"I just want the lowest Price!"- The customer
The vast majority of those shopping for insurance quotes are mainly focused on the price , not so much on coverage. This is an understandable and a common situation , however the validity of the low price can be drastically under minded by the widely ignored question as to what you are really paying for as far as coverage.
Here is the most straight forward scenario that people encounter on a daily basis and is something I explain to my customers who initially did not have adequate coverage when they came to my agency. It's Unfortunate that many agents out there quote the California state minimum coverage of 15/30 liability limits for their clients. These limits state that each person injured in an accident that the insured is at fault in will only be covered for 15k dollars and the most that the insurance company will pay for the entire accident is 30k. The last time I was hospitalized overnight for a minor procedure, the bill to my insurance carrier was over $45,000. Now a-days an MRI or Cat-Scan can easily run 6k-10k alone and that does not even include any treatment, hospital fees, doctor fees or any of the other numerous costs that can add up very quickly when visiting a hospital. You might wonder how this could effect you as a consumer of a simple auto insurance policy.. here is how; Lets say that you rear end a vehicle and the driver and/or passengers sustain injuries. You are only carrying the California minimum coverage of 15/30 and you may not even know you are since no insurance agent ever explained the relevance of carrying the right coverage. The injured party ends up racking up 60k in medical bills each and you are only covered for 15k for each person. In this case, there is still an outstanding balance you may be liable for of 90k total. There are plenty of personal injury attorneys who make a great living working on contingency and obtaining large settlements for their customers by way of wage garnishment, court orders and attachment of assets. Furthermore, if the injured party is properly protected on their policy, their agent may have suggested to them that they carry uninsured/underinsured motorist coverage, something I will not write a policy without. This protects the insured from those on the road with no coverage or not enough coverage to cover a loss. Although this coverage will pay the claim for the injured party , this does not necessarily let you off the hook as liable for paying the insurance company back that money. Most carriers will have a team of bounty hunters also known of "subrogation teams" who will try and pursue any means possible of recovering money from those liable in a claim.
In conclusion and to the point I am making, if you are underinsured on your auto insurance, you may get a large bill on the back end for the difference that was not covered if you are at fault and liable for an accident. Quality of coverage is not worth compromising, especially when the downside risks are so great. I am always available to help you find the right coverage while still helping you obtain a competitive price based on eligible discounts. Contact my agency or visit my website for more information.
Thanks for reading!
Jeff Milber, Agency Owner
The vast majority of those shopping for insurance quotes are mainly focused on the price , not so much on coverage. This is an understandable and a common situation , however the validity of the low price can be drastically under minded by the widely ignored question as to what you are really paying for as far as coverage.
Here is the most straight forward scenario that people encounter on a daily basis and is something I explain to my customers who initially did not have adequate coverage when they came to my agency. It's Unfortunate that many agents out there quote the California state minimum coverage of 15/30 liability limits for their clients. These limits state that each person injured in an accident that the insured is at fault in will only be covered for 15k dollars and the most that the insurance company will pay for the entire accident is 30k. The last time I was hospitalized overnight for a minor procedure, the bill to my insurance carrier was over $45,000. Now a-days an MRI or Cat-Scan can easily run 6k-10k alone and that does not even include any treatment, hospital fees, doctor fees or any of the other numerous costs that can add up very quickly when visiting a hospital. You might wonder how this could effect you as a consumer of a simple auto insurance policy.. here is how; Lets say that you rear end a vehicle and the driver and/or passengers sustain injuries. You are only carrying the California minimum coverage of 15/30 and you may not even know you are since no insurance agent ever explained the relevance of carrying the right coverage. The injured party ends up racking up 60k in medical bills each and you are only covered for 15k for each person. In this case, there is still an outstanding balance you may be liable for of 90k total. There are plenty of personal injury attorneys who make a great living working on contingency and obtaining large settlements for their customers by way of wage garnishment, court orders and attachment of assets. Furthermore, if the injured party is properly protected on their policy, their agent may have suggested to them that they carry uninsured/underinsured motorist coverage, something I will not write a policy without. This protects the insured from those on the road with no coverage or not enough coverage to cover a loss. Although this coverage will pay the claim for the injured party , this does not necessarily let you off the hook as liable for paying the insurance company back that money. Most carriers will have a team of bounty hunters also known of "subrogation teams" who will try and pursue any means possible of recovering money from those liable in a claim.
In conclusion and to the point I am making, if you are underinsured on your auto insurance, you may get a large bill on the back end for the difference that was not covered if you are at fault and liable for an accident. Quality of coverage is not worth compromising, especially when the downside risks are so great. I am always available to help you find the right coverage while still helping you obtain a competitive price based on eligible discounts. Contact my agency or visit my website for more information.
Thanks for reading!
Jeff Milber, Agency Owner
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