10 Oct If it seems too good to be true…
Beware the Fly by Night Insurance Agent
A family has three teenage sons driving high-end cars. The father, interested in finding some savings, approaches his insurance agent who has served the family for many years.
“Is there anything you can do to knock a few dollars off this very expensive premium,” he asks.
His agent, whom he’s known for more than two decades, explains that the rate is expensive because the coverage is sufficient to protect the father’s assets.
Focused only on his bottom line, the father starts looking for another agency who can deliver the lower premium he’s interested in. He finds “Fly by Night Insurance Solutions” who devises a plan for dear old dad:
He writes mom, dad, oldest son onto one policy with four vehicles.
He then writes the other two sons and one vehicle on tho a separate policy with another company.
Problem solved. Multiple policies. Lower premium. Happy customer.
Except… one day, the second son is sitting in his Porsche at a stop light horsing around with his friend in the passenger seat. His foot slips off the break and rolls squarely into the car ahead of him.
Just released from the hospital following neurosurgery, the passenger in that car has her head whip back and forth from the impact and is instantly paralyzed.
The Porsche is on the first policy. The second son is on the second policy. The first insurance company denies the claim because second son isn’t listed as a driver on the Porsche.
On top of that, the second insurance company wants to pay a prorated portion of the claim because there are two policies involved.
Dad’s Umbrella policy kicks in only after the first $250,000 is paid out.
The Moral of the Story
Buying insurance isn’t just about getting your license plate or keeping your mortgage company happy. Insurance is there to protect you!
To protect your family. To protect your assets.
Some agents and agencies make you feel like you need to consult an attorney or public adjuster before you call them. You shouldn’t ever have to do that. Insurance shouldn’t be scary.