Without knowing your situation it’s difficult to answer that, I generally spend a little time with a client looking to insure so many lines (although I don’t do health) but we’ll give it a shot:
Blind sale only:
Auto: It depends on the state you’re in and likely the area of that state you live. In the majority of states (approx 25/50/25 liability) a step (or more) above the minimum would be suffiecient coverage in nearly all accidents. A small percentage of accidents will pass limits over 50/100/25 but the added premium for limits of 100/300/50 are generally negligable.
Renter’s insurance is great… many people don’t even bother. You’ll want to review your contract to see what is and is not covered – especially limits on personal effects/property. It may be necessary to take seperate eendorsements on certain items you own not covered to appreciable limits. Things like guns, jewlery, electronics are often covered at limits well below what they are actually worth.
Since you didn’t mention motorcycles or other “special lines” items I’ll assume you don’t have them… if you do, often motorcycle injuries or injuries sustained while participating in “high risk” activities is not covered by your health insurance.
I’ll also assume you don’t have any pets. If you have any “dangerous” pets (large dogs, pit bulls, etc) or exotic pets (reptiles, poisonous animals) you may want to check for liability coverage for those animals.
Since you’re posting here I might assume you are a professional in the insurance industry. Any “professional” position that puts you in a situation to give advice or aid would require E&O insurance. If my assumption is correct that’s certainly something to look into.
I might try to sell you on an umbrella policy depending on your situation (I’ll be honest, I don’t usually try for that on renters but that’s in Ohio, if I were in in NYC I might change my approach).
Along with health, I also don’t write life (different license) so I’m not really prepared/able to advise you on that. $10k seems a little low depending on what you’re looking to pay for after your death but I’m not qualified to advise you on that.
Basically, long story short… I don’t know enough about you from one paragraph to sell you as I would in my office. Instead of recommending coverages I would recommend you find an agent in your area willing to spend some time with you learning about your insurance needs, your place in life, what you expect from your insurance, and the laws of your particular state. There’s no substitute for an agent who cares about you and who knows you.
1. What’s liability?
2. I don’t care I have fresh deer meat.
3. If I’m injured I will call my lawyer from the accident scene and he will get me $$$$.
4. Yes. I pay my full premium every month so I have full coverage.
5. The accident was caused by the deer jumping into the road, I was drunk, I did’t pay my full premium so I have no insurance and I’m in jail, so who cares.
Unfortunately, most people that have actual agents wouldn’t be able to answer any of those questions either, simply because most people don’t care enough to have coverages explained to them. They just want insurance so that they can drive.
I will say that it is likely that the ones that buy auto insurance online carry lower limits, more often the state minimums, due to the fact that the demographic is largely trying to save as much money as possible.
Heh… that’s one of my favorite answers when I try to sell someone on the importance of liability insurance.
“Oh, that’s okay… I’m a safe driver, I’m not going to have an accident. I just need insurance so I can get my plates.”
Even more scary is the idea of Direct-to-consumer homeowner’s and life. With a little research just about anyone can figure out auto coverages (I’m a good example of that), but homeowner’s…
It’s funny, people will spend more time researching which digital camera to buy than they will their insurance coverages.
hey anon – i have auto (i’m middle of the road auto, not the bare minimum state required, but the next step up) and renters insurance and then through my company, i have health, dental, vision, and a $10K life insurance policy. Should there be another insurance I need?
I’ve purchased both ways and it all depends on the service. I’ve had agents not explain anything to me (and as you all know learning by reading the policy can cause brain damage) and I’ve had web sites that gave it all to me in plain language. I’ve also had the reverse. Just because it’s direct to consumer doesn’t mean the consumer won’t get any information.
Oh, and I’m two steps above with full liability, collision and comprehensive coverage on my vehicle, full coverage for everything but flood on the house with riders for my guns and jewelry, $500k term-life, 1-yr life from work, $135k supplemental life from work, vision, medical and dental. If anything I’m over-insured and I know most of what will happen if I have to file.
If you’re an agency owner, you better wake up! A good MAJORITY of agencies are run by CSR’s who:
1) dont cross sell
2) sell only price
3) dont really care about the insureds overall needs
4) dont really care or have no stake in the agency’s overall revenue
Direct Companies have the same problem – although their staff are incented for cross-selling and upselling.
Price is it, folks. Auto is a commodity product now. Coverages are no longer sold.
Homeowners is next. Agents already use the internet to view the 7 year old photos on the county auditor’s website instead of going to see the risk. Companies can do the same thing.
BOP’s will be there as well. Now that there is a comparative rater for BOP’s it will make it even easier to sell price instead of coverages.
All other industries are now operating on price. Clothing, Food, Energy, Jewelry, everything. It’s just a matter of time.
Notice that all of the above can be done WITHOUT an agent. We all need to work to change the marketplace or we will slowly work our way out of revenue.
My auto premiums are middle of the road, not enough to make me want to shop it. but the important thing for me is having a real person, with a name and address, someone I actually know who is my advocate when I need to update my coverages or, most important, to ensure that my claim, if I ever have one, is handled expeditiously and fairly. I like having an agent; saving 15% to go with GEICO is not any real savings at all, if all I am saving is the agent’s commission. If GEICO could really save me money, it should be in the rates but my company’s rates are competitive when taking the commission out of the mix…..
Thanks Anon – I wasn’t trying to challenge you. I recently got into the insurance business and work with Work Comp…so I’m sill a little green when it comes to other lines of Insurance. So I was sincerely asking for your thoughts! Thanks for your help! And have a great weekend!
just becuase you buy direct online doesn’t mean you’re buying the minimum safeauto or whatever rediculous minimumns companies like that promote.. I had progressive for years because i thought i had a good price. service was decent. no need to shop around. then i spoke to a few people a few months back and realized my price was in fact astronomical, so i shopped it and found several companies that would take me on for far less. i ended up going w/ unitrin direct. i pay less than half of what i paid before. same exact coverages. and no, they’re not the minimums, i have excellent coverage. i think it’s just a way to cut out the middleman and save some of your hard earned money…
I’d like to see a couple extra questions on this survey comparing results from Direct-To-Consumer policyholders vs Agent Written policyholders:
1) What are your current limits of liability?
2) If you were involved in an accident where you hit a deer, which coverage would pay?
3) Are you covered for your own medical expenses if you’re injured in an accident? For how much?
4) Do you have “Full Coverage”?
5) If you hit and totalled a $50k luxury car and caused $150k in medical bills to the driver, what would happen.
…etc.
Okay, I’ll take the Pepsi Challenge:
Without knowing your situation it’s difficult to answer that, I generally spend a little time with a client looking to insure so many lines (although I don’t do health) but we’ll give it a shot:
Blind sale only:
Auto: It depends on the state you’re in and likely the area of that state you live. In the majority of states (approx 25/50/25 liability) a step (or more) above the minimum would be suffiecient coverage in nearly all accidents. A small percentage of accidents will pass limits over 50/100/25 but the added premium for limits of 100/300/50 are generally negligable.
Renter’s insurance is great… many people don’t even bother. You’ll want to review your contract to see what is and is not covered – especially limits on personal effects/property. It may be necessary to take seperate eendorsements on certain items you own not covered to appreciable limits. Things like guns, jewlery, electronics are often covered at limits well below what they are actually worth.
Since you didn’t mention motorcycles or other “special lines” items I’ll assume you don’t have them… if you do, often motorcycle injuries or injuries sustained while participating in “high risk” activities is not covered by your health insurance.
I’ll also assume you don’t have any pets. If you have any “dangerous” pets (large dogs, pit bulls, etc) or exotic pets (reptiles, poisonous animals) you may want to check for liability coverage for those animals.
Since you’re posting here I might assume you are a professional in the insurance industry. Any “professional” position that puts you in a situation to give advice or aid would require E&O insurance. If my assumption is correct that’s certainly something to look into.
I might try to sell you on an umbrella policy depending on your situation (I’ll be honest, I don’t usually try for that on renters but that’s in Ohio, if I were in in NYC I might change my approach).
Along with health, I also don’t write life (different license) so I’m not really prepared/able to advise you on that. $10k seems a little low depending on what you’re looking to pay for after your death but I’m not qualified to advise you on that.
Basically, long story short… I don’t know enough about you from one paragraph to sell you as I would in my office. Instead of recommending coverages I would recommend you find an agent in your area willing to spend some time with you learning about your insurance needs, your place in life, what you expect from your insurance, and the laws of your particular state. There’s no substitute for an agent who cares about you and who knows you.
Likely responses:
1. What’s liability?
2. I don’t care I have fresh deer meat.
3. If I’m injured I will call my lawyer from the accident scene and he will get me $$$$.
4. Yes. I pay my full premium every month so I have full coverage.
5. The accident was caused by the deer jumping into the road, I was drunk, I did’t pay my full premium so I have no insurance and I’m in jail, so who cares.
None of those situations/questions matter….because like the insured’s always say “Nothing ever happens!”
Unfortunately, most people that have actual agents wouldn’t be able to answer any of those questions either, simply because most people don’t care enough to have coverages explained to them. They just want insurance so that they can drive.
I will say that it is likely that the ones that buy auto insurance online carry lower limits, more often the state minimums, due to the fact that the demographic is largely trying to save as much money as possible.
Heh… that’s one of my favorite answers when I try to sell someone on the importance of liability insurance.
“Oh, that’s okay… I’m a safe driver, I’m not going to have an accident. I just need insurance so I can get my plates.”
Even more scary is the idea of Direct-to-consumer homeowner’s and life. With a little research just about anyone can figure out auto coverages (I’m a good example of that), but homeowner’s…
It’s funny, people will spend more time researching which digital camera to buy than they will their insurance coverages.
hey anon – i have auto (i’m middle of the road auto, not the bare minimum state required, but the next step up) and renters insurance and then through my company, i have health, dental, vision, and a $10K life insurance policy. Should there be another insurance I need?
I’ve purchased both ways and it all depends on the service. I’ve had agents not explain anything to me (and as you all know learning by reading the policy can cause brain damage) and I’ve had web sites that gave it all to me in plain language. I’ve also had the reverse. Just because it’s direct to consumer doesn’t mean the consumer won’t get any information.
Oh, and I’m two steps above with full liability, collision and comprehensive coverage on my vehicle, full coverage for everything but flood on the house with riders for my guns and jewelry, $500k term-life, 1-yr life from work, $135k supplemental life from work, vision, medical and dental. If anything I’m over-insured and I know most of what will happen if I have to file.
If you’re an agency owner, you better wake up! A good MAJORITY of agencies are run by CSR’s who:
1) dont cross sell
2) sell only price
3) dont really care about the insureds overall needs
4) dont really care or have no stake in the agency’s overall revenue
Direct Companies have the same problem – although their staff are incented for cross-selling and upselling.
Price is it, folks. Auto is a commodity product now. Coverages are no longer sold.
Homeowners is next. Agents already use the internet to view the 7 year old photos on the county auditor’s website instead of going to see the risk. Companies can do the same thing.
BOP’s will be there as well. Now that there is a comparative rater for BOP’s it will make it even easier to sell price instead of coverages.
All other industries are now operating on price. Clothing, Food, Energy, Jewelry, everything. It’s just a matter of time.
Notice that all of the above can be done WITHOUT an agent. We all need to work to change the marketplace or we will slowly work our way out of revenue.
My auto premiums are middle of the road, not enough to make me want to shop it. but the important thing for me is having a real person, with a name and address, someone I actually know who is my advocate when I need to update my coverages or, most important, to ensure that my claim, if I ever have one, is handled expeditiously and fairly. I like having an agent; saving 15% to go with GEICO is not any real savings at all, if all I am saving is the agent’s commission. If GEICO could really save me money, it should be in the rates but my company’s rates are competitive when taking the commission out of the mix…..
Thanks Anon – I wasn’t trying to challenge you. I recently got into the insurance business and work with Work Comp…so I’m sill a little green when it comes to other lines of Insurance. So I was sincerely asking for your thoughts! Thanks for your help! And have a great weekend!
just becuase you buy direct online doesn’t mean you’re buying the minimum safeauto or whatever rediculous minimumns companies like that promote.. I had progressive for years because i thought i had a good price. service was decent. no need to shop around. then i spoke to a few people a few months back and realized my price was in fact astronomical, so i shopped it and found several companies that would take me on for far less. i ended up going w/ unitrin direct. i pay less than half of what i paid before. same exact coverages. and no, they’re not the minimums, i have excellent coverage. i think it’s just a way to cut out the middleman and save some of your hard earned money…