“Bundle your home and auto & save!” “Save by bundling your insurance policies together!”

We seem to be inundated with commercials and advertisements telling us to bundle our insurance policies together. What is the reason behind this and is this really a better option for your insurance?

Benefits of Bundling

Discounts

Some of the benefits associated with bundling your insurance policies together are discounts. The more you bundle, typically, the more you save. While the most common bundled policy is the home and auto policy, some insurance companies discount other product bundles such as auto and motorcycle. It depends on each carrier.

Consolidated Billings

Bundling your policies together can help eliminate confusion over your billing. While home insurance may go to your escrow company, it is easier to understand when your bill comes from a single source.

Access to more products

Many companies will require the auto policy to write an umbrella policy. While typically the umbrella policy is written under the property portion of your insurance. Do note, there are some companies who will just write an umbrella policy.

Why would you not bundle?

Sometimes bundling your insurance policies just doesn’t make sense. Some circumstances in which you may not be able to bundle your insurance can be:

• Young drivers
• SR22 Insurance
• High Risk Drivers
• Dangerous dog in household
• Earthquake or Flood Insurance

Every once in a while auto insurance premium may seem too high, but you’re happy with your home insurance carrier. In this instance, you can use the full benefit of an independent insurance agent by writing the home with one carrier and the auto insurance with another carrier.  Just because you’re splitting the policies doesn’t necessarily mean you’ll pay more. An agent in our office can show you all the prices between several carriers and help guide you as to what makes the most sense for your specific situation.

If you’re in the market for a new or replacement insurance policy, you’ve come to the right place. Independent insurance agents are the only agents who have access to multiple top-rated insurance companies. By shopping with an independent agent, you can compare coverage, pricing, payment plans and look at bundling your insurance policies. The benefits of having an independent insurance agent don’t stop there. As your life changes, your agent can adapt to your needs finding you the right new company for your new situation such as getting married, having a teen driver and more. Thank you for the opportunity to help you with your insurance.

The U.S. Dept. of Agriculture cites as many as 2 million collisions with animals occur each year.

It can be a scary moment when you are driving 70 mph on the freeway and a deer or other wildlife comes out of nowhere and runs right in front of your vehicle. Your first reaction may be to slam on the brakes or swerve to avoid the collision and hurting or even killing the animal. But, what happens if you do make contact with the animal and your car is damaged from it?

Are you covered?

It depends on what auto insurance coverage you have purchased. Comprehensive and collision insurance can provide you with coverage.

Comprehensive insurance covers your vehicle when you make contact with an animal while driving.

It is important to keep in mind, however, that if you decided to swerve, missed the deer or animal and strike a tree then you could be covered by collision insurance on your auto policy. Because every insurance carrier is different, their claims department will handle it with the coverage they feel is most fitting to the situation.

Safe Driving Tips To Always Remember

Driving hazards present themselves daily and can occur year-round in every state. Here are three things to always remember when it comes to driving your vehicle and wildlife.

Always stay alert

If you are driving in rural areas, be aware that wildlife is always nearby and keep a lookout towards the sides of the road.

Don’t swerve your vehicle

Swerving cannot only results in a worse injury and more severe accident, but your insurance company might find you at fault if you swerve to miss a deer and end up hitting a tree, another vehicle or guard rail. Regardless, remember to avoid swerving in general. Tightly hold the steering wheel, apply the brakes and stay in your lane.

Be more aware at night

Animals can become more active in the evenings and some travel in groups. If you see one, chances are there are more nearby. If there are two lanes, drive in the lane farthest away from the side of the road.

Tips If You Happen To Hit The Animal

Like any accident, there are a few things to always do immediately.

• Safely pull to the side of the road. Give yourself as much space as possible then turn on your emergency lights.
• Check to see if everyone in your vehicle is okay. Hitting an animal is startling so take a moment to take a few deep breaths to calm your nerves.
• Call the police to report the accident and arrange a tow if necessary.
• For claims purposes, always take photos of the damage to your vehicle and make notes.

If you have questions about your auto or vehicle insurance, contact us! We can provide you with an insurance quote or answer any of your questions.

Many insurance policies contain coinsurance clauses which require policyholders to purchase an amount of insurance that accurately reflects the value of their insured property. If less than a certain percentage of the accurate value is purchased, policyholders may not be able to fully recover in the event of a loss.

Coinsurance clauses can be confusing and often leave policyholders in distress. The good news for policyholders is that a little education can go a long way in this area of insurance law. If you understand the basic principle that you must maintain insurance on a certain percentage of the value of your property, then you will be fully insured when disaster strikes.

WHAT IS COINSURANCE?
Coinsurance is a property insurance provision that penalizes the insured’s loss recovery if the limit of insurance purchased by the insured is not at least equal to a specified percentage (commonly 80 percent) of the value of the insured property. For example, if a building valued at $250,000 is insured with a policy containing an 80% coinsurance clause, the policyholder must purchase at least $200,000 in coverage. If the policyholder purchased less than $200,000, he or she would be responsible for a proportionate share of the loss.

IS A COINSURANCE CLAUSE VALID?
Most commonly, yes. Some states, including Kentucky, have passed statutes voiding coinsurance clauses in property insurance policies which insure risks associated with fire or storm damage on real property. However, in states that have not passed a statute prohibiting coinsurance clauses, courts follow the common law and uphold them.

HOW IT WORKS
The basic formula for determining whether you have enough coverage is:

Actual Amount of Insurance divided by the Required Amount of Insurance then multiplied by the Amount of Loss. This equals the amount the insurance company will pay, less any applicable deductible.

More plainly, let’s assume we have a building valued at $100,000. Under an 80% coinsurance clause, an insured would be expected to insure 80% of these values, or $80,000.

Now, let’s consider two scenarios, the amount of the loss in each case is $30,000: First, the policyholder only carries $50,000 in coverage:

($50,000/$80,000) x $30,000 = $18,750 (less deductible).. The policyholder is forced to pay, or self-insure, the shortfall of $11,250.

Second, the policyholder carries the full $80,000 required under his policy:

($80,000/$80,000) x $30,000 = $30,000 (less deductible). In this example, the policyholder would receive full benefits.

Some policyholders choose to self-insure and rely on savings. However, most policyholders purchase insurance with the intent to be fully covered. As the examples illustrate, the unknowing policyholder can suffer great financial hardship by not purchasing the amount of insurance required by the coinsurance provision.

It is important that all policyholders know whether their policies contain a coinsurance clause and, if so, whether they have purchased the amount of insurance required to receive the full benefits they expect. Regular appraisals can ensure that property values, inflation, and depreciation are taken into account in your insurance limits. An evaluation or appraisal once every three years is a good rule of thumb, but may or may not be sufficient depending on the circumstances.

*Article provided by Griffin Underwriting Services

The cost of repairing or replacing a transmission or engine in a car can be daunting. Many people wonder what exactly is covered by an auto insurance policy. Does an auto insurance policy cover things like transmission repairs, tires, faulty wiring or worn suspension parts?

In short, no, an auto insurance policy will not pay to repair wear and tear items on your vehicle. The only time some items may be covered are when they are damaged as a direct results of a covered loss such as a collision.

Insurance is not designed to repair damaged or worn parts due to normal wear and tear of your vehicle. There is no coverage for things like mechanical failures or maintenance.

So, what options are there to cover these items? When you purchase a vehicle, some dealers offer extended warranty coverage. These warranty policies essentially extend the manufacturer warranty of newer vehicles. This is the type of insurance program that would provide coverage for things like mechanical breakdown of your transmission or engine parts.

If you have questions about car insurance, contact our agency. There are an overwhelming number of choices for car insurance out there, don’t stress! Let the professionals at Trucordia gather quotes from several insurance carriers, presenting you with the best options for your budget and needs! Our agents are here to help guide you through rate comparisons, discounts, flexible payment options and they may have some money-saving tips as well. Get your quote today!