Auto Insurance

FOCUS: First thing you need to understand is there is a huge difference between the Price of Insurance (the Premium) vs. the Cost of Insurance (the resulting cost of Being Under – Insured).

Secondly, Auto Insurance is less about the CAR then it is about YOUR LIABILITY. Cars can be replaced, the COST of a LIABILITY CLAIM can break you.

Auto Insurance Basics…

My first car was a 1964 Ford Galaxy 500 that my Parents bounght for me and my Dad and I partially rebuilt. It leaked oil like crazy. But it was mine. I remember the joy of being able to go, get in my car and just GO when and where I wanted. I had arrived. Of course, that freedom came with a price…. My Car…. My Insurance. Luckily my Dad had a great insurance agent. You may have heard me talk about him before. His name was Bud.

Bud taught me that Insurance is about paying for claims. That is what these huge companies are all about. Of course, they are in business to make money, but they need to pay claims and the State Regulators reguire them by law to have so much money set aside for just that reason. Anything over and above this is the shareholders’ profits. And you are a very small piece of the puzzle – no disrepect intended. But this is why why need to have an Agent that you trust, and one that is working on your side.

In California alone, there is approximately one auto accident every 10 minutes. The majority are minor “FENDER BENDERS.” But even these Fender Benders can reach into the thousands of dollars. Are you aware of how many electronics and sensors are now packed into your fender. What once was a piece of steel strapped to the front and rear of your car has become a high tech wonder that can now help the car park itself. Wow.

As for the PRICE vs. the COST of Insurance. If you are found to be RESPONSIBLE for an accident, remember that you are not just responsible for fixing the other car. You could be responsible for Medical Bills including Chiropractor and Hospital Cost. Already you can feel the Cost of Insurance increasing. Then, on top of that, you include Lost Wages and Pain and Suffering – now we are talking hundreds of thousands.

If you then add the Lawyers – there are Court Costs and Legal Fees. Over the last several years, Jury Verdicts in an Auto on Auto Accident have increased to the tune of about $700,000. If you throw in any Bodily Injury and the number can easily jumps into the MILLIONS of DOLLARS.

You do not want to be on the losing end of this kind of claim with “State Minimum” Insurance. Auto Insurance is about protecting YOU and NOT THE CAR against these situation, these Accidents, when they happen. If you are shopping insurance on PRICE alone then you are not protecting yourself against the COST of Insurance. And I would go as far to say that any Insurance Professional that lets you do that is not working in your best interest. One Litmus Test is this… If they suggest that you take less Uninsured Motorist coverage than you have Liability – run. They either know very little about insurance, or simply want to make a sale.

We work with you to achieve the balance in coverage and price. Our goal is to put you in the Best Coverage for the Best Price. We can take the time to explain the coverage. But you are the one who will have to decide if paying an extra $30 or $40 dollars a month is worth DOUBLING your Liability Coverage. And even then we have strategies to help control the Price.

Schedule your call through the Link to the left.