Automobile Insurance rates are going up, get ready! Most Insurance companies are paying out more in claims than they are taking in premium. Why? Claims are at an all time high due to today’s distracted drivers. Everyone is on their phones and add texting to the equation means more collisions. The 2nd factor is all the new high-tech features on new cars. All the collision avoidance and safety features are embedded in the windshield and bumpers. At the end of the day, it’s costing Insurance Companies more money to repair or replace a vehicle. With all this going on Friendlyguyinsurance.com is still winning new business every day. We are winning against companies like Geico and even Wawanesa.
When talking with a potential new client about auto insurance, I typically hear the words “full-coverage”. Many consumers are under the assumption that if they have full-coverage that they are really fully covered. If you are at fault in a traffic collision, most of the time there will be a law suit. We do live in CA. where everyone is so sue happy. Let’s face it, if you are going to get sued, you are going to be sued BIG; attorneys do not sue just a little. The average automobile law-suit in CA. is around $200,000. So let’s say you have 15/30 bodily injury coverage and you are sued for $100,000. Your insurance carrier will write a check for the $15,000 and wash their hands at that point. Who do you think they will come after for the remaining $85,000? YOU!!! They will come after your assets, equity in your home and even garnish your paycheck up to 25%. So did full-coverage help in this scenario? If your current Insurance Agent is not having these types of discussions with you, perhaps it’s time to find another agent.