Insurance Facts : How Does Auto Insurance Work?

[pigjubby1]

Ask about EVERYTHING. Ask who "uninsured motorists" are. Guess what? That family member next to you? You guessed it. That person is the "uninsured motorist." 25/50 coverage? LOL. Do you really know what that means? 25K per person and 50K per occurrence. Sound simple? It means 25K for ONE person. That person does not qualify for any of the 50K, just the 25K, maximum. The lower number is what you have as coverage. Throw the second number away when evaluating insurance coverage.

[pigjubby1]

Words are as good as the person they come out of. These are insurance companies and they make billions not out of the goodness of their hearts, but what comes our of their mouths. A promise in court is as good as a promise stopping a bullet. Do your research and have it all in writing and ask questions!!!!!! Ask about the difference in coverages. They are trying to keep you from getting the better deal.

[pigjubby1]

So, when this was all happening, I asked why was I never told this about the additional coverage's being so cheap. Their answer was, and this is no joke....."We are not required to advise you of any additional coverages." And this was from a huge and well respected Southern California insurer that loves to play up the "family values" it upholds in their lovely magazine. You know who they are.

[pigjubby1]

Then the agent is so sympathetic as to why you did not get the additional coverage of $200,00 for only $200 a year more. "Then you watch your life savings go away into the hands of an attorney. You insurer saved $200,000 and only was short of their premium by $200. Yes they made less money ($200) but saved $175,000. That is how they really work Don't believe me?  I was a victim of one!!!!

[pigjubby1]

The funny part is that they are not required to tell you that. They cannot lie to you, but they will not offer it to you. You must ask for it. When you ask the agent, if you are fully covered, their answer is always "Yes." Yes, you are fully covered, as per the law. Which is the bare minimum. So you've left their office thinking you are "fully covered" and then you get in an accident with damages $100,000+ This is about the time when the agent wonders why you only had $25,000 coverage.

[pigjubby1]

Here are the facts. Auto insurance companies take a premium and agents make a commission. Here's the tricky part. They want you to pay the most and get paid out the least. How else would the same company insure you and pay you? That is like dealing with a schizophrenic, but that is what they are like. Two different person altogether. For example, you pay $1,000 per year for $25,000 coverage. But you will not be told that for $200 extra, you can get $200,000 coverage.