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Recently, I was contacted by a gentleman who had Utah insurance at levels 25/65/25. I asked him whether he knew what those levels meant. He said no.
I suggested this scenario: "Imagine that you lose control of your vehicle in the snow and hit a pedestrian crossing the street. The young child has $50,000 worth of injuries. How much of that would you want your insurance company to cover?" He responded, "All of it."
Well, his current policy would only cover half of it. He would need to come $25,000 out of pocket to pay for injury to that child. I also explained that if he rear-ended a newer vehicle, that his policy would only pay $25,000 to fix the other person's car. New Ford F250s are for sale at many dealerships around here for $40,000 a pop. Teslas, BMWs, Audis, and others go for far more than that.
I offered him 50/100/100 coverage — double the bodily injury and four times the property damage. In addition, I increased his medical coverage (PIP) to $100,000. I don't know how much he had previously, but it was probably around $3,000. I explained that if he got into an accident, with that level of coverage, regardless of whether it was his fault, he would have $100,000 to pay for his medical bills and lost wages.
All of this was about $1.50 cheaper a month. He said he wanted to think about it. I said fine and forwarded him a proposal. I've been calling him twice a week for almost a month now. He never calls back.
What gives? Double the coverage for less money? Isn't this a no brainer?
Sorry, that explanation still doesn't make sense to me. How hard is it to say, "Hey, after I got your quote I found new company Y, which saved me even more. Better luck next time!"
Isn't that far better than just getting two new voicemails a week from some guy you are stringing along?
Recently, I was contacted by a gentleman who had Utah insurance at levels 25/65/25. I asked him whether he knew what those levels meant. He said no.
I suggested this scenario: "Imagine that you lose control of your vehicle in the snow and hit a pedestrian crossing the street. The young child has $50,000 worth of injuries. How much of that would you want your insurance company to cover?" He responded, "All of it."
Well, his current policy would only cover half of it. He would need to come $25,000 out of pocket to pay for injury to that child. I also explained that if he rear-ended a newer vehicle, that his policy would only pay $25,000 to fix the other person's car. New Ford F250s are for sale at many dealerships around here for $40,000 a pop. Teslas, BMWs, Audis, and others go for far more than that.
I offered him 50/100/100 coverage — double the bodily injury and four times the property damage. In addition, I increased his medical coverage (PIP) to $100,000. I don't know how much he had previously, but it was probably around $3,000. I explained that if he got into an accident, with that level of coverage, regardless of whether it was his fault, he would have $100,000 to pay for his medical bills and lost wages.
All of this was about $1.50 cheaper a month. He said he wanted to think about it. I said fine and forwarded him a proposal. I've been calling him twice a week for almost a month now. He never calls back.
What gives? Double the coverage for less money? Isn't this a no brainer?
I'm speculating, but he sounds unsophisticated. Maybe it just sounds like too good of a deal to be true to him?
Also, I am wondering as the last poster did who the two insurance companies are. One thing I can never wrap my head around is someone who has always had insurance with Company A. Therefore, the idea that they could ever have insurance with another company is just beyond them. Even if they have never even made a claim some people are completely convinced that they have to have insurance with Allstate, Farmers, Progressive, GEICO, inc. even if these are not particularly good companies.
I wish the fundamentals of car insurance were taught during driver training programs when kids attended high school. Most people seem completely ignorant of what "bodily injury liability" or "property damage liability coverage means.
Sorry, that explanation still doesn't make sense to me. How hard is it to say, "Hey, after I got your quote I found new company Y, which saved me even more. Better luck next time!"
Isn't that far better than just getting two new voicemails a week from some guy you are stringing along?
Yeah, as mentioned it's irrational. Someone pestering me with multiple follow ups is more likely to be ignored than just answered. You gave me the quote. I'll follow up if I'm interested. Otherwise leave me alone.
Sales people don't seem to understand how many people are wired this way. He's not "stringing you along", he got a quote and he'll get back to you if interested. Maybe he got a better quote elsewhere. Why do you think repeated voicemails are going to suddenly get him to buy? He's not a "prospect" and he owes you nothing. That behavior is why folks give car salesmen and the like fake numbers and screen calls.
I consider myself a moderately intelligent person who understands contracts better than the average bear, having practiced law for 31.5 years. I've even litigated a couple of auto insurance policies, but it's far from my specialty. But if you'd related the information set out above, I'd start to get a serious case of MEGO (my eyes glaze over). As with my profession, your second, professional language is something you and other insurance people understand, but laypeople almost certainly don't. Specifically, while I've seen the three-number thing divided by slashes a lot, I couldn't begin to tell you (or anyone else) what the numbers stand for. If people don't understand what you're saying, at some point (often the beginning), they'll just tell you they'll think about it...and then forget it.
There is an easy solution-- set the explanation out, in graphic fashion or at least in some sort of easier-to-follow method, on a web page. A short video with these sorts of graphics might be even better, because you're more likely to come across as an authority who's there to help people.
What gives? Double the coverage for less money? Isn't this a no brainer?
You're overestimating the intelligence of the American consumer.
What you should have done was match his coverage at a substantial reduction in premium (people understand that) and, after delivering the policy, then suggest the advantages of increasing his limits.
When it comes to insurance, the average consumer has no clue about rates, coverages, and claims. Its really too bad, since a single event for an underinsured and uneducated consumer could be financially catastrophic.
For one thing, we are taught - appropriately in most cases - that if it sounds too good to be true it probably is. He probably doesn't believe that he can get more coverage for less money and assumes there is a catch that you won't tell him and he can't spot.
And then, some people have had life long insurance with the same company, properly the one their parents always had.
Or maybe he figures no matter how much coverage he has, there will always be an expert to sell him a potential horror story where he won't have enough.
Recently, I was contacted by a gentleman who had Utah insurance at levels 25/65/25. I asked him whether he knew what those levels meant. He said no.
I suggested this scenario: "Imagine that you lose control of your vehicle in the snow and hit a pedestrian crossing the street. The young child has $50,000 worth of injuries. How much of that would you want your insurance company to cover?" He responded, "All of it."
Well, his current policy would only cover half of it. He would need to come $25,000 out of pocket to pay for injury to that child. I also explained that if he rear-ended a newer vehicle, that his policy would only pay $25,000 to fix the other person's car. New Ford F250s are for sale at many dealerships around here for $40,000 a pop. Teslas, BMWs, Audis, and others go for far more than that.
I offered him 50/100/100 coverage — double the bodily injury and four times the property damage. In addition, I increased his medical coverage (PIP) to $100,000. I don't know how much he had previously, but it was probably around $3,000. I explained that if he got into an accident, with that level of coverage, regardless of whether it was his fault, he would have $100,000 to pay for his medical bills and lost wages.
All of this was about $1.50 cheaper a month. He said he wanted to think about it. I said fine and forwarded him a proposal. I've been calling him twice a week for almost a month now. He never calls back.
What gives? Double the coverage for less money? Isn't this a no brainer?
I wouldn’t waste my time. If the guy is too stupid to understand a simple higher coverage doesn’t cost much more than base coverage I would move on. When you keep calling the guy thinks you’re desperate and i guarantee he’s saying “dude stop calling me” to himself.
Let him get in a accident. I guarantee the “I should of” will be the first thing he thinks of. Some people are like stubborn mules. Let him figure it out.
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