All too usually customers return to my workplace with their auto policy from another insurance company and raise me to “beat the price”. The question I raise is “do you recognize what you have got currently and what you are paying for”? Frighteningly, an alarming variety of them says “I even have no plan, nobody has ever explained it to me.”
At this point, it is time to stop and perform what I call the three E’s, one thing I do with each client. Justify, Educate, and Empower them to form the right, informed decision. You see, if the person does not understand what coverage’s they have, or even what they are for, how can they apprehend if it’s adequate?
There’s merely too much data in an insurance policy to hide in one article, so during this one, I can cover my pet peeve, Uninsured and Underinsured Motorist coverage.
Bodily Injury Liability Insurance
When trying at a Dec page (the primary page of your policy) you will see a list of various coverages. One of them is bodily injury liability insurance, that covers a person if you hit them in an accident. For argument’s sake, for instance, it’s 100/300. That covers the other passengers for 100 thousand bucks each, up to three hundred thousand per accident. This is okay coverage, and there is nothing wrong with it.
Now if you look a very little farther down the list of coverages you may see Uninsured Motorist bodily injury liability insurance and Underinsured bodily injury liability insurance. This is what covers you and your family in an accident. Repeat that to yourself, this covers my family, necessary, right? I absolutely hate to determine a 100/300 for bodily injury liability insurance and then see Underinsured and Uncured Motorist at a lower limit or perhaps declined.
In the state of Pennsylvania, the minimum coverage you would like to be legal is 15/30 bodily injury liability insurance. That means if somebody hits you and you’re injured, their insurance will only cover you for fifteen thousand bucks with a max of thirty thousand per accident. If you’ve got a spouse and a pair of tiny kids like I do, thirty thousand greenbacks won’t go terribly far.
The chances of you being in an accident with somebody uninsured or underinsured is concerning one in five. Because of this, I continually highly advocate my customers, and everyone for that matter, to not use these a pair of coverages when attempting to save cash. I would rather raise the deductibles on comprehensive and collision than driving around knowing my family isn’t covered properly should somebody hit us with no insurance. It’s merely not priced the chance.