by slappy » Thu Oct 23, 2008 08:44 pm
There is currently an AllState Commercial running in my area that takes place in a courtroom with a young man (maybe 17) being sued by another for an accident he caused. The ending states that the young man owes $100K. The other lawyer says they are going to start the process immediately to recoup the amoung and the boys lawyer says he doesn't have enough insurance. The other lawyer says they will get it from savings, college fund or any other assets. The boys parents ask if they can do that and the boys lawyer says they can.
I don't sell AllState but I love this commercial because it shows the ramifications of not carrying enough coverage. I actually think it is kind of surprising coming from AllState (no offense to those agents out there that carry AllState) but the agents in my area that we sell against have no problem pushing state minimum to get business instead of taking the customers best interest into consideration. My main point is that this is a great commercial and we should see more of them around.
Have you seen anything or done anything with this same thought in mind?
I don't sell AllState but I love this commercial because it shows the ramifications of not carrying enough coverage. I actually think it is kind of surprising coming from AllState (no offense to those agents out there that carry AllState) but the agents in my area that we sell against have no problem pushing state minimum to get business instead of taking the customers best interest into consideration. My main point is that this is a great commercial and we should see more of them around.
Have you seen anything or done anything with this same thought in mind?
Posted: Fri Oct 24, 2008 01:37 pm Post Subject:
This same issue was brought up in another thread a few months ago. I mentioned then that automatically thinking buying higher limits was not always appropriate as... as this was unpopular... _I_ thought people should obtain insurance to protect themselves... not to protect other people. I'm not saying this is the only thing to consider or even that it's the best way, just that I think people need to keep it in mind. It's kind of nice to see someone agree.
I'll briefly explain what I mean. Should a person who does not have 2 dimes to rub together spend their hard earn money paying for higher limits just so other people are protected? Or is it more appropriate that _I_ take higher limits to protect _myself_ from people like that? So I'm not saying that higher limits are not a bad thing... I'm just shifting the responsiblity to protecting ones self rather then protecting others with the insurance.
Now I moved from FL to UT and I've now realized that at least some states are much more liberal in how a judgement can be collected. But still, even as Lori acknowledges, it's extremely rare that an injury attorney will refuse a policy limits offer and go to court in order to obtain a judgement. I'll have to be honest here... it's because 99.9999999999% of the injury attorneys out there would rather take their 33% of the limits immediately and move on to the next case rather then spend the time to obtain a judgement (a judgement gives them the policy limits and a judgement but what is a judgement going to get them).
With that said, I'm _not_ saying everyone should have state minimum limits. In every or almost every situation state minimum limits are just _way_ to low. Gary, if I remember correctly, FL minimum limits are 25/50/10. Right off the bat, $10k PD limit is _way_ to low. Many people don't have collision insurance so you might hit someone that is willing to take you to court. Get a quote on going from $10k to $20k and I think you will see that it's not much money. In that case you'd be getting a good bank for your buck. FL has $10k PIP and it's non-recoverable. So that 25/50 could be view as 35/60. Is this enough for Gary? It _might_ be. But I have to think such a smart fellow might have some assets. I'd recommend that Gary ask his carrier what 50/100 might cost. I increased by BI limits one time and I I think the difference was like $20/year (it was awhile ago). Wow... I could double my protection for $20/year! I did it. But the question here is, how much is enough? Is higher _always_ better? If not (and it's not) where should people stop? I have no doubt that everyone will agree that this is a valid question. As such, if your going to tell someone that they need/should increase their limits, you also need to be able to tell them how high they should go.
I do see the Allstate Commercial as having a good _point_ (very good point), I just think the way it presents itself is more of a scare tactic to get people to automatically increase their limits and it does not provide any other value. It's content is really inappropriate. Let's take the worst possible scenario and present it to everyone to make it look like it's an every day event. It's just a little scumming IMHO. Better to have a commercial telling people they should increase their UMBI coverage.
I also lied about something... I said I'd be brief.
Posted: Fri Oct 24, 2008 01:40 pm Post Subject:
Every state is different. We all know why Florida is so popular with those CEOs who drove their companies into the ground but kept the high salaries and big houses for themselves (MCI, etc). Of course, OJ loves Florida. All for the reasons that Gary stated above.
To each his own with coverage. I hope nobody on this board (or anybody I know for that matter) is put into a situation where these opinions are tested.
I also hope there aren't insurance agents out there telling their customers that all they need is the state minimum because, "Well, if you get into an accident, they can't come after anything you own because everything is exempt. You can wipe out a school bus full of kids - kill every one of them - and their famlies can't touch you. So..don't worry..just carry the state minimum."
Posted: Fri Oct 24, 2008 02:13 pm Post Subject:
I also hope there aren't insurance agents out there telling their customers that all they need is the state minimum because, "Well, if you get into an accident, they can't come after anything you own because everything is exempt. You can wipe out a school bus full of kids - kill every one of them - and their families can't touch you. So..don't worry..just carry the state minimum."
I'm not advocating that either and I doubt it's happening (an agent telling people to buy lower limits?). This is also not really inline with what I was saying.Question... do you "sell" higher limits to people to protect themselves from others with lower limits? For example, if I did not have UMBI, would you try to talk me into buying it? Would you also try to get me to buyer higher limits?
If so, you're telling someone who might hit me to take BI limits to pay the people they might hit and your also telling the person how might get hit to take higher limits to protect themselves. That is actually fine (as BI can be sold for the reasons mentioned in the Allstate commercial)... but my question is this... who's responsibility is it to protect myself?
Yes, I _should_ have BI limits high enough to protect myself _from_ other people. I'm just saying perhaps I should not look at increasing my limits because I can cause someone that much of a loss. Perhaps it's _that_ person's responsiblity to provide themselves adequate limits to protect _themselves_ from me. That may sound selfish but think about it... isn't that a smarter way of looking at it?
Again, I'm not saying everyone should just drop their BI and PD limits to state minimum. I do acknowledge that those coverages really do protect the person who buys them. I'm just pointing out how and why people should consider the amount of those coverages that they obtain.
Posted: Fri Oct 24, 2008 02:47 pm Post Subject:
I'm not advocating that either and I doubt it's happening (an agent telling people to buy lower limits?). This is also not really inline with what I was saying.
Unfortunately, there are agents that do just that. Just to put the business on the books.
Question... do you "sell" higher limits to people to protect themselves from others with lower limits? For example, if I did not have UMBI, would you try to talk me into buying it? Would you also try to get me to buyer higher limits?
It's all part of the process. I would first evaluate your need. Are you a 21 year old college student, living in the dorm, who drives his car maybe 15 miles a week? Those needs are different from a 45 year old man who owns his own business, wife stays home, 3 kids, $850K house, $250K lake house with 2 boats and 4 jet skis, kids plan on going to college and he wants to retire by age 60.
If so, you're telling someone who might hit me to take BI limits to pay the people they might hit and your also telling the person how might get hit to take higher limits to protect themselves. That is actually fine (as BI can be sold for the reasons mentioned in the Allstate commercial)... but my question is this... who's responsibility is it to protect myself?
Ultimately, it is everyone's responsiblity to take care of themselves. But as we all can attest to, society today isn't geared on that philosophy. It is a gimme gimme philosophy. Everyone will SUE, SUE, SUE. So unfortunately, in our responsible attempt to take care of ourselves, we must do things to ensure that we are truly taken care of. And today, that means doing things because we know others won't.
Yes, I _should_ have BI limits high enough to protect myself _from_ other people. I'm just saying perhaps I should not look at increasing my limits because I can cause someone that much of a loss. Perhaps it's _that_ person's responsiblity to provide themselves adequate limits to protect _themselves_ from me. That may sound selfish but think about it... isn't that a smarter way of looking at it?
I agree 100% percent. And there is nothing wrong in being selfish. But you also must be realistic. If you are responsible for causing that above mentioned 45 year old's death in an auto accident, and you have 50/100/50 coverages, do you think his wife will be happy with the 50K your insurance pays her? Yes, he probably has tons of insurance that she will undoubtedly benefit from but the amount can never be enough.
As to UIM, God forbid something happens to you. If you have 50/100/50 auto coverages, will that 50K be enough for your wife to survive should you not be around? Why should you pay for someone else's lack of insurance? Because people don't have insurance. You want to do the responsible thing and make sure your family is taken care of.
Again, I'm not saying everyone should just drop their BI and PD limits to state minimum. I do acknowledge that those coverages really do protect the person who buys them. I'm just pointing out how and why people should consider the amount of those coverages that they obtain.
A responsible agent will ask the right questions and determine the needs of the family. Any agent who just quotes the minimum, as I have said before, is not looking out for the best interests of the client and his/her family.
Posted: Fri Oct 24, 2008 10:23 pm Post Subject:
I think this thread has struck a chord!
At some point you simply just have to draw a line and say I'm not buying anymore liability insurance. I'll take my chances.
Yes, Lori, I have E & O, but ONLY because my #1 favorite company requires it or you can't get contracted. It's an EXTREME waste of money. I may as well burn that money because I see ZERO value in that policy and it's not cheap.
Attorneys sue corporations and insurance companies. They are not going to chase after "Joe the Plumber" to win a multi-million dollar judgment that would never be paid.
Posted: Fri Oct 24, 2008 11:02 pm Post Subject:
Todd, you make some very valid points...and honestly one of the main reason's I have never had an umbrella....because I think in most cases people will take what they can get...I do differ (maybe I'm not real clear on this)...with you in that I think the average responsible adult needs to carry a min of say 100/300/50 just to be responsible...you and I know you can't even buy a decent used car for 10k any more, and 25 or 50k in med bills and a bi can be laughable...that is my point.
Posted: Fri Oct 24, 2008 11:04 pm Post Subject:
I'll take my chances
So Gary let me ask you...you carry 10k in pd, you wack a guy and cause 15k in damages...do you not even feel a moral if not legal obligation to make that right?=============
oh and btw I don't blame allstate, they're in the business of selling ins. and fear sells...they can't have a naked chick on their 'spokes models' back...so this is the next best thing.
Posted: Sat Oct 25, 2008 09:43 am Post Subject:
So Gary let me ask you...you carry 10k in pd, you wack a guy and cause 15k in damages...do you not even feel a moral if not legal obligation to make that right?
Posted: Sat Oct 25, 2008 09:57 am Post Subject:
gary, honey you just quoted me and left?
Posted: Sat Oct 25, 2008 10:38 am Post Subject:
No, I clicked "Submit" when I was going for the quote button.
:evil: Had a great reply all outlined that is now in cyberspace pergatory never to be brought back to life because you my dear replied to this thread while I was in "Edit" mode. :twisted:
:P Do you have liability insurance for my LOST literary masterpiece? :P
Where's Duewee, Cheatum and Howe????
You ARE going to Court now missy!
Add your comment