Just wondering how you long time agents handle it when someone with a much older low value car, say a 1995 Grand AM insists on keeping a $500 deductible? I am getting a lot of orphans or people who want a review and they have cars with a low book value and insist on a deductible. One example is a guy that called me last week, he has a 1997 car and the retail blue book in excellent was $750 and this was not a guy with a perfect record, he had several tickets so it was $500 a month. He was very resistant to even discussing anything, I told him if he totaled his car he might only get a few hundred dollars. He said since it had low miles and good paint his current agent said it was a good idea and they would take care of him. I am not sure I believe that, but do you really try to educate people that want a low deductible on a car that is so old it isn't worth it. Do you just shut up and take their money? Do you just not even mess with them?
Question of Ethics/Education
- Thread starter mplsmm
- Start date
- 8,707
Don't sell P&C but wouldn't you just show them two options what they have and what you recommend and let them decide.
- 1,016
are you selling standard or non-standard?
I assume you only sell standard just based on the $500/mo quote. even with a bad driving record, that's ridiculously high for such an old vehicle.
If so, you're better off letting them go because your companies don't want their business.
- 6,457
Give you my not an agent caveat.
Actually I need to find a good KS independent p&c agent I can discuss some of these issues with.
In answer to your question, you just started on Medicare with your mom or mother-in-law, don't remember which.
To me, a parallel to your auto question is choosing Medicare supplements.
(Ignoring MA plans as an option) you can explain some plan characteristics and present Plans F, G and N -in addition maybe K, L and HDF. Some of your clients will not make a rational (from your perspective) choice for a number of reasons. So you can write or decline the business.
As one of those irrational individuals, my inclination would be to go with Norwayguy's advice/question.
There was a thread awhile back, I have now forgotten the specific issue, but there was going to be a lawsuit involved and there were some questions around a checklist. If this is serious enough to you, you could consider using a checklist, to be signed by the customer, which contained an other comments section. You could note in that section that you advised the customer that the deductible level was not economic for their vehicle but they preferred to retain it. and you both initial that note.
Actually I need to find a good KS independent p&c agent I can discuss some of these issues with.
In answer to your question, you just started on Medicare with your mom or mother-in-law, don't remember which.
To me, a parallel to your auto question is choosing Medicare supplements.
(Ignoring MA plans as an option) you can explain some plan characteristics and present Plans F, G and N -in addition maybe K, L and HDF. Some of your clients will not make a rational (from your perspective) choice for a number of reasons. So you can write or decline the business.
As one of those irrational individuals, my inclination would be to go with Norwayguy's advice/question.
There was a thread awhile back, I have now forgotten the specific issue, but there was going to be a lawsuit involved and there were some questions around a checklist. If this is serious enough to you, you could consider using a checklist, to be signed by the customer, which contained an other comments section. You could note in that section that you advised the customer that the deductible level was not economic for their vehicle but they preferred to retain it. and you both initial that note.
- 15,041
I guess it depends on if you think the person is otherwise a worthwhile client. I can promise you, you'll have an issue at claim time if the car is totaled, which almost any accident would do it. If you would otherwise write them, then try to discuss going liability only and if they won't, just document that you offered it. Perhaps even quote it as well as comp/collision with liability.
At the end of the day, its not your insurance and not your premium dollars. All you can do is advise and then decide if you want the business or not. As long as you are at least trying to explain it, then I believe you are morally and ethically doing the right thing.
I believe she means $500 deductible for comp/collision. On a vehicle with a blue book of $750, I can't begin to see how this makes sense. I suspect the person is paying the value of the car every year or two depending on the rates.
- 1,016
it doesn't make sense. but you would be surprised.... I've seen this happen quite often, just not as extreme as this scenario (I usually see it with vehicles with 1500-2500 values). it usually involves people that have been with the same company for a long time. they don't realize that they are paying for their vehicle every year or so. people tend to underestimate the impact of depreciation on a vehicle, especially if it's a vehicle they financed and paid off.
I always ask these people.... "how much would you get if you were to total this vehicle?" ....... the answer is almost always either "I don't know" or a value higher than reality.
the good thing is, these are the type of people that are easy to win over if you sit down with them for five minutes and educate them..... most of them will get it. but not all of them.
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- 232
Jeez....
You're questioning a "low deductible"??
A lot of carriers won't even offer Collision on a car this old, because it's just asking for trouble. ACV and all that......
1) Show them what they're paying in Collision premium
2) Compare that number to the ACV of the car
3) Tell them to bank that premium money for if they need to replace the car
4) Sell them Comp+UMPD if that option is available (both are very cheap here)
You're questioning a "low deductible"??
A lot of carriers won't even offer Collision on a car this old, because it's just asking for trouble. ACV and all that......
1) Show them what they're paying in Collision premium
2) Compare that number to the ACV of the car
3) Tell them to bank that premium money for if they need to replace the car
4) Sell them Comp+UMPD if that option is available (both are very cheap here)
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