If someone raises the deductible and lowers the coverage to make the sale and DOES NOT tell the customer what would you call it?
I Cant Win! Why Are Consumers So Price Oriented?
- Thread starter Milkman1265
- Start date
If someone raises the deductible and lowers the coverage to make the sale and DOES NOT tell the customer what would you call it?
- 182
First, there is a dec page preceding the actual policy, and it does indeed tell the customer, right there on the front page of whatever policy they happen to be signing. In this case, as the OP said, they said "I didn't know, but it is ok, since it saved money", but how could they not know when it is the first page of the policy?
Maybe I am wrong here, and please correct me if I am (and I could be.. am not an agent). Every insurance policy I have ever bought (just 20 or so) or handled a claim on (only thousands.. per year) has had a declarations page in the front of the policy, prior to the actual policy language, and sometimes following a "thanks for your business" letter. It spells out coverage very clearly, and usually, the deductible is pretty obvious as well (though you do have to hunt for it on some of them).
Not every consumer reads the paperwork. Now maybe they could or should read the declaration page but some people are primarily verbal communicators and they depend upon what they are told.
If you make significant policy changes to make the policy 'cheaper', you have an ethical obligation to point those out before the person purchases the policy.
In all likelihood, he did, but simply talked through them so quickly that it didn't register. Or, it did register and the client was okay with it, since they wanted the lower premium.
Deductibles are always funny business. Every client has an opinion on them. Every agent has an opinion. Most agents try to sell the client their opinion, rather than letting the client pick and choose.
Dan
In all likelihood, he did, but simply talked through them so quickly that it didn't register. Or, it did register and the client was okay with it, since they wanted the lower premium.
Deductibles are always funny business. Every client has an opinion on them. Every agent has an opinion. Most agents try to sell the client their opinion, rather than letting the client pick and choose.
Dan
Last edited by a moderator:
- 182
Always read what you sign. Pretty straightforward. I am not saying that the agent did or did not mislead, because frankly we do not have that information at our disposal. We just have hearsay from another agent who is upset about losing his commissions. If the agent did indeed mislead the insured, well, brimstone upon him. The insured bears a certain degree of responsibility too, however, as they should be prudent enough to read what they sign, and to double check it before paying the premium. The only person who would have a valid excuse for not doing so would be an illiterate who was incapable of reading the first page of the policy that displays coverage and deductibles.
I think that you were impulsive to make such strong accusations without the information required to make such a declarative statement. Maybe that is why I have a successful adjusting firm.. We wait until we have facts before making judgements that can have a negative outcome on anyone, be it carrier, agent, broker or insured. We have no problem at all making the judgement or pointing the finger, but we make it a point to gather the facts before doing so.
I think Dan presents a more likely scenario.
+1 on the 3 options tactics. I always offer a what I call a "Good, Better, Best" option... just like a tire shop. It gives them a visual representation coverage and price trade offs. Use some scenereos to illustrate possible outcomes of underinsuring your home or auto. Real life examples are great too !
- 15,041
You grossly overestimate how many people actually read their policy. Haven't you had people argue that flood was covered on their homeowners when they lacked a flood policy?
- Thread starter
- #29
- 736
i want to chime in about reading the policies, 95% of my market DOES NOT read anything, they take the agents word for it. He simply did not bring up the deductible, so it wasnt even talked about. The coverage yes for the dwelling he say you can insure for less. But he did just skip over deductible.
They wont know until they get the policy 3-4 weeks later. In my case, i was told by the underwriter that i had a competing quote and sent me a copy.
You give them a bunch of papers they all just sign and pay. There are very little consumers that would actually READ what their signing.
and to add to Volagent's comment, i have disclosure and signed statements that flood or water back up was rejected by the insured on a written statement, a bill, and verbally. When claim comes they all say you didnt tell me!
They wont know until they get the policy 3-4 weeks later. In my case, i was told by the underwriter that i had a competing quote and sent me a copy.
You give them a bunch of papers they all just sign and pay. There are very little consumers that would actually READ what their signing.
and to add to Volagent's comment, i have disclosure and signed statements that flood or water back up was rejected by the insured on a written statement, a bill, and verbally. When claim comes they all say you didnt tell me!
Last edited:
Sounds like PROGRESSIVE!!
- - - - - - - - - - - - - - - - - -
Here's my opinion, as a consumer and as an agent.
As a consumer- I couldn't care less who my carrier is as long as they are well established and my coverages are the same. I only stick with my current carrier because I work for them and can honestly tell people that's who insures me. We are a price driven society and unfortunately MOST people base their decisions on that. That is WalMart is growing and mom-and-pops are going out of business.
As an agent- the higher deductible is easy to justify. I always start at $1000 or more on commercial accounts even if the current carrier I'm quoting against is $500.
Last edited:
Similar threads
