Register a SA Forums Account here!
JOINING THE SA FORUMS WILL REMOVE THIS BIG AD, THE ANNOYING UNDERLINED ADS, AND STUPID INTERSTITIAL ADS!!!

You can: log in, read the tech support FAQ, or request your lost password. This dumb message (and those ads) will appear on every screen until you register! Get rid of this crap by registering your own SA Forums Account and joining roughly 150,000 Goons, for the one-time price of $9.95! We charge money because it costs us money per month for bills, and since we don't believe in showing ads to our users, we try to make the money back through forum registrations.
 
  • Post
  • Reply
Jastiger
Oct 11, 2008

by FactsAreUseless
Hello, goons! Insurance is pretty un-fun for most people, but at least we can learn more about it here without any kind of pressure or hopefully less bias. I DO sell insurance for a large insurance company that is based in the Midwest. I am authorized and licensed to sell in almost all states East of the Mississippi River and focus on property and auto policies. I used to be an exclusive agent dealing with Life insurance and annuities. Then I moved on to become an independent agent with multiple companies up in the Pacific Northwest. And now, as mentioned before, I'm back in the Midwest offering policies on the East Coast. Please use this thread as a resource for insurance questions! In the interest of full disclosure, I DO work for a particular company and am a bit bias towards them, but have worked with several different companies in my career, so don't let that stop you from asking questions.


UPDATED 06/17/2015



AUTO: Pretty much everyone knows auto insurance. It is there in the event that you get into or cause an accident. Most auto policies are split limit coverage as that is how states require proof of financial liability. For example, liability split limits in Idaho are 25/50/15. This covers YOU in the event that YOU are found liable for someone elses injury! This means $25,000 maximum per person per accident, $50,000 for the total accident, and $15,000 property damage per accident. This the state minimum, and wouldn't necessarily cover every incident you may have. There are also other aspects to auto insurance like medical payments, uninsured/under insured motorist, rental car reimbursement, comprehensive and collision coverage, towing, and in some states something called Personal Injury Protection (PIP), and much more. Combined Single Limits will give you one limit for the entirety of an incident. For the above example of 25/50/15 it would look something like 50 CSL or 100CSL.

:siren:
MEDICAL PAYMENTS

Medical payments are paid out to the people in YOUR vehicle regardless of who is at fault. If you are driving the vehicle and wrap it around a tree, your medical is going to kick and pay for your immediate medical needs as you head off to the hospital. Same goes for any kind of injury involving a vehicle, even if you're HIT by one and not in one. This can typically be anywhere as low as $1000 a person up to tens of thousands per person. Its often an inexpensive part of a policy and can be a life saver for those high deductible health insurance plans as the auto will be primary. When it comes to motorcycles it can become the most expensive though, as when you're on a bike and going to the hospital, its often pretty serious.

:siren:
PERSONAL INJURY PROTECTION (Pip)
This functions the same way as medical as far as what it covers. The difference is in some states they have it listed as PIP which covers things like lost wages or even disability pay. This is a little bit different type of coverage since its a bit more extensive. Some states like New York or Kentucky require that you have this and that the amount that can be claimed on it is UNLIMITED. This causes the premiums to increase in those states, but it does mean everyone has to have a bit more coverage if they are injured in an auto accident.


Uninsured/Underinsured Motorist (UIM/UM)
This is going to cover YOU in the event someone ELSE hits YOU and they don't have enough/any insurance. A common misconception is that the insurance is going to cover the other person on this one if they don't have insurance. This is incorrect. It protects you against other people doing the wrong thing by not having enough/any insurance. Again, its often inexpensive except in a few places, particularly in the Southern United States. For some reason people tend not to carry insurance in the South so it pushes up the cost of this coverage a little bit more than some Northern states. A very important coverage to have. In some states like Georgia you can waive your UIM/UM coverage stacking on top of the other persons insurance as a cost saving measure. Don't do this, its not a lot of money to save here, and if someone injures you, you're going to want to be covered instead of having to sue them yourself. Let the insurance company do that.

Comprehensive
Comprehensive is going to cover the vehicle in the event that its damaged in a non-moving accident. The only exception is if you hit an animal or some other specific incidents. It'll also protect the vehicle from hail damage, vandalism, theft, and is often required to get other coverages like towing or rental car coverage.

Collision
Collision will repair your vehicle in the event that you're involved in a collision that is your fault. A note about fault Any damage that is not the direct result of another vehicle striking yours is YOUR FAULT according to most state laws (Some states have no fault laws that are different, so I'll not talk about those here). Slip on the ice? Your fault? Get spooked and floor it into the car in front of you at a light? Your fault. Someone cut you off and you bumped another vehicle? Your fault. Even though the law is often times bull when it comes to this, all those things that are "accidents" are still your fault. This is where collision is going to come in and fix YOUR car.

Having both Comprehensive and Collision is often referred to as "Full Coverage" and is generally required whenever there is a leinholder on the vehicle. These will come with deductibles that will mitigate the cost to the company by eliminating small claims. You're going to want to weigh the cost of your vehicle to be repaired against the cost to insure it. If your vehicle is very old, but near and dear to you, you may be better off taking the money you would have spent on premium and put it into a "new car fund". It isn't uncommon for older vehicles to be totaled out and you're left holding a check that wouldn't by a comparable vehicle due to depreciation.

Update: 6/17/15:
Full Coverage As noted above, "Full Coverage" is when your vehicle has the state required liability AND coverage on the vehicle itself with Comprehensive and Collision amounts. Most of the time you'll hear this from the dealership in order to protect their investment in the vehicle. If the vehicle is damaged THEY want you to be able to make a claim so THEY can get paid back on the loan you just took out since they have an interest in the vehicle. Most lenders require a deductible no higher than $500, and all reputable ones require "full coverage" on vehicles they are lending money for.

Here is the important part: You can have "full coverage" with low limits, you can have "full coverage" with high limits. All full coverage means is that you have comp, collision along with your (state required!) liability limits. Do not assume just because you have "full coverage" that your coverage is actually good or even what you need. A deductible of 2000 with liability limits at the state minimum isn't really going to help you out if you suffer a loss. You're going to be out $2000 and likely on the hook for any damages if you are rolling around with that kind of coverage. That still meets the definition of "Full coverage" so you can check that box, but it isn't actually helping you out.

And to make Jastiger and insurance agents everywhere happy, do not call an insurance retailer demanding "Full Coverage" and nothing else. Its like calling Best Buy and saying "I want a flat screen" or "I want an HD TV". It can mean so many different things as to be meaningless and shows that you don't know or didn't care to know what it is you're looking to buy.

Be sure to pay attention to your policy. Some companies offer things like "Full Glass" which provides a $0 deductible for glass damage. Others may offer extra perks like deductible savings, accident forgiveness, or special deals at places like hotels or destinations.
Bare minimum limits are rarely sufficient for anyone that has any kind of job. In the above example, $25K would be exhausted quite quickly in the event of a medical need, and if there is additional litigation, you could quickly find yourself on the hook for probably $25k in legal fees alone. Same goes for that property coverage. $15k is enough to cover a small economy car in the event of a single car incident. If you total anything more than a Ford Focus, prepare to fork out even more even though you have state minimums.

There is also something called a Broad Form for auto coverage which follows the driver and covers nothing on the auto. These are generally used for drivers that drive multiple vehicles, don't drive often, or can't afford full coverage. This is only available in a few states.

Home: Home is more straightforward. An insurance policy for the home will cover the home, the contents, other buildings on the property, provide liability protection, medical expense coverage, and other stuff like ID theft or equipment breakdown. It is important to note that a home policy does not cover the land itself beyond a smaller sub limit. Often home insurance is required and paid through the mortgage company, but its always a good idea to have it anyways for obvious reasons. Theft, fire, storms, collapse, explosion, and more are covered. Flood, earthquake, and war events typically are not in a standard policy.

Flood: Flood is specifically NOT COVERED on homeowners policies. Flood is any water damage resulting from water coming in from the outside due to: rivers overflowing, dams breaking, the ground becoming saturated resulting in earth movement (ONLY DUE TO WATER SATURATION, NOT MUDSLIDES), and tidal waters coming inland. This type of insurance is regulated by the federal government and will be the same price no matter where you go since the policies are essentially underwritten by FEMA and may be sold through independent companies.

Renters: Renters are technically home policies that cover everything from the walls in. This means the structure itself is not covered under a renters policy; that is up to the landlord to get their own policy as described below. This DOES mean that it covers all your stuff as well as provide medical expense, liability coverage, and some other extras like the home policy above. Renters is cheap and if you rent, do not have renters insurance, and are a goon, I will become angry. We're talking around $15 a month to cover every single thing you own as well as provide coverage if someone tries to sue you for defending your stuff or falling down in the place (its more frequent than you think),or you have to leave because the place becomes unlivable. The liability is doubly important if you are somehow found at fault for causing damage to the structure. If a fire is found to have originated from your unit and it damages other units, then you'll be found liable. You will want this coverage, And for only ~$15/month (for most renters) its totally worth it.

Landlord: If you own property and rent it out, get yourself a land lord policy (called Dwelling/Fire policies). If those tenants burn the place down, you're covered. If they have a weird blood ritual in the hallways, you're covered. If they skip town and don't pay rent, you can get that covered. It covers the structure, but typically not the contents-that is up to the renter. However, things that are permanently attached like stoves, furnaces, tubs, are often covered as part of the structure.

Boat: Pretty much just like auto, and it works the same way. Some states have a few more requirements than others, but its mostly a self preserving type of insurance for boat owners. Fishing gear. Check. Engines. Check. You don't see that water skier and run them over while doing 45MPH. Covered. Typically includes the trailer that is used to haul the boat too. Many policies also offer extras like lower deductibles and "water-side" assistance in the event you need some help out in the waters. Another often over looked issue with water craft is the pollution coverage in these policies. If a boat becomes immobilized, often there can be an issue with gas leakage or oil spills. This insurance will often pick that up as well.

Umbrella: Umbrella policies are designed to cover liability for the policy holder over and above all other liability limits on anything else they may own. Umbrella's generally require minimum limits on the home and auto liability policies so as not to immediately be required. These are generally for people that have a lot to lose by being sued, like a homeowner with a lot of stuff, or involved in things that could increase their liability to be sued like coaches, public speakers, media peoples, etc. They are dollar for dollar typically the cheapest insurance and can be a literal life saver if you get into deep trouble.

Motorcycle: Bike insurance is a lot like Auto, but can be most costly dollar for dollar. Medical coverage is going to be your key bit here since if you're in an accident on a bike you are often going to need it. Medical is the most expensive, but often the most important part of a bike policy. Limits are described in the same format as auto. Many of the same perks can be offered on motorcycle policies too like the roadside assistance and special coverage for gear.

Pets: Yes there is pet insurance. It's like health/life for a pet instead of for a person. Its often affordable.

Life, Health, Long Term Care, Disability: I'm happy to answer any questions that may be out there since these are probably the most complex and least understood types of insurance.

Due to questions about different types of life insurance I've updated this section here!

WHOLE: Whole life insurance is for the WHOLE life of the person being insured. These policies will have a few different values inside of each policy. First will be your Face Amount. This is how much insurance you're purchasing. Whole life also has a Cash Value. This is the amount of Cash in the policy that you can liquidate at (almost) any time. This value trends upward with the life of the policy as you pay in your premium. Once you hit a certain point, usually 10-15 years out, your cash value will equal your paid in premium amount and then eventually your Face Amount. What happens then is typically your face amount will begin to increase as you pay in your premium, though it isn't a 1:1 ratio. Rather its a predetermined ratio that is available prior to binding the policy coverage as you are essentially "buying" more insurance with your cash amount. However, you can do other things with the Cash Value. You can make withdrawals and keep it. You can let it ride and stop paying your premium and let your cash value pay the premiums for you and stop paying your premium out of pocket. Some companies will allow you to convert the life insurance into something else if you so choose as well. This is generally the most expensive type of insurance since it lasts forever, has a cash amount, and often has more bells and whistles built into the policy. It also can pay dividends from some companies. The money in this is technically invested, but not in the same way as Universal or Variable life insurance policies are. Often the cash value is reflective of the companies interior investments and reflects the amount they're paying on their life insurance, but this is all of course, behind the scenes.

Term: Term life is a set face amount for a set term, usually 15, 20, or 30 years. You purchase a policy at say $X and you pay the premium. So long as you pay your premium, the policy stays in force. At the end of the term all obligations of either party ceases, and they both go their separate ways as far as the contract is concerned. Many companies will allow you to purchase additional insurance at the end for a discounted rate or roll into another program as an accommodation, but these are often extra and have additional requirements. Term policies carry no cash value, no dividend, and often with the fewest bells and whistles. That makes term life the cheapest possible insurance to purchase, if you die during the term, they pay out. If you don't, they don't.

Variable: Variable life policies (sometimes referred to as Variable Universal) involve an investment component. These are often the most volatile and risky types of policies, and are the closest to an actual investment you're going to see with life insurance. This policy function similarly to a whole life policy in that there is a cash value associated with the policy, but instead of the cash value being automatically added with the guarantee from the insurance company, you generally drop the money in yourself up front or periodically. With variable tere is a Target Premium which is what you're going to want to pay. The trick is, that target is generally dependent upon an investment having a certain amount of return to compensate for the premium you expect to pay out of pocket. If the investment performs well, then you have extra cash! You can use it to pay the premium, add on more insurance, or to sit in and be reinvested, with the strategy depending on your age, investment goals, and long term financial plans. If the investments perform poorly......well, you still have that premium to pay. If the cash is all lost in the investment, you may no longer have that cash value cushion to use to pay your premium, causing your out of pocket premium payments to jump up, sometimes significantly! This type of insurance is obviously the most risky, but can have huge returns. Generally the premium is lower than Whole life, but higher than Term when you look at the expected payment, but this can change based on market performance or the options taken with that cash amount in the policy. Like whole life, these types of policies are generally for the life of the insured, though since they are investment vehicles for many, they don't necessarily stay in force the whole time.
That is a quick run down of the different types of insurance. If you have any more questions either about your own policies, or just more general information about insurance, please ask here and I'll answer your questions.

Co-Insurance!

I thought I had this covered but I guess I did not- this is super important.

Co-insurance clauses are requirements that an insured has a certain amount of insurance-to-value on their property called co-insurance. Usually the clause is set at 80%. What this means is that insurance companies require that you have your property insured at least 80% of its value, or else there may be a penalty if you make a claim (most companies require 90% or higher!). The reason for this is that folks will often attempt to largely under-insure their property in order to pay a lower premium on a lower amount, leaving the insurance company providing a small amount of insurance for a large structure. This can lead to all sorts of legal issues when making claims.

So, what happens if you are under that 80% guideline? You get hit with a penalty! The penalty is proportional to how much under your property value you have an insurance coverage set to. For example, lets say your house is worth $100,000, but you only want to pay for a policy at $50,000. You want to save money and cut corners up front. Well, your house burns down and you want to make a claim for your $50,000. Well, you had only insured your home to 50% of its value so you'll be assessed a penalty. The insurance company will look at how much less you had insured your home to (50%) and look at the amount you had purchased ($50K) and will pay out that proportion on the amount you had insured -in this case 50% of your 50% coverage.

The company would pay out $25,000, half of what you had purchased because you only had insurance-to-value at half.

This is a huge deal and a reason why a lot of quality established insurance companies would never ever insure someone below the 80% mark. It is an easy set up for failure in the event of a claim and is just not good business for the company or to the person that wants the policy.

Its a common tactic for home owners to seek out low premiums for their home by undervaluing their house. Many insurance companies will conduct a reconstruction estimate assessment in order to find out where that value really ought to be. This applies to condos, townhomes, and really, any kind of real property.

General Insurance Guidelines:

Buy as much insurance as you can afford. This doesn't mean buy as much as is offered, but as much as you can comfortably and reasonably pay for. Chances are if you can easily afford an extra thousand in coverage, then in the event you need that kind of insurance, you're going to wish you had it.

Be sure to read your policy carefully. If you're relatively young (under 30 or so) and are getting SCREAMING deals on insurance, you're going to want to read your policy carefully. Often times younger folks go for the cheapest insurance and end up with a barebones policy that doesn't cover a lot of what they may think. Even some posters here have found that they thought they had insurance coverage for things and ended up not having it because they went for the cheapest rate rather than the best coverage. Make sure your policy has what you want in it before settling down on it!

You often get what you pay for. While I don't work for Allstate, the Mayhem guy is right: If you have cut-rate insurance a lot of stuff may not be covered. Remember when you're shopping for insurance that the company you're looking at is going to offer things a bit differently than the next. This doesn't mean you need to go for the most expensive, but keep in mind what you're purchasing when you're shopping around.

Ask questions! Ask your agent, ask in this thread, ask the person quoting you on the phone..just ASK. Find out what insurance means if something isn't clear. Ask why you would want/not want a specific coverage. Ask why you're insurance is so cheap/expensive. The insurance industry is pretty regulated and representatives will often be able to tell you how or why something came to be.

Be Honest. Tell the company if you've had an accident or a loss on your home. Hiding it means you're opening yourself up to being canceled, having your premiums increase, or worse, finding out the thing you didn't disclose led to a loss which can possibly mean that loss isn't covered. Don't go all Chunk from the Goonies on the companies, but if a question is asked, do your best to tell them whats up. Agents want to write you policies and will do what they can to make sure you're covered one way or another-they aren't raising your premium to screw you over if something comes up. They want your business!

ON QUOTING

This is something that has always bothered me since day one. When you're quoting its important to know that every reputable insurance company is going to run reports on you including Motor Vehicle History, Property Loss History, and an insurance based credit report. This means using your SSN to get an accurate quote. What is important to know here is that if you go online and type in your stuff into a quoter, or go to an agent and they quote you and you have not given your SSN, DL #, or VIN of your vehicle, the quote is not accurate. Policies can go from $50 a month for auto to $150 a month once the reports are run, or even vice versa. As an agent, this is a peeve of mine: Do not go to a company and get a non-accurate quote, and use that as justification for lower premiums at other companies that HAVE run the reports. Eventually that company will run their reports and your premium will adjust accordingly. Good companies run the reports first, not-so-good companies will wait until the very end to get you to commit to them before seeing the actual premium. Keep this in mind when shopping for insurance!

Updated 06/17/15

Jastiger fucked around with this message at 16:42 on Jun 17, 2015

Adbot
ADBOT LOVES YOU

The Slaughter
Jan 28, 2002

cat scratch fever
when you use a broker do you get the same rates as going direct, or higher in order to cover the broker's commission? do you always tell customers about the lowest rate you find or would you be tempted to go with another carrier that is slightly higher ratewise but pays a better commission?

Also, how do porn actors get insurance on their genitals? Is that considered "long term disability"?

Eggplant Wizard
Jul 8, 2005


i loev catte
How about you take out all the personal shilling stuff and just link to your SA mart thread, instead, and keep your OP about general insurance issues? Otherwise, this thread is getting gassed as self-promotion. I don't know if that was your intent, but it is coming across as such. Please make your edits.

Jastiger
Oct 11, 2008

by FactsAreUseless

The Slaughter posted:

when you use a broker do you get the same rates as going direct, or higher in order to cover the broker's commission? do you always tell customers about the lowest rate you find or would you be tempted to go with another carrier that is slightly higher ratewise but pays a better commission?

Also, how do porn actors get insurance on their genitals? Is that considered "long term disability"?

It depends. Some companies will only sell through brokers or agents. Others, like State Farm or Farmers, only sell their product through their own agents. Then you have others like E-surance that are direct only. I'd say about 75% of the time it's the same going with an agent as it is direct. 20% of the time its a smidge higher, like maybe $30/year, but the service you get from an agent is worth it. 5% of the time it's just cheaper to direct. If you have a lot to insure it can be worth it to have an agent to sort through a lot of different coverages. If you're looking to be minimally legal, then you can go either way. 9 times out of ten if someone comes to me with say, a new car, or just got a house/apartment, I save them money than when they were direct.

I generally go with the lowest premium unless its with a non-standard company. It's worth it to go with a preferred company and pay a smidge more since it makes your insurance cheaper in the long run, especially if you have a claim.

Actually, while I haven't insured any porn stars, from what I know of professional insurance I'm sure there is a policy that covers that. Just like a plumber will have a policy for his operations, I'm sure there is a niche market for them.

MageMage
Feb 11, 2007

I SUCK AND LOVE TO YELL PERFORMATIVE HOT TAKES AND NONSENSE LIES WHEN I GET WORKED UP. SOMETIMES AUTOBANNED IS BETTER. MAYBE ONE DAY WHEN I STORM OFF I'LL ACTUALLY STOP SHITTING UP THE SITE FOR REAL
What insurance covers sexual reassignment surgery that would cover Dr. Reed in https://www.srsmiami.com I would like to get it before he gets too old for it and dies....

Eggplant Wizard
Jul 8, 2005


i loev catte

Jastiger posted:

Edited to remove SA-MART sales language and apologies to Senor Wizard.

Thanks.

And I'm a senorita :ese:

Jastiger
Oct 11, 2008

by FactsAreUseless

Eggplant Wizard posted:

Thanks.

And I'm a senorita :ese:

It always said senorita, I don't know what you're talking about.


MageMage posted:

What insurance covers sexual reassignment surgery that would cover Dr. Reed in https://www.srsmiami.com I would like to get it before he gets too old for it and dies....

To be honest I'm not sure if you can get an insurance policy from a general health care provider that would do that. If you told them you planned on having the surgery they'd probably deny coverage for it for a set amount of time, or just jack up your premiums. For something super specialized like that, I'd contact the office and ask him what insurance companies he accepts, then apply to them independently. I'll ask some of my carriers here about it though if I get a chance.

Skizzles
Feb 21, 2009

Live, Laugh, Love,
Poop in a box.
I have a car insurance question. Actually it may be more of a legal question, I'm not positive... A week ago someone backed into me and caused some rough cosmetic fender/bumper/headlight damage (I was leaning on my horn but he kept on goin'). He was adamant about not involving insurance, offering to give me however much cash I thought it would cost right then and there. I don't have any damned auto body knowledge, and I was worried what he'd do if I demanded his insurance (the fact he had hundreds or thousands of dollars in cash on hand really sketched me out), so I just threw out "$600" based on a recent estimate to fix my rear bumper, so he gave me $600 and that was that. I went and got an estimate on the damage he caused the next day: about $2,000...

Yes, I am a complete idiot for not demanding his insurance or asking for WAY more money, but I'm a petite girl (who is not that assertive) in a shady parking lot with a dude who keeps massive amounts of cash on hand. I got his name and actual phone number. I don't know if the name he gave me is real - I had no luck Googling it. I tried calling him several times, left messages and texts. Not surprisingly, I've gotten no answer.

I did get his plate number, though. From what I understand, I can pay to have his information looked up using that. However, I'm not sure if it's worth pursuing because it would be his word against mine... (there was a witness but he walked off). As far as I know there was no damage to his bumper, and even if there was, he could just say that I rear-ended him and I'd have no proof otherwise.

Is there anything my insurance can do, or if I track down his insurance info is there anything they can do...? I get the feeling I'm pretty much poo poo out of luck, but it can't hurt to ask. I feel like a total idiot. :smith:

Jastiger
Oct 11, 2008

by FactsAreUseless
Ugh bad deal here.

Well the insurance companies are going to want to know about an incident report and why you didn't call them up front. They know that if its a small thing, and they don't know about it fine. Once you tell them, they put it on the books. The thing is, since there is no way to find out who is at fault, and there is no police report, it will be your word against his. It will look bad on you and maybe jack up your rates since you didn't contact police like you're supposed to.

At this point I wouldn't tell your insurance company about it since all it would do is put an unreported incident on your record. What I WOULD do is file a police report or at least give them a call and see what they can do. If they are willing to look up the guy based on his info, you could very well have them find him and his car and then make a claim then. You might not get out of it scott free and your rates might go up, but so will his since he was involved and failed to report too.

Otherwise you just got a messed up car:(

Defenestrategy
Oct 24, 2010

Why is renters insurance extremely cheap? Is it just hedging that since you live in an apartment all your stuff may just be easily replaced/cheap and that chances are nothings gonna happen to it?

Jastiger
Oct 11, 2008

by FactsAreUseless
It's cheap because the likelihood of something happening is typically low and in the large scheme of things, if a place burns down, the place is more expensive to rebuild than the stuff in one unit. The thing is, the cost to the insured is high, so it's a good thing to have. If you look at a home insurance policy and the limit for "stuff" it's typically much much lower cost than insuring the building. Renters is basically a home policy with the structure part, the most expensive part, removed.

Jastiger
Oct 11, 2008

by FactsAreUseless

Skizzles posted:

I have a car insurance question. Actually it may be more of a legal question, I'm not positive... A week ago someone backed into me and caused some rough cosmetic fender/bumper/headlight damage (I was leaning on my horn but he kept on goin'). He was adamant about not involving insurance, offering to give me however much cash I thought it would cost right then and there. I don't have any damned auto body knowledge, and I was worried what he'd do if I demanded his insurance (the fact he had hundreds or thousands of dollars in cash on hand really sketched me out), so I just threw out "$600" based on a recent estimate to fix my rear bumper, so he gave me $600 and that was that. I went and got an estimate on the damage he caused the next day: about $2,000...

Yes, I am a complete idiot for not demanding his insurance or asking for WAY more money, but I'm a petite girl (who is not that assertive) in a shady parking lot with a dude who keeps massive amounts of cash on hand. I got his name and actual phone number. I don't know if the name he gave me is real - I had no luck Googling it. I tried calling him several times, left messages and texts. Not surprisingly, I've gotten no answer.

I did get his plate number, though. From what I understand, I can pay to have his information looked up using that. However, I'm not sure if it's worth pursuing because it would be his word against mine... (there was a witness but he walked off). As far as I know there was no damage to his bumper, and even if there was, he could just say that I rear-ended him and I'd have no proof otherwise.

Is there anything my insurance can do, or if I track down his insurance info is there anything they can do...? I get the feeling I'm pretty much poo poo out of luck, but it can't hurt to ask. I feel like a total idiot. :smith:

Also I should ask, do you have uninsured/underinsured coverage on your auto policy?

Idiot Kicker
Jun 13, 2007
I have a question. I was contacted by a company called Primerica about being an agent. Is it a scam? I kind of feel like it is, but being newly laid off, I don't want to close out the option unless I'm sure.

Jastiger
Oct 11, 2008

by FactsAreUseless
I've actually talked about Primerica in the Scammed and MLM threads in GBS.

Their structure is based closely off of the MLM system where you are under one agent, and eventually recruit your own agent, and so on and so forth. In and of itself that isn't bad until you see the way their sales pitches go. Just like any other sales job its commission based and if you don't sell, you don't get paid. However, its doubly so when you are reliant upon a new guy to sell that has little to no training. This leads to the hard sell and hours spent at dining room tables with people glancing at the clock. Not a good way to sell insurance or financial products.

If you want some experience doing individual sales, it's not a bad idea to try out the industry. Their training is lack luster, their products are not competitive quality wise or cost wise, and the entire organization, at least to me, smells fishy. I'd look at an Edward Jones or State Farm if you want to get into the insurance and investing business. Also don't forget the cost of getting your licenses.


To give you an example of Primerica, I used to work for a company that serviced Primerica products. The agents knew nothing about the products they were selling people and were handling hundreds of thousands of dollars. This means when the agent inevitably got out of the business a customer was left with a huge chunk of money in a product they had no idea what it was doing. It's a pretty crappy situation all around, especially when that is your retirement money.

Idiot Kicker
Jun 13, 2007
Thank you. I will go find those threads.

Skizzles
Feb 21, 2009

Live, Laugh, Love,
Poop in a box.

Jastiger posted:

Also I should ask, do you have uninsured/underinsured coverage on your auto policy?

No, just liability. :(

Jastiger
Oct 11, 2008

by FactsAreUseless
Curses. Well I'd recommend adding that on there. UM/UIM Coverage is relatively cheap if you already have liability. If you're under 25 then comp/collision can be a bit rough, but UM/UIM can protect you in these situations. Always, always, especially if you know its not your fault, file a police report.

Skizzles
Feb 21, 2009

Live, Laugh, Love,
Poop in a box.
I am under 25 and my mom kinda handles the insurance right now, and liability's all she can afford, but I will keep that in mind for when I finally start handling my own stuff like an adult and get my own insurance. As for the police report, is there really any use in filing one now...? As much as I'd like to stick it to him, I'd like even more not to risk raising my own rates for my mother's sake.

This is going to sound completely retarded, but I am new to this sort of thing... How exactly should filing a police report be done? Just call the non-emergency line for the cops? Is there much use filing one for hit-and-runs or does the person who hit you have to be there? Either way, I will definitely suck up my fear of confrontation in the future and file a report.

MageMage
Feb 11, 2007

I SUCK AND LOVE TO YELL PERFORMATIVE HOT TAKES AND NONSENSE LIES WHEN I GET WORKED UP. SOMETIMES AUTOBANNED IS BETTER. MAYBE ONE DAY WHEN I STORM OFF I'LL ACTUALLY STOP SHITTING UP THE SITE FOR REAL

Jastiger posted:

I'll ask some of my carriers here about it though if I get a chance.

You would be my angel seriously thank you.

Jastiger
Oct 11, 2008

by FactsAreUseless

Skizzles posted:

I am under 25 and my mom kinda handles the insurance right now, and liability's all she can afford, but I will keep that in mind for when I finally start handling my own stuff like an adult and get my own insurance. As for the police report, is there really any use in filing one now...? As much as I'd like to stick it to him, I'd like even more not to risk raising my own rates for my mother's sake.

This is going to sound completely retarded, but I am new to this sort of thing... How exactly should filing a police report be done? Just call the non-emergency line for the cops? Is there much use filing one for hit-and-runs or does the person who hit you have to be there? Either way, I will definitely suck up my fear of confrontation in the future and file a report.

Pretty much yeah, you can call the non emergency police number and they can dispatch someone over to you to take statements. You can still call the police and try to get him tracked down since you have his info. It won't necessarily raise your rates unless you file a claim, but it will certainly raise his. One thing to consider: Since you don't have UM/UIM/Comp/Collision on your car, there is no coverage from your company to fix it. If he has insurance you can make a claim there. More than likely, if he doesn't, you're going to have to take him to small claims, which is not fun or worth it usually.

If you call the police, just tell them the truth. He hit you, here is his license #, you felt intimidated about getting the police involved. They may say its too late, or they may go and knock on his door. Depends on how busy they are.

Skizzles
Feb 21, 2009

Live, Laugh, Love,
Poop in a box.
Fantastic, thank you!

Jastiger
Oct 11, 2008

by FactsAreUseless
This thread is still here and I"m still helping goons so, I wanted to make sure all your questions were answered.

EchoBase
Dec 11, 2001
I'm looking into life insurance and wanted to get some advice. I'm in Canada in case it matters. We recently bought a condo and are also having a baby in the fall. My wife works now and will continue to work after her maternity leave.

When deciding on an amount of insurance, I understand the standard calculations of how much debt you want to be able to cover, how much income you want to replace, etc. I want my life insurance to cover the mortgage and funeral stuff and possibly a bit of money for my wife to put into savings for her retirement and a university fund. I wouldn't need to replace any monthly income as long as the mortgage is covered.

The part that I'm confused about is what sort of term I should choose. The ideal package would be one that gives declining coverage over time (the length of the mortgage) so as my needs reduce, my coverage and cost also reduces. I don't see anything like that, so I figure taking out shorter term insurance (like 5 year) and then adjusting the amount at each renewal stage would create that effect. Am I missing something here like my rates will go up as I age and I really won't see any benefit in cost even if the coverage amount is reducing? Should I just get a 25 year term to match the mortgage?

Through work I have access to life insurance benefits. They seem reasonably priced, but I'm not sure of the risk here. I assume it's that if I lose my job a number of years from now I could find that I missed out on locking in a good rate while I was younger/healthier. Is that the only consideration?

When I applied for my mortgage, the bank offered mortgage insurance. The rate seemed crazy, like 2-3 times the estimates I'm finding for regular life insurance. Is mortgage insurance a bit of a scam or is it a good product?

Thanks for any help!

Czech
Apr 21, 2009
I also sell life insurance. If you want to cover your mortgage as well as provide a little extra for your wife then you should look at a combination of things. First find a broker or an agent that will shop for the best priced term insurance. Cover the mortgage with 25 yr level term from the cheapest carrier you can find. Most companies will be happy to lower your death benefit at any time with the stroke of a pen but term insurance will probably be very cheap anyway.

The cheapest way to cover the other bit of insurance is with guaranteed universal life (GUL). GUL is a permanent policy as long as you don't miss a payment.

A more expensive way is with participating whole life insurance. WL costs a substantial amount more than GUL but builds a usable cash value. This would give you the option, in retirement, to take back all your money (plus a 4-5% apy) and surrender the policy when you no longer need it. Also in this way a portion of your retirement portfolio is completely uncorrelated to your market assets and can never actually lose value.

"Mortgage insurance" sounds like a ripoff.

EchoBase posted:

I'm looking into life insurance and wanted to get some advice. I'm in Canada in case it matters. We recently bought a condo and are also having a baby in the fall. My wife works now and will continue to work after her maternity leave.

When deciding on an amount of insurance, I understand the standard calculations of how much debt you want to be able to cover, how much income you want to replace, etc. I want my life insurance to cover the mortgage and funeral stuff and possibly a bit of money for my wife to put into savings for her retirement and a university fund. I wouldn't need to replace any monthly income as long as the mortgage is covered.

The part that I'm confused about is what sort of term I should choose. The ideal package would be one that gives declining coverage over time (the length of the mortgage) so as my needs reduce, my coverage and cost also reduces. I don't see anything like that, so I figure taking out shorter term insurance (like 5 year) and then adjusting the amount at each renewal stage would create that effect. Am I missing something here like my rates will go up as I age and I really won't see any benefit in cost even if the coverage amount is reducing? Should I just get a 25 year term to match the mortgage?

Through work I have access to life insurance benefits. They seem reasonably priced, but I'm not sure of the risk here. I assume it's that if I lose my job a number of years from now I could find that I missed out on locking in a good rate while I was younger/healthier. Is that the only consideration?

When I applied for my mortgage, the bank offered mortgage insurance. The rate seemed crazy, like 2-3 times the estimates I'm finding for regular life insurance. Is mortgage insurance a bit of a scam or is it a good product?

Thanks for any help!

Jastiger
Oct 11, 2008

by FactsAreUseless

EchoBase posted:

I'm looking into life insurance and wanted to get some advice. I'm in Canada in case it matters. We recently bought a condo and are also having a baby in the fall. My wife works now and will continue to work after her maternity leave.

When deciding on an amount of insurance, I understand the standard calculations of how much debt you want to be able to cover, how much income you want to replace, etc. I want my life insurance to cover the mortgage and funeral stuff and possibly a bit of money for my wife to put into savings for her retirement and a university fund. I wouldn't need to replace any monthly income as long as the mortgage is covered.

The part that I'm confused about is what sort of term I should choose. The ideal package would be one that gives declining coverage over time (the length of the mortgage) so as my needs reduce, my coverage and cost also reduces. I don't see anything like that, so I figure taking out shorter term insurance (like 5 year) and then adjusting the amount at each renewal stage would create that effect. Am I missing something here like my rates will go up as I age and I really won't see any benefit in cost even if the coverage amount is reducing? Should I just get a 25 year term to match the mortgage?

Through work I have access to life insurance benefits. They seem reasonably priced, but I'm not sure of the risk here. I assume it's that if I lose my job a number of years from now I could find that I missed out on locking in a good rate while I was younger/healthier. Is that the only consideration?

When I applied for my mortgage, the bank offered mortgage insurance. The rate seemed crazy, like 2-3 times the estimates I'm finding for regular life insurance. Is mortgage insurance a bit of a scam or is it a good product?

Thanks for any help!

Czech had some good advice below as it's similar to what I'd recommend. I would not recommend getting small stop-gap insurance plans every 5 to 10 years because indeed your rates DO increase every time you go back to look at it. If you're 25 now say, you'll pay for a 5 year and pay a 25 year old rate. Repeat for 30, 35, 40 and by the time you're 35 you could very well be paying more for a 5 year plan than if you had bought a 20-30 year plan at 25 year old rates. Age, smoking, health, are the biggest factors here. Also remember there is "banding" with insurance amounts. It can be cheaper to get $300,000 than getting the $267,000 your debts may be. Be sure to check on that with your agent or broker.


The GUL option would also be a potential option for you to if you want to have insurance when you die. If you're just looking to cover the mortgage, find the cheapest 25-30 year plan you can get and buy that and be done with it. If you are looking to have life insurance to pass on to your wife and/or children regardless of timeline, you can pick up a GUL. They are more expensive than term but in the long run end up being much cheaper, especially if you want to decrease your insurance down the line.

I'm a big fan of whole life because it lasts your WHOLE LIFE. It guarantees your family will get something when you die and it grows if you get a participating whole life policy ( don't ever get a non-participating whole life policy). I advocate getting a term to cover your debts like mortgages or loans, then get a smaller whole life that grows throughout time. When you're 70 or so the term will be up, your mortgage is hopefully paid off and now you can coast with a whole life policy that has a bunch of cash in it to do whatever you want with, usually paying the premiums to pass on to the kids.

Employer backed life is usually mega cheap, which is good, but you have to remember: it goes away when you leave your place of employment. If you have serious concerns about potential job changes in the future you can save time and money by getting a private term policy of your own that stays with you no matter what. One of the worst things I see is a person that is in their 50's not in great shape that just lost their job/changed careers and now needs to apply for insurance because their "Job always provided it", and now they are forced to apply at 50 year old rates.

You can nip that in the bud by getting it early, getting in touch with an agent who will shop it around for you as Czech says, and paying a smidge more up front. Life insurance is one of the few things where paying a bit more up front almost always means you pay less down the road.

ohwandernearer
Jul 15, 2009
Can you tell me roughly what would happen if I got into an accident driving my girlfriend's car and I was at fault?

We are in the state of MD and this is something we were debating--no accidents have occurred.

We are both insured on our own cars respectively.

Jastiger
Oct 11, 2008

by FactsAreUseless
Well, to be honest the best way to handle this is to have you both on ONE policy. You'll more than likely save money and it makes this question really easy to answer:)

However, I know things aren't always like that or one of you has a worse record than the other.

To tell you the truth, if you had an accident and you were not listed on her policy the insurance companies would really decide how they want to handle this. More than likely her policy will pay for the car, yours would cover your liability.

Then they would probably cancel one or both of you. This is VERY BAD. This makes getting insurance in the future very expensive and a huge headache. Do not let this happen.

The reason it's so sticky like this is because insurance companies consider any licensed driver in the household a driver. It's highly unusual for two drivers to be in a home together and not drive one anothers car. Room mates are an example of this and you can exclude people in your household because room mates will probably not be driving each others' cars. So in essence the insurance company would see that indeed she is having you drive her car without them properly rating for the extra driver. Basically they would consider it misrepresentation and can do what they want when the time comes.

Now, family members or occasional drivers are usually OK. Mom comes into town and drives the car, that is no problem. She has her own insurance and doesn't live there and these things happen. When it comes to people living in the same household you need to either get them Named on the policy or excluded as covered under their own insurance.

So, my professional recommendation? Get one policy and put both of you on there. Multi driver, multi car discounts as well as one policy should save you money. If one of you has a worse record than the other, then you can name them on your policy, but it will still have an impact. Or you can just never ever drive the other persons vehicle.

Sorry it's not all great news:(

Sperg Victorious
Mar 25, 2011
How much do claims made by rental car companies for damage on a rental car effect your rates?

Jastiger
Oct 11, 2008

by FactsAreUseless
Did you purchase the insurance from the rental car place?

If not and they just made a claim against you, it can show up in a report. It all depends on how the claim is handled and if you simply paid out of pocket or you got an insurance company involved. It isn't as bad as say a speeding ticket or running a red light, but it can show up if there was a scuff or some such on the car. If you're talking about a collision then yeah, that will show up since those are tied to you and not what you necessarily driving.

If you have an otherwise good record I wouldn't worry about it.

Sperg Victorious
Mar 25, 2011
Yeah, I'm mostly worried about if there is a scuff or debt on the car when it gets returned. Didn't know if that kind of thing has an appreciable affect on rates afterwards.

Jastiger
Oct 11, 2008

by FactsAreUseless
If it's a scuff or dent they'll probably just want you to pay for it out of pocket or they will have a special surcharge they'll tack on to the rental. If its bad enough that you have to contact insurance..well then there you go.

I say ALWAYS BUY THEIR INSURANCE, even the cheap stuff. I once scuffed up a car we rented REALLY BAD. I was freaking out, but in the end it was OK! I had paid the extra $30 and had insurance on it, so they ate the cost, not me.

Kung Fu Jesus
Jun 20, 2002

lol jews gonna get fucked.
Can you tell me a little about your job, especially getting started in the industry. I ask because I have my resume posted and have received a couple calls from insurance companies asking if I thought about becoming an agent(I have previous claims experience). So I've thought about it a little.

However, its never been a serious thing because of one major factor. The idea of cold calling individuals or businesses makes me so nervous I could either poo poo or puke, or both. Also, there is the fear of having my compensation completely dependent on my ability to generate clients. So I'd like to know how you started, where the intial clients come from, how you survive the beginning with no clients and maybe a typical day. Also, the pros and cons of being an independent vs working for one insurance company.

Jastiger
Oct 11, 2008

by FactsAreUseless
Well its definitely a rough business depending on where you are. I started out in a larger city in the Midwest and did fine. I moved to a rural area in the Pacific Northwest...it's much more difficult.

Getting started in the industry is the most difficult part. There is a saying for agents that if you make it for three years you're good. If not, then it's hell and you won't be able to continue. There is a lot of truth to that since the income structure is cyclical; you're paid on commissions when they renew so the more you build up a clientele the more you'll get paid. Of course starting out you have no renewals so you have no income other than what you can sell up front. Life insurance is a bit different in that it pays out mostly up front rather than equal amounts each year.

The job is also the epitome of "It isn't what you know, but who you know". If you stopped by a local agents office in your town I guarantee he knows as much as the next guy down the street, but their income and clientele is based off of who they know, not how much expertise they have. This is the biggest thing in the business. If you don't know a lot of people or are uncomfortable meeting new people you will not succeed in the business unless you have some other kind of "in" to get clients.

As far as the job itself it really isn't bad so long as you can pull in enough to live. Independent agents set their own hours, manage their own clientele, and generally work as brokers between multiple insurance companies. Working for a company is generally more restrictive and stable since you typically have to follow their protocols and offer only their products. There are benefits to both sides depending on your social situation and the size of your town. A lot of agents with say, State Farm or Farmers do quite well not because they know a lot of people, but because they have great brand recognition.

A typical day is coming in to the office cleaning up any emails or messages you may get from the companies. Things like premiums that need paid, documents signed, or any issues that come up. For me, since I'm new to the area I'm in I spend a lot of time prospecting; cold calling, sending emails, visiting businesses, and reaching out to people I know for business. The time not spent prospecting is spent running quotes and comparing insurance policies in the office. I often spend time after hours making phone calls since people are generally home then.


Before this post gets too long and rambling I'd recommend doing this if you know a lot of people and have no problem having a fluctuating income for the next 6-8 months. If you can swing that, then go for it, it can be very rewarding! If not or you live in a small town I'd recommend against it. I'm a good agent but I am having a hard time breaking through the small-town mentality and getting new clients at a pace that I'd like.

If you have any other questions feel free to ask.

Kung Fu Jesus
Jun 20, 2002

lol jews gonna get fucked.
Is there any startup capital, supplies or a list of clients you can inherit or anything to get the ball rolling? Or are you starting from zero, with just a license? If its the latter, did you just get a loan to open an office, buy supplies, and start cold calling?

sheri
Dec 30, 2002

ohwandernearer posted:

Can you tell me roughly what would happen if I got into an accident driving my girlfriend's car and I was at fault?

We are in the state of MD and this is something we were debating--no accidents have occurred.

We are both insured on our own cars respectively.

Insurance follows the car. So, if you were at fault, unless your girlfriend had not given you permission to use the vehicle (and she'd have to prove this), her insurance pays for the damage to the 3rd party. If she had collision coverage on her vehicle, then that would cover her repairs as well. You would be listed as the driver, but your own personal auto insurance would not come into play at all (unless for some reason the damages caused by you to the 3rd party are greater then the liability limits she has on her car. Then your insurance may get involved as well).

Always remember, liability coverage/insurance follows the car, so if you let some dumb friend of yours drive your vehicle and they get into an accident, it is your liability coverage that pays up.

(How do I know this? I used to work in auto insurance claims and we dealt with this all the time).

Jastiger
Oct 11, 2008

by FactsAreUseless

Kung Fu Jesus posted:

Is there any startup capital, supplies or a list of clients you can inherit or anything to get the ball rolling? Or are you starting from zero, with just a license? If its the latter, did you just get a loan to open an office, buy supplies, and start cold calling?

Not if you're independent. If you're asking about me personally, I work for an independent agent in his office as another agent. We have a contract that splits the commission in exchange for the use of the office resources and brand names. I got all my licensing when I worked for a large insurance company in Iowa, then moved here and joined up independent.

If you were to open your own office then yeah, you'd have your license and that is it. You'd need to secure office space and all that on your own. Most people who start this kind of business are already established in a community, have a lot of money to begin with to, or know few key group of clients that would be able to sustain the business growth and make it worth while up front.

If you're getting contacted by insurance companies they more than likely have start up plans for their agents. A limited stipend plan, usually 3 to 8 months to cover basic expenses is out there for SOME companies, but not all. They'll give you office space, business cards, ongoing training, and the like. They generally do not pay for your licensing unless you've been with them for a while and need to get another to expand business opportunities. In a few rare instances that I know are out there, but I've never seen, they will pay you a salary of some kind and any extra you sell is extra commission for you. This is more common in banks.

Analytic Engine
May 18, 2009

not the analytical engine
Is it hard to get renter's insurance when your possessions are valuable compared to the apartment? I want to be able to leave my laptop, desktop, and monitor in a cheap rear end apartment that might see mold or break-ins from sketchy neighbors.

Thanks for the info so far (of which I knew literally nothing). I always assumed that insurance was more expensive than it was worth outside of health and cars.

adorai
Nov 2, 2002

10/27/04 Never forget
Grimey Drawer
Can you tell me more about landlord insurance? I am considering keeping my condo as a rental when I purchase a house in the near future, and want to know how landlord insurance works. I realize I pay a premium and they cover me against lovely tenants, but how do the premiums for that work? The unit will rent out for ~$900/mo, with a direct cost to me of $650/mo. So I am positive $250 a month, can I pay $100/mo to the insurance company and they cover any repairs over $1000 per year or something? I realize the premiums and terms will vary, I am just looking for ballpark figures and common things that affect those numbers.

Jastiger
Oct 11, 2008

by FactsAreUseless
Analytic engine:

Absolutely not. Generally renters insurance is a blanket amount that covers all your belongings. Have more belongings? Raise the limit. Have specific items worth more that you want a special coverage for outside the blanket, often with no or lower deductible? Schedule that item. For computer stuff I probably wouldn't do that though since if it's gone, it is generally more than just the computer and you'll want to be under the cheaper blanket coverage.

adorai:

Landlord policies can be described as "everything that is not the tenants". This includes, for a condo, the unit itself, the large appliances, and any liability that may be yours if damage is caused to other units. If a tenant destroys a permanent structure in the unit, you'd be covered. It wouldn't cover you if their stuff got stolen. That is on them.

When you talk about repairs you have to be careful. They will cover a COVERED LOSS under COVERED PERILS. Covered perils are generally fire, wind, etc. This often doesn't mean normal wear or specific maintenance. Also, a savvy policy holder doesn't make a claim unless he has to since each claim can raise the rate for the next term.

A landlord policy will be based upon the area, how long you've had it, the quality of the unit, loss/claim history, and of course how much coverage you want and which kinds of coverage you want. It is not based on potential rents, unless you're looking at the specific loss of income part of the policy. If you're looking at about $900 a month for a unit worth $120000 or whatever, depending on credit history you'd probably see $400-700 a year depending on a ton of variables.

If you give me more info I can narrow it down. Does that answer it for you kinda-sorta?

Adbot
ADBOT LOVES YOU

ChikoDemono
Jul 10, 2007

He said that he would stay forever.

Forever wasn't very long...


(Continuing from our email discussion)

Since I only have a learner's permit, would it be possible for my mom to get insurance on the car and then take over or get my own once I do get a driver's license?

  • 1
  • 2
  • 3
  • 4
  • 5
  • Post
  • Reply