who commutes 30 miles each way is more likely to be in an accident, than someone who commutes via bus and only drives on weekends.
Q: What are the advantages to using an agent to purchase insurance?
Car Insurance FAQs in Kentucky
Q: I have an older car whose current market value is very low – do I really need to purchase car insurance?
Often times the cost of repairing the damages to an older car is greater than its value. In these cases, your insurer will usually just “total” the car and give you a check for the car’s market value less than the deductible. Many people with older cars decide not to purchase any physical damage coverage.
Q: What is the difference between collision physical damage coverage and comprehensive physical damage coverage?
Comprehensive provides coverage for mostly other direct physical damage losses you could incur, including theft. For example, damage to your car from a hailstorm will be covered under your comprehensive coverage.
Q: What factors can affect the cost of my car insurance in Kentucky?
The type of car you drive, the purpose the car serves, your driving record, and where the car is garaged can all affect how much your car insurance will cost you in Louisville, KY.
Even your marital status can affect your cost of insurance. Statistics show that married couples tend to have fewer and less costly accidents than those who are single.
Q: What are some practical things I can do to lower the cost of my home insurance?
It’s not surprising to find quotes on homeowners insurance that vary by hundreds of dollars for the same coverage on the same home. When you shop, be careful to make sure each insurer is offering the same coverage.
Another way to lower the cost of your home insurance is to look for any discounts that you may qualify for. For example, many insurers will offer a discount when you place both your car and homeowners insurance with them. Other times, insurers offer discounts if there are deadbolt exterior locks on all your doors, or if your home has a security system. Be sure to ask Glenn Martin Insurance about any discounts that you may qualify for.
Another easy way to lower the cost of your homeowners insurance is to raise your deductible. Increasing your deductible from $250 to $500 will lower your premium, sometimes by as much as five or ten percent.
Q: What does homeowners insurance cover in Kentucky?
Q: What is the difference between “actual cash value” and “replacement cost”?
Q: What factors should I consider when purchasing homeowners insurance?
Below is a checklist of things you should consider when you purchase homeowners insurance:
- Determine the amount and type of insurance you will need. The coverage limit of your house should equal 100% of its replacement cost. If your policy limit is less than 80% of the replacement cost of your home, any payment from Glenn Martin Insurance will be less than the full cost to replace your home – you’ll have to pay the rest out of your own pocket. Also, decide if the personal property and personal liability limits are adequate for your needs.
- Decide which, if any, additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement, an earthquake endorsement or a jewelry endorsement?
- Once you have decided on the coverage you want in your homeowners insurance policy, please consult us at Glenn Martin Insurance. Glenn Martin Insurance will be able to help you determine if there are any gaps in coverage that you might not have been aware of, explain the details of the policy’s exclusions and limitations, as well as recommend an insurance company that will live up to your expectations.
Q: What are the policy limits (i.e., coverage limits) in the standard homeowners policy?
The home and other structures on the premises are protected on an “all risks” basis up to the policy limits. “All risks” means that unless the policy specifically excludes the manner in which your home is damaged or destroyed, there is coverage. The policy limit for the home is set by the policy owner at the time the insurance is purchased. The policy limit for the other structure is usually equal to 10% of the policy limit for the home.
Losses to your personal property are covered on a “named perils” basis. “Named perils” means that you have coverage only when your property is damaged or destroyed in the manner specifically described in the policy. The policy limit on the coverage is equal to 50% of the policy limit on the home. Limits for the coverage of additional expenses that the policy owner may incur, when the residence cannot be used because of an insured loss, is equal to 20% of the policy limit on the home.
The coverage limit on personal liability is determined by the policy owner at the time the policy is issued. The coverage limit on medical payments to others is usually set at $1000 per injured person.
Q: Where and when is my personal property covered?
Q: Do I need earthquake coverage in Kentucky? How can I get it?
Life Insurance FAQs
Q: How much life insurance should an individual own?
Important factors include:
- Income sources and amounts other than salary earnings
- Whether or not you are married and, if so, what is your spouse’s earning capacity
- The number of individuals who are financially dependent upon you
- The amount of death benefits payable from social security and an employer-sponsored life insurance plan
- Whether any special life insurance needs exist – (mortgage repayment, education fund, estate planning need, etc.)
Calculating the correct amount of life insurance to buy in Kentucky is not as simple as it appears. We recommend contacting Glenn Martin Insurance at: 502-245-8870 to help determine the right amount of coverage you need. As an independent agent, Glenn Martin Insurance has unbiased advisors that will help you avoid buying too much, show you appropriate and optional coverages for your need, and recommend a company that will best serve your interests in Kentucky.
Q: What about purchasing life insurance for a spouse or children?
It is of utmost importance that the income-earning capacity of the primary breadwinner be fully protected, if possible, through the purchase of the required amount of life insurance. This should be done before purchasing life insurance for children or on a non-wage-earning spouse. Life insurance on a non-wage-earning spouse is often recommended for the purpose of paying for household services lost due to this individual’s death. In a dual-earning household, it is important to protect the income earning capacity of both spouses.
Q: Should term insurance or cash value life insurance be purchased?
First, recognize that in any life insurance purchasing decision, two questions must be answered:
- “How much life insurance should I buy?”
- “What type of life insurance policy should I buy?”
The first question should always be initially resolved. For example, the amount of life insurance that you need may be so large that you can only afford it through the purchase of term insurance, since term insurance has a lower premium.
If your ability to pay life insurance premiums is such that you can afford the desired amount of life insurance under either type of policy, then it is appropriate to consider the second question – what type of policy to buy. Important factors affecting this decision include your income tax bracket, whether the need for life insurance is short-term or long-term (e.g., 20 years or longer), and the rate of return on alternative investments possessing similar risk.
Q: How does mortgage protection term insurance differ from other types of term life insurance?
Q: Can an existing life insurance policy be used to provide for the repayment of an outstanding mortgage loan?
Q: Is credit life insurance a good buy?
Renters Insurance FAQs
Q: Why would I want to buy renters insurance?
Q: How does a renters insurance policy protect my personal property?
- Fire or lightning
- Windstorm or hail
- Vandalism or malicious mischief
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water or steam
- Sudden and accidental damage from artificially generated electrical current
- Volcanic eruptions (but this doesn’t include earthquake or tremors)
Renters insurance coverage applies to your personal property no matter where you are in the world. This means you’re covered when you are on vacation as well as at home.
Q: Why do some apartment complexes require tenants to have renters insurance?
Q: What if I share my apartment with a roommate? Do we both need to have renters insurance?
Umbrella Insurance FAQs
Q: What is a personal umbrella liability policy?
Q: How do I know if I need a personal umbrella liability policy?
However, in our very litigious society, even individuals with modest incomes and assets are often subjects of large lawsuits. Since those with modest incomes are even less able to pay damages than a wealthy individual, Glenn Martin Insurance recognizes the need to provide coverage limits greater than what can be obtained from their homeowner insurance or car insurance policies.