Why I Will Never Offer to Save You Money On Your Car Insurance
I am going to put it out there as bluntly as possible, but please bear with me as I explain.
As an insurance agency owner I am not in the business of saving you money.
I am here to protect you from losing everything you have and will have in the event of an accident.
That being said, I love it when I can save people money.
9 times out of 10 I can save you money on your insurance but I have standards to uphold here.
I am not one of those discount bargain bin insurance companies and I will not write a policy that leaves my clients underinsured.
This is not an algebra class so I am going to try to illustrate this without getting too mathematical.
State minimum auto insurance is $25,000/$50,000.
That is $25,000 per person for a total of $50,000 per accident.
That is ridiculous in my opinion.
Our most recent statistics at this time are as follows: Average Vehicle Liability Award - $383,050 Average Premise Liability Award - $444,561 That means if you have state minimum insurance you are stuck with the bill of over $333,000! Where does that come from? Probably everything you own.
And then your 401k, IRA, your kids' 529 or college savings, and then you can pay off the rest over the next 20 years or so while trying to rebuild your life.
So, who would risk driving with this much on the line? Well, right now, 20% of drivers on the road have state minimum coverage.
One company actually promotes and spends a lot of money on a celebrity endorser for state minimum insurance.
What's scary is there's another 20% out there that have either under the minimum or no insurance at all! When you put those two together that means that if you are involved in an accident in which you are not at fault, there is a 40% chance that the person that is at fault has state minimum or less insurance coverage.
An insurance professional has an obligation to protect you from this.
I know of many reputable agencies that will not write state minimum policies because they leave you overexposed.
You do not need to know all the facts and figures and the possible exposures you face, but your agent should have the conversation with you at least once and as many times after that as it takes until you have the proper coverage in place.
This does not mean, however, that you are going to be paying a lot for it.
Every insurer is different, but most do not charge very much more for better coverage simply because people with better coverage, typically, have fewer claims.
This is where it becomes very rewarding as an agent.
It happens quite often that we can give our clients 5x or 10x the coverage they currently have and either save them money or at least be within 10-20% of what they were paying.
So, as always, use your agent.
She/he is there for you and if they are not, call a new one.
As an insurance agency owner I am not in the business of saving you money.
I am here to protect you from losing everything you have and will have in the event of an accident.
That being said, I love it when I can save people money.
9 times out of 10 I can save you money on your insurance but I have standards to uphold here.
I am not one of those discount bargain bin insurance companies and I will not write a policy that leaves my clients underinsured.
This is not an algebra class so I am going to try to illustrate this without getting too mathematical.
State minimum auto insurance is $25,000/$50,000.
That is $25,000 per person for a total of $50,000 per accident.
That is ridiculous in my opinion.
Our most recent statistics at this time are as follows: Average Vehicle Liability Award - $383,050 Average Premise Liability Award - $444,561 That means if you have state minimum insurance you are stuck with the bill of over $333,000! Where does that come from? Probably everything you own.
And then your 401k, IRA, your kids' 529 or college savings, and then you can pay off the rest over the next 20 years or so while trying to rebuild your life.
So, who would risk driving with this much on the line? Well, right now, 20% of drivers on the road have state minimum coverage.
One company actually promotes and spends a lot of money on a celebrity endorser for state minimum insurance.
What's scary is there's another 20% out there that have either under the minimum or no insurance at all! When you put those two together that means that if you are involved in an accident in which you are not at fault, there is a 40% chance that the person that is at fault has state minimum or less insurance coverage.
An insurance professional has an obligation to protect you from this.
I know of many reputable agencies that will not write state minimum policies because they leave you overexposed.
You do not need to know all the facts and figures and the possible exposures you face, but your agent should have the conversation with you at least once and as many times after that as it takes until you have the proper coverage in place.
This does not mean, however, that you are going to be paying a lot for it.
Every insurer is different, but most do not charge very much more for better coverage simply because people with better coverage, typically, have fewer claims.
This is where it becomes very rewarding as an agent.
It happens quite often that we can give our clients 5x or 10x the coverage they currently have and either save them money or at least be within 10-20% of what they were paying.
So, as always, use your agent.
She/he is there for you and if they are not, call a new one.
Source...