Lower Limits On Auto

[nyc2phi]

Do we have to offer lower limits if the prospect requests it?

I generally do not like to offer anything under 50/100/25 but here in PA we can go as low as 15/30/5

Can I make it a practice not to quote under those limits or am I breaking some kind of rule by telling the prospect my agency does not offer it?

 

[Johnboy]

When I have a potential client with 15/30. I always quote them a min 50/100/50 but try for 100/300. It seem every time the 50/100 is always cheaper than 15/30. In the quote I send them, I tell them that's the lowest our agency offer coverage. I also put a auto liability article explaining it with an example.

 

[CaptiveGuy]

Do we have to offer lower limits if the prospect requests it?

I generally do not like to offer anything under 50/100/25 but here in PA we can go as low as 15/30/5

Can I make it a practice not to quote under those limits or am I breaking some kind of rule by telling the prospect my agency does not offer it?

You can make your own agency guidelines you just have to apply to everyone. You can't say no to 15/30/5 to one client then sell it to your friend to save them money.

Plenty of agents have min. limits guidelines, youthful driver rules, and require packages of auto and home even if the carrier does not.

 

[nyc2phi]

Awesome thanks for the help.

50/100/25 is what we offer minimum to everyone so I'll just keep it that way.

I noticed that we beat a lot of 15/30 with 50/100 as well.

 

[insurance1822]

If you have the conversation about coverage & they're a stupid bum who doesn't care then you most likely don't want them as clients. That being said just offer higher coverage so they know...then write them the minimum limits & wish them the worst.

I won't write 5k property damage though...I'll write 15/30/25 if a bum wants it.

 

[BlockO]

you can educate customers til your blue in the face, some will just not get it.

but I have found, that an agent's best weapon here is price comparison. for example:

"Mr Smith, I just noticed that for $2 a month more, you can double/triple your level of liability coverage. For $2, I highly recommend you take that."

once the customer sees the price difference is very small, they are much more likely to see the added value, and say YES.

 

[zacharyp]

When I have a potential client with 15/30. I always quote them a min 50/100/50 but try for 100/300. It seem every time the 50/100 is always cheaper than 15/30. In the quote I send them, I tell them that's the lowest our agency offer coverage. I also put a auto liability article explaining it with an example.

Can you share the article?

 

[Dave864]

I personally don't offer state minimum liability insurance. I don't want that type of customer who's always shopping on a few bucks a month. My carriers don't have the best market for state minimum so if they're looking to switch for a few dollars, then switching to me is not a good idea.

 

[Johnboy]

Can you share the article?

Auto Insurance Liability Limits: How Much Do You Need?


Here’s an interesting tidbit about auto insurance many people don’t know: bodily injury liability coverage is the most important type of car insurance to have. How much liability coverage is enough, and how can you tell?

Bodily injury liability insurance protects you and your assets in the event you cause a car accident and injure or kill somebody else. If the other party sues you for their injuries and wins, your liability insurance will pay the damages up to your coverage limits. If you don’t have liability insurance, or enough, the courts can—and will—seize any assets you own.

Bodily injury liability auto insurance is required by law in virtually every state. The coverage limits required by law, however, may not cover your needs. For example, in Pennsylvania, the minimum required bodily injury liability coverage is $15,000/$30,000. What that means is that the policy must cover at least $15,000 in liability for each person injured and at least $30,000 per accident.

But what happens if you own a home worth $200,000 and you are found responsible for injuring somebody in a crash and ordered to pay them $100,000 in damages?
This minimum bodily injury liability insurance only covers you for $15,000 for any one person. You will be responsible for another $85,000 in damages, even if it means the court has to put a lien on your house. Furthermore, you could be responsible for these damages if you lend the car to a friend or family member and he or she causes the accident.

 

[Dave864]

Great article! In some states, you don't even have to have assets to protect. After an accident where you did not have enough liability coverage, the court can garnish your wages until the debt is settled. That's why it's still important for clients who live in apartments or don't have the house paid off yet to still carry high limits.