Medical Payments

[DiegoInsGuy]

I have a potential client that I am quoting, and they currently have $25,000 of Medical Payments coverage. My company only offers up to $5,000 of Medical payments, which is what I am quoting her.

I will be increasing her UIMBI coverage from 30/60 to 50/100 and am coming in about $120.00 less expensive.
How much of a disservice to her would it be (if any) if I decreased her Med Pay, or is there a way to explain that the BI liability is sufficient and will kick in to cover her and or her passengers in case they are ever injured in an accident, keep in mind I am in CA?

Any help is appreciated.

 

[NCAgent]

I have a potential client that I am quoting, and they currently have $25,000 of Medical Payments coverage. My company only offers up to $5,000 of Medical payments, which is what I am quoting her.

I will be increasing her UIMBI coverage from 30/60 to 50/100 and am coming in about $120.00 less expensive.
How much of a disservice to her would it be (if any) if I decreased her Med Pay, or is there a way to explain that the BI liability is sufficient and will kick in to cover her and or her passengers in case they are ever injured in an accident, keep in mind I am in CA?

Any help is appreciated.

Really looking for Dan since this is CA but doesn't UMBI only work if someone gets hurt in your car and you weren't at fault and the other person has lower (or no) limits? It won't help if someone is hurt in your car and you cause the accident. Med Pay is there to make sure, regardless of fault, someone can get medical attention. If you cause it then it is one of the only things helping the people in the car- if you didn't cause it then it still helps to float medical bills while the insurance carrier is sorting things out. One thing to try is asking them what their health insurance deductible is and if they travel around with a lot of people with no health insurance. If they have a 2-5k deductible then they should be fine. Keep in mind med pay is per person (at least in NC) so it can satisfy a family deductible really quickly.

I think 5k is good but for some people they might want more... I will always offer more if I can. It wouldn't surprise me you are coming lower- med pay can really raise some rates on insurance here in NC. Probably because it is easily abused since it pays regardless of fault TO YOU and then the BI claim (if any) will still pay the same bills, basically putting money into the pocket of the insured if the claim plays out right.

 

[GreenSky]

My dislaimer is that I haven't sold auto in probably 25 years so this may be dated.

Med Pay is a no-fault benefit. It used to pay in addition to any other health insurance but I believe it simply coordinates.

So if the prospect has medical coverage with an out of pocket of $5K or less, the med pay from the auto won't pay more than $5K.

As far as protecting passengers, either her BI will pay if she's at fault, the other party's BI, or UM.

It's unlikely that she needs more than $5,000. Sell her more U/M instead. It's much more valuable.

And if she doesn't have medical insurance, she's too stupid to be your client.

Rick

 

[NCAgent]

If you are EXCEPTIONALLY worried about it then go ahead and go to 250/500/100 limits (or a 500CSL if applicable) and sell an umbrella with the UM/UIM endorsement. Now the clients have 1M+ in insurance for others or themselves during an accident. Beats the **** out of 5k med pay.

 

[DiegoInsGuy]

Thanks for all of the input..She's on Medicare Rick so she's not to stupid..Haha

I just wanted to be sure I wasn't down playing her current coverage. Putting her into something worse just to save her $100