Should I Report It?

[Lyn]

Really, you plan on using your health insurance? Personally, I hope to never have a claim that would cause me to hit any deductible. Office visits are one thing, but whether the deductible is $5,000 or $500, I really hope that nothing happens to my family to cause me to hit either.

Picking your deductible isn't just about not filing claims and keeping future premiums low due to rateable surcharges. It is about keeping your current premium low because you know you are unlikely to have a large claim such that you'd even need insurance. Going from a $1000 to a $2000 per person deductible in health insurance really is a not event for most people. The majority of the population isn't going to hit either one, so why not keep the difference in premium in your pocket? Odds are, one or two years at the higher deductible will save you more in premium than the difference between deductibles.

Yes, I plan on using my health insurance. It's inevitable, the only question is when. Automobile insurance is different in that I could realistically go my entire life and never have to file a claim. As a matter of fact, I currently have two clients that are in their 70s and have never had to use their auto policies. Granted they are both wealthy ranchers that pay cash for their vehicles and buy only liability, but still no claims. I guess I am just not comfortable playing the odds with my health insurance.

 

[nationalbroker]

I think there are other people who experienced, some of them tried to report this but not sure if they got a positive report.

 

[Bertolinoins]

Any Progressive agents...I notice on the ads they list both a way to go direct and a pitch for agents...Do you guys have to kick in on the commercials?

No, we do not have to pay for co op advertising with Progressive. Progressive, Mercury and Safeco do a great job of driving customers to their independent agents through their advertising efforts.

I don't blame anybody for going direct... because it is up to the independent agent to provide enough value to convince them otherwise. Those that belong direct (young, single vehicle, not a homeowner, etc) seem to find that model and those that actually need an agent (couple, homeowner w/ toys, life insurance needs, etc) seem to find their way to an independent agent. For the most part... we are not even targeting the same market. I take accounts away from Geico, 21st century, etc all the time but only when the transition makes sense (married and combining households, home purchase, etc).

 

[arnguy]

Vol, thank you for defending my answer. We are in 100% agreement. Lyn, IMHO the health insurance should be for the catastrphic and/or expensive events, not for the sniffles and routine exams.

 

[VolAgent]

Vol, thank you for defending my answer. We are in 100% agreement. Lyn, IMHO the health insurance should be for the catastrphic and/or expensive events, not for the sniffles and routine exams.

Exactly. You may think you are lowering your exposure by going to a lower deductible, but you are not. You will more than pay for that lower deductible. Your premium will go up enough to more than make up the difference over a few years. Just as a rough example, if going from a $5000 to a $2500 deductible means your chances go to 1 in 3 of hitting that deductible in any given year, guess what? You'll pay that $2500 difference in deductible in less than 3 years.