OVER INSURED?

[Markthebroker]

Right? It's just such an easy transition into asking about life insurance. Even if it's just a quick ask. Your already talking about the auto limits, and how $500k would get paid pretty quickly to a dead person's family.

Yeah, that's a no brainer. Me personally, I don't sell any personal insurance, and life insurance is more trouble than it's worth for me. But I could see someone adding that 15 second pitch at the end of every auto lines discussion. If you only sell and quote 1 out of every 20 or 30 auto insurance conversations, its more than worth it.

 

[marindependent]

Honestly I feel like too many people focus on the wrong thing when considering auto insurance coverage. Turn the Question Around and stop thinking about it as liability coverage.

How much insurance coverage do you want for yourself and your family in an auto accident? $100K/$300K or $500K/$500K? You cannot get $500K in uninsured motorist coverage unless you have $500K in liability coverage. Yes its technically possible for the other person to have all the auto coverage that you will need when you get in a bad auto accident, but it was also possible for that person to have not run that red light. Why rely on it?

 

[Allen Trent]

Honestly I feel like too many people focus on the wrong thing when considering auto insurance coverage. Turn the Question Around and stop thinking about it as liability coverage.

How much insurance coverage do you want for yourself and your family in an auto accident? $100K/$300K or $500K/$500K? You cannot get $500K in uinsured motorist coverage unless you have $500K in liability coverage. Yes its technically possible for the other person to have all the auto coverage that you will need when you get in a bad auto accident, but it was also possible for that person to have not run that red light. Why rely on it?

Great point. In Michigan, that has never really been as big of an issue because Michigan no fault provided everyone with insurance, riding with someone, hit by someone, riding a bike, living with someone to have unlimited PIP coverage. If you had no auto insurance or no one you lived with had any or no one your were riding with or hit by had any, they just hand the entire medical bills for lifetime to the next insurance company in rotation to pay those lifetime of auto injury bills.............and with no fee schedule on any of those bills like happens with Medicare, Medicaid, WC, health insurance. Claims can get into the millions & sometimes tens of millions with claims still open after 30 and 40 years.

But you are correct, there is & was still need for the exact discussion you stated for underinsured or uninsured. Even though BI lawsuits were not as bad in MI because lifetime medical bills were covered, there were still some items you can sue for like death, excess lost wages, pain & suffering. So, UI & UI very important especially considering nearly 30% of drivers drive without auto insurance and another 20-30% with near min 20/40 or 50 BI limits

 

[Tommy34]

The last thing insurance companies have on their mind is if they over-insured us or not, they will surely never let us know unless we figure it out ourselves.

 

[fed up]

It would be difficult to overinsure auto policies but home policies are a different animal altogether. Many homes are overinsured because a customer or bank feels a need to cover the mortgage. A good reason to ask your customers to read their policy and a good agent will notice and rectify the situation

 

[Allen Trent]

The last thing insurance companies have on their mind is if they over-insured us or not, they will surely never let us know unless we figure it out ourselves.

you might be thinking of coverage for your stuff. most insurance companies are definitely worried about over insuring houses, over insuring your liability on a car or your umbrella liability, over insuring your business property, building & liability & & lastly your life insurance. allow items to be over insured creates a massive amount of claims during bad economic times as some people tend to have fires or a bathtub upstairs leak when they are upside down on a mortgage or loan. over insuring on life insurance creates motive to want a spouse or business partner to be gone as it seems like every Dateline NBC show has at least 1 person that died soon after purchasing a sizeable life insurance policy

 

[fed up]

you might be thinking of coverage for your stuff. most insurance companies are definitely worried about over insuring houses, over insuring your liability on a car or your umbrella liability, over insuring your business property, building & liability & & lastly your life insurance. allow items to be over insured creates a massive amount of claims during bad economic times as some people tend to have fires or a bathtub upstairs leak when they are upside down on a mortgage or loan. over insuring on life insurance creates motive to want a spouse or business partner to be gone as it seems like every Dateline NBC show has at least 1 person that died soon after purchasing a sizeable life insurance policy

He posted that so he could place a shameless plug for an overseas insurer on a different page

 

[marindependent]

It would be difficult to overinsure auto policies but home policies are a different animal altogether. Many homes are overinsured because a customer or bank feels a need to cover the mortgage. A good reason to ask your customers to read their policy and a good agent will notice and rectify the situation

Fed Up - interesting point... The exact opposite is the problem here [San Francisco Bay Area] with people not having enough insurance to rebuild their houses. Lots of agents produce policies with too little coverage, sometimes to get the price lower. I guess this goes to show you the point of working with a "Local Independent Agent."

 

[Markthebroker]

Fed Up - interested point... The exact opposite is the problem here [San Francisco Bay Area] with people not having enough insurance to rebuild their houses. Lots of agents produce policies with too little coverage, sometimes to get the price lower. I guess this goes to show you the point of working with a "Local Independent Agent."

Yeah, it's a very serious problem around here. Apathetic and/or ignorant, and/or unethical agents writing in the SF area underinsure buildings all the time.

 

[Allen Trent]

Yeah, it's a very serious problem around here. Apathetic and/or ignorant, and/or unethical agents writing in the SF area underinsure buildings all the time.

You should contact your state & federal legislators to ask for help....oh wait, NVM