Insurance agent an idiot?

[paliknight]

State Farm was trying to win me over from nationwide. He saw that I only had 25/50 for my property damage coverage.

He said since my car is worth 80k msrp, he recommends higher. Supposedly that means if my car was totaled max I would receive for my car is 25k. I've never heard of that before. I thought that just meant that's the max they would cover the property damaged by my car.

I could have sworn that as long as you have collision and comprehensive they would give you the current value of the car if totaled.

[Relak]

Yes, they're dumb or hoping you are. 25/50 covers property damage caused by your car in the event of an accident. If you were to crash into a fence, the property damage would cover up to 25K in damage to things other than the car and medical bills.. (i.e. a new fence)

[M3 Esq]

Insurance agents...always trying to make a commission.

[boss2k]

In any case 25/50 for my property damage coverage is very low...increase it

[hecho.in.626]

You normally have one cap limit under your property damage liability coverage, i.e. $50 k per claim.
When you see two numbers, i.e. $25k / $50k, that is for your bodily injury liability. First number is per person and second number is total per claim. Other important two number coverages you should have are underinsured motorist bodily injury and uninsured motorist bodily injury.

[shadow191]

I'd consider increasing the limit, it won't change your premiums much at all. I think what you have is pretty much the minimum in the state of GA. So if you are at fault for damage in excess of what your policy covers, you're still responsible.

[jmmoore3]

Ok so the 25/50/25 is liab and only to pay out for the car/people you hit when at fault. The numbers are applied as followed 25k bodily inj per person, 50k total bodily inj max paid if more than one inj, 25k property damage (car, fence, poll ect) what he was trying to probably expl is that your car for example is 80k so if you hit someone with a like car to yours and cause 35k in damages with the policy you have the insurance company pays to your limit of 25k and you owe the rest. Hence why you want higher limits such as 100/300/100. Bodily inj can mount very fast and the 50k total with current coverage will go so fast.

Secondly there is uninsured/underinsured coverage to cover you and your car if someone hits you with low limits such as the 25/50/25 or 15 in some cases or the person w no insurance as all. underinsured and uninsured coverage mirrors your liab limits so you want those higher limits on both to protect yourself.

Sounds like a miscommunication and the agent is trying to do what's best in your interest by suggesting higher limits to better protect you. In the end if he wanted to dupe you he would have done what Nationwide did and give you crappy limits so they could get you the cheapest price and get your business not caring you were "under covered". State Farm agent knows price will be more due to higher limits buts actually seems to care about how you are covered, which says something about each company.

*ive sold insurance, worked claims, and trained agents, confident this was a miscommunication by what you said above.

Hope this helps! Get higher limits 100/300/100 and protect yourself!!

[paliknight]

Originally Posted by jmmoore3

Ok so the 25/50/25 is liab and only to pay out for the car/people you hit when at fault. The numbers are applied as followed 25k bodily inj per person, 50k total bodily inj max paid if more than one inj, 25k property damage (car, fence, poll ect) what he was trying to probably expl is that your car for example is 80k so if you hit someone with a like car to yours and cause 35k in damages with the policy you have the insurance company pays to your limit of 25k and you owe the rest. Hence why you want higher limits such as 100/300/100. Bodily inj can mount very fast and the 50k total with current coverage will go so fast.

Secondly there is uninsured/underinsured coverage to cover you and your car if someone hits you with low limits such as the 25/50/25 or 15 in some cases or the person w no insurance as all. underinsured and uninsured coverage mirrors your liab limits so you want those higher limits on both to protect yourself.

Sounds like a miscommunication and the agent is trying to do what's best in your interest by suggesting higher limits to better protect you. In the end if he wanted to dupe you he would have done what Nationwide did and give you crappy limits so they could get you the cheapest price and get your business not caring you were "under covered". State Farm agent knows price will be more due to higher limits buts actually seems to care about how you are covered, which says something about each company.

*ive sold insurance, worked claims, and trained agents, confident this was a miscommunication by what you said above.

Hope this helps! Get higher limits 100/300/100 and protect yourself!!

How much would they give me for my car though if it were hypothetically totaled?

[jmmoore3]

ACV actual cash value. They would work with NADA and your cars condition to get fair price. There's not a limit like 25k, thats why nicer cars are more expensive regardless due to being more to replace if totalled. Threshold to be totalled varies by company but I believe 70% of value is about right. Meaning if damage exceeds 70% of vehicles value they deem it a total loss.

[dreamingat30fps]

When my 335 was totaled I was actually pleasantly surprised how much I got for it.

[John 070]

Originally Posted by shadow191

I'd consider increasing the limit, it won't change your premiums much at all. I think what you have is pretty much the minimum in the state of GA. So if you are at fault for damage in excess of what your policy covers, you're still responsible.

Exactly....I have 100/300/100. And this costed like $680 per year or something when the BMW was brand new in 2007 (it's more today).

50k property damage is nothing, and it costs little to bump it up. I looked up the actual number and it's $80/yr. for 100k property damage.

Then again, you could argue like my dad who worked in insurance. Never had an accident, not ever. Always pays cash for his car. So he carries nothing but liability. And he's been driving over 35 years. So it really doesn't matter what coverage you have.

Me? Our 3 cars are fully covered, except the 1998 Nissan, for which I dropped the collision. This is a waste because I have never made a claim, but the $100 deductible comp costs $74/yr. I figure maybe if glass damage or even hit a deer or whatever, I know, doesn't make sense...vandalism, etc.

edit ps I don't think you even understand insurance when you leave out an entire category, by saying 25/50 LOL

[Rennsport3.2]

LOL @ driving an M4 with state minimum liability coverage. Be sure to familiarize yourself with the process of subrogation so that you won't be as confused when the insurance company of the party you hit comes after you for everything you have...and don't be surprised when your insurance company turns their back after they pay their $50k on a $100k claim. Do you have $50k in the bank? $100k? $150k? It's okay, they will make payment arrangements with you after your credit score has been obliterated. The good news is that you could always file for bankruptcy and be clean again in seven years.

When I worked as an insurance claims adjuster, I had a claim where one of our clients had a bad reaction to some medication and passed out behind the wheel of his truck. He hit five parked cars, including a Bentley. He had state minimum coverage, which was 15/30 in his state. He woke up in a hospital several days later ~$130k in debt...

[paliknight]

Thank you everyone for the responses. I believed him when he claimed it was too little, but what got me was his explanation of what it covered. He literally asked me how much my car is worth, I told him 80k msrp, then he said if I were to total it that means I only get 25k Max regardless according to my coverage. I was astonished by what he said.

I will increase my coverage, though I always drive like a grandma, but I was apprehensive since he lost credibility with me.

[Biorin]

Originally Posted by paliknight

Thank you everyone for the responses. I believed him when he claimed it was too little, but what got me was his explanation of what it covered. He literally asked me how much my car is worth, I told him 80k msrp, then he said if I were to total it that means I only get 25k Max regardless according to my coverage. I was astonished by what he said.

I will increase my coverage, though I always drive like a grandma, but I was apprehensive since he lost credibility with me.

No matter how well/safely you drive, there's always some idiot out there...

[URBAN LEGEND]

Get some umbrella insurance too while you get the above mentioned/recommended amounts.

[M_Six]

Originally Posted by jmmoore3

Ok so the 25/50/25 is liab and only to pay out for the car/people you hit when at fault. The numbers are applied as followed 25k bodily inj per person, 50k total bodily inj max paid if more than one inj, 25k property damage (car, fence, poll ect) what he was trying to probably expl is that your car for example is 80k so if you hit someone with a like car to yours and cause 35k in damages with the policy you have the insurance company pays to your limit of 25k and you owe the rest. Hence why you want higher limits such as 100/300/100. Bodily inj can mount very fast and the 50k total with current coverage will go so fast.

Secondly there is uninsured/underinsured coverage to cover you and your car if someone hits you with low limits such as the 25/50/25 or 15 in some cases or the person w no insurance as all. underinsured and uninsured coverage mirrors your liab limits so you want those higher limits on both to protect yourself.

Sounds like a miscommunication and the agent is trying to do what's best in your interest by suggesting higher limits to better protect you. In the end if he wanted to dupe you he would have done what Nationwide did and give you crappy limits so they could get you the cheapest price and get your business not caring you were "under covered". State Farm agent knows price will be more due to higher limits buts actually seems to care about how you are covered, which says something about each company.

*ive sold insurance, worked claims, and trained agents, confident this was a miscommunication by what you said above.

Hope this helps! Get higher limits 100/300/100 and protect yourself!!

This. Every word of it. 100/300 or be prepared to pay dearly.

[Taskmaster]

Originally Posted by MKitSS

Yes, they're dumb or hoping you are. 25/50 covers property damage caused by your car in the event of an accident. If you were to crash into a fence, the property damage would cover up to 25K in damage to things other than the car and medical bills.. (i.e. a new fence)

No.

Depending on the state, his uninsured coverage can't exceed his liability. Meaning if it (your ca)was totalled in a not at fault accident, and the other party did not carry any insurance -25k would be the maximum payout (assuming you're not carrying collision coverage ) otherwise, you should be carrying more liability - it's pretty cheap (usually)

Source : former agent.

[Mr Tonka]

I had an insurance agent idiot moment yesterday during my General Liability audit.... turns out my agent reported my estimated annual revenue as $400k. Also turns out that the insurance company uses estimated annual revenue as THE factor to determine your premiums. Lovely that the estimated $400k is only about 6% of my annual revenue. The auditor said that i should expect a "substantial" bill as a result of the audit.

The agent is assuring me the auditor didn't know what she was talking about and is just an information gatherer. I guess we'll see when the audit results return.

Edit: this is business general liability insurance. Figured it was relevant due to the agent fuck up or possible fuck up. Damn agent better be right!!!

[jmmoore3]

Originally Posted by paliknight

Thank you everyone for the responses. I believed him when he claimed it was too little, but what got me was his explanation of what it covered. He literally asked me how much my car is worth, I told him 80k msrp, then he said if I were to total it that means I only get 25k Max regardless according to my coverage. I was astonished by what he said.

I will increase my coverage, though I always drive like a grandma, but I was apprehensive since he lost credibility with me.

It's more about the other crazies on the road. He was talking about the uninsured limits as they usually mirror the liab limits in your case 25k. So he was saying if your car is totalled by an idiot w no insurance you would only get 25k. Raising all limits liab and under/uninsured to the 100/300/100 would cover your 80k car if for mentioned un/underinsured driver totals your car.

Raise your limits as you said and all will be right with the world

[paliknight]

Originally Posted by jmmoore3

It's more about the other crazies on the road. He was talking about the uninsured limits as they usually mirror the liab limits in your case 25k. So he was saying if your car is totalled by an idiot w no insurance you would only get 25k. Raising all limits liab and under/uninsured to the 100/300/100 would cover your 80k car if for mentioned un/underinsured driver totals your car.

Raise your limits as you said and all will be right with the world

Even if uninsured motorist was at fault and totaled my car, I have collision coverage. Wouldn't that cover my case beyond 25k?

[Rennsport3.2]

Originally Posted by paliknight

Even if uninsured motorist was at fault and totaled my car, I have collision coverage. Wouldn't that cover my case beyond 25k?

This explains what UIM/UMPD does very well: http://newsok.com/article/feed/945070

A collision between two vehicles falls under Collision coverage, while other incidents - theft, hail, flooding, fire, etc. - are covered under Comprehensive. I'd advise having a lower Comprehensible deductible compared to your Collision deductible. I had mine at $500 Collision/$50 Comprehensive, since I didn't want to pay $500 for something that was completely out of my control.

[jmmoore3]

Originally Posted by paliknight

Even if uninsured motorist was at fault and totaled my car, I have collision coverage. Wouldn't that cover my case beyond 25k?

Yes but then you have to pay deductible which may never get recovered and if you are hurt in that accident or have hurt passengers and don't have medical payments coverages you would be stuck if you didn't have the un/underinsured coverage for all injury costs. The un/under is very cheap as far as coverage goes and protects you with no financial loss on your end.