Insurance Questions and Answers

[Likwid]

So let me start a thread to help with some of the most common questions and answers. As insight, my job deals with making insurance easier to understand and such, so any feedback you have for me in terms of explanations or what needs further information is really helpful.

I've mentioned it before, I am not a licensed agent, so you'll want to consult a licensed agent with any specific questions pertaining to you and your needs. Additionally, I work for Progressive Insurance, nothing I say here is the opinion of Progressive. All opinions are my own.

Coverage Information

Bodily Injury and Property Damage:

Protects your assets when you hit someone else and hurt them or their property (including car).

Limits are typically set as something like this $50,000 per person/$100,000 per accident/$25,000 property damage.

What this means is that if you cause an accident with another car and injure 3 passengers in that car your carrier will cover you for UP TO $50,000 per person injured to a maximum of $100,000 for the 3 passengers, and provide up to $25,000 to pay for their property (car, house, etc that you may have damaged).

Sometimes you'll see something like 300CSL (combined single limit), this means for any accident your carrier pays out a maximum of $300,000 for EVERYTHING in the one accident.

Comprehensive:

Repairs (replaces, gives cash value, etc) your motorcycle in instances of any damage done NOT as a result of a collision with another vehicle.

Limits are set as deductible and look like $500 deductible.

What this means is if your bike catches on fire and you want it repaired you will pay $500 out of pocket and the carrier will do the rest.

Collision:

Repairs (replaces, gives cash value, etc) your motorcycle in instances of any damage caused as a result of a collision with another vehicle.

Limits are set as deductible and look like $500 deductible.

What this means is if you hit a car/motorcycle/golf cart and you want it repaired you will pay $500 out of pocket and the carrier will do the rest.

Medical Payments:

Pays for medical expenses resulting from an injury you or your passenger(s) while riding on your bike.

Limits are the total amount the carrier will pay, looks like $5,000

What this means is if you have medical expenses totaling $4,000 your carrier will pay up to $4,000. Keep in mind lots of carriers function differently and some pay after health insurance, some pay before. etc.

These are the basic coverages for Ohio. What do you want added? I'll update this thread with requests.

Edited June 2, 2009 by Likwid

[Likwid]

How do I get sued etc?

So this is a long discussion but I'll hit the real small easy answer of what people are talking about. I'm not a lawyer so I can't give you legal advice.

If you cause an accident that causes $1,000,000 worth of damage to someone's house, car, hotel, OR their medical expenses and pain and suffering. You are liable for the $1,000,000 (let's assume that amount came from a judge or something, not from a repair estimate)

So you can't afford to pay $1,000,000 out of pocket (if you can please contact me), so you go get insurance. The Bodily Injury and Property Damage coverage is what protects your assets/money. If you carried limits of $12,500/$25,000/$7,500 (Ohio minimum I believe) you'd be on the hook for $975,000 (assuming the damage was all to the people)... still a lot of money.

This is where higher limits come into play, if you carried $100,000/$300,000/$50,000 you'd be on the hook for $700,000... see where this is going?

My insurance only goes up to XYZ limits HELP!

Ok so first and foremost stop yelling. Secondly you need to sit back and look at what risk you are willing to assume. Additionally, keep in mind what you own.... if you live in a van down by the river Lebron James can sue you for 100 million dollars.... but he's not going to get it...

Now if you have a half a million dollar house, 3 jags and your motorcycle and he sues you for 100 million dollars is everything you own at risk? Yes.

I need more coverage!!!

Again, stop yelling. If you are carrying maximum limits and it is not enough you need to look at something called an Umbrella policy. I don't even know enough about these to write up a summary, but JRMii works for an insurance company as well and he may be able to write up a quick summary.

Edited June 2, 2009 by Likwid

[Likwid]

Protecting yourself from other people continued...

So what can you do besides carry Bodily Injury and Property Damage (BIPD is required in Ohio)? You may want to look at Uninsured/Underinsured Bodily Injury and Property Damage (UMBIPD). We all know everyone follows the law right? Well you may be shocked to hear a lot of people don't

*pause for gasps*

If you are hit by someone who does NOT have BIPD who's liable? They are... but odds are they don't have sufficient assets or cash to pay for the damage they cause... this is where UMBIPD comes into play. You're basically insuring EVERYONE else.

If you have a LOT of money and assets you probably have high BIPD limits... but if everyone else carries the state minimum you run a higher risk.

Why is XYZ Inc. so much more expensive than ABC Corp?

It's all based on risk...

1. XYZ viewed you as a lower risk than ABC and/or XYZ views your potential profit greater than their risk.

2. Coverages weren't equal. Sometimes agents will "match or beat" price while adjusting coverages (I know you said same coverage, just throwing this out there)

3. You have/had another policy with XYZ. ie, homeowner/auto policy

4. Something else we'll never know

There are many different methods for determining premium for new quoters... some companies write very cheaply (lots of times at a loss) and than make it up in investments or other methods (like customer service or claims)

Some companies write at a profit and then try to balance out with more conservative investments and/or customer service or claims.

The industry (as most have) is very rough, things change very frequently and companies that write at a loss and make it up in investments were hurt by the poor returns and companies that wrote at little profit had a hard time because lots of people shopped for insurance.

Edited June 3, 2009 by Likwid

[Likwid]

Blocking for more updates

[NinjaNick]

Nice posts.

[Likwid]

Yuck!! You're an insurance salesman?? That's fucking gross' date=' mate. [/quote']

Lol not quite. When you go to Progressive.com and put in a zip code and click continue (when you actually START the quote) I work on the look and feel for the Auto and Special Lines applications.

So the state managers say "we need X to rate them accurately"

I say "hmmm, how can I ask for X without scaring people off and so they understand" then I give that to our developers

[black box here]

Then you see it out on the quoting....

It's pretty boring most of the time, but some of the stuff I'm doing .... nm better not say it

I'm hoping to pull in a couple people with lots of experience here. JRMii and v4junkie to name 2. If you are confident in your experience with insurance and have some tips and/or tricks let me know!!!

The point of this thread isn't to beat a dead horse.... it's to answer general questions about insurance if people have them, and to help out people who may not have the life experience others' do.

Keep in mind, it's not just your actions you're protecting, you're protecting yourself from the actions of others as well.... so an educated community is a safe community!

[NinjaNick]

I thought JRMMiii was an engineer? Whaaaaaaaaat happened?

[Likwid]

He is.... I mixed up originally and messaged the wrong person... but he replied with some great info....

Lots of time it's the people that just happened to have dealt with this before have good advice

[Dustinkz1000]

I don't know how people go through life trying to sell shit for a living. If you do....that's awesome, it's just something i couldn't do.

[Disclaimer]

I thought JRMMiii was an engineer? Whaaaaaaaaat happened?

I am, the post is wrong. But if you want - I'll take your money, just like the insurance companies do.

[Likwid]

I don't know how people go through life trying to sell shit for a living. If you do....that's awesome, it's just something i couldn't do.

Sure, but you are required to have it so you can hate all you want and do nothing, or be educated so you don't let someone who may have their own interests in mind (commissions, sales numbers, etc) take advantage of you.

Or, you can talk to Ohio lawmakers and get the insurance requirement removed. Here are some links that may help you.

Ohio DOI:

http://www.ohioinsurance.gov/

File a complaint:

http://www.ohioinsurance.gov/Complaints/ComplaintMain.htm

Contact senators:

http://www.senate.gov/general/contact_information/senators_cfm.cfm?State=OH

[Dustinkz1000]

Sure, but you are required to have it so you can hate all you want and do nothing, or be educated so you don't let someone who may have their own interests in mind (commissions, sales numbers, etc) take advantage of you.

Or, you can talk to Ohio lawmakers and get the insurance requirement removed. Here are some links that may help you.

Ohio DOI:

http://www.ohioinsurance.gov/

File a complaint:

http://www.ohioinsurance.gov/Complaints/ComplaintMain.htm

Contact senators:

http://www.senate.gov/general/contact_information/senators_cfm.cfm?State=OH

I didnt mean just insurance man. I know people have to sell stuff. I just couldnt wake up everyday trying to sell something. Plus....you work from a desk, or even worse door to door dont you? That would be suicide for me.

[Likwid]

I didnt mean just insurance man. I know people have to sell stuff. I just couldnt wake up everyday trying to sell something. Plus....you work from a desk, or even worse door to door dont you? That would be suicide for me.

I hear you there (didn't meant to jump down your throat, but it's a general complaint about insurance)

No, I couldn't do it, I never have to deal with the end customer.... not in the direct sense of the word... I can't do it... convincing people to give me money for something is too tough for me... especially for something I can't GIVE them....

[SAMBUSA]

Why is it Progressive wanted $3300/year for full coverage on the Busa but State Farm gave the same coverage for $500/year?

[Disclaimer]

convincing people to give me money for something is too tough for me... especially for something I can't GIVE them....

Ohh man, you have lots to learn. Selling "piece of mind" has got to be one of the most lucrative rackets out there.

[Likwid]

Why is it Progressive wanted $3300/year for full coverage on the Busa but State Farm gave the same coverage for $500/year?

It's all based on risk... I haven't seen (and never want to see) the rating tables for both companies, but at a high level...

1. State Farm viewed you as a lower risk than Progressive and/or State Farm views your potential profit greater than their risk.

2. Coverages weren't equal. Sometimes agents will "match or beat" price while adjusting coverages (I know you said same coverage, just throwing this out there)

3. You have/had another policy with State Farm. ie, homeowner/auto policy

4. Something else we'll never know

There are many different methods for determining premium for new quoters... some companies write very cheaply (lots of times at a loss) and than make it up in investments or other methods (like customer service or claims)

Some companies write at a profit and then try to balance out with more conservative investments and/or customer service or claims.

The industry (as most have) is very rough, things change very frequently and companies that write at a loss and make it up in investments were hurt by the poor returns and companies that wrote at little profit had a hard time because lots of people shopped for insurance.

My suggestion (again just my opinion) shop around frequently... you don't have to wait until renewal, don't tell my bosses I said that... and look for a company you like... if you've had a good experience with State Farm and they are competitively priced no reason to switch to save $25. But if you shop around and now it's $500 for State Farm and say $200 for Geico take a look at other people's experiences...

[SAMBUSA]

It's all based on risk... I haven't seen (and never want to see) the rating tables for both companies, but at a high level...

1. State Farm viewed you as a lower risk than Progressive and/or State Farm views your potential profit greater than their risk.

2. Coverages weren't equal. Sometimes agents will "match or beat" price while adjusting coverages (I know you said same coverage, just throwing this out there)

3. You have/had another policy with State Farm. ie, homeowner/auto policy

4. Something else we'll never know

There are many different methods for determining premium for new quoters... some companies write very cheaply (lots of times at a loss) and than make it up in investments or other methods (like customer service or claims)

Some companies write at a profit and then try to balance out with more conservative investments and/or customer service or claims.

The industry (as most have) is very rough, things change very frequently and companies that write at a loss and make it up in investments were hurt by the poor returns and companies that wrote at little profit had a hard time because lots of people shopped for insurance.

My suggestion (again just my opinion) shop around frequently... you don't have to wait until renewal, don't tell my bosses I said that... and look for a company you like... if you've had a good experience with State Farm and they are competitively priced no reason to switch to save $25. But if you shop around and now it's $500 for State Farm and say $200 for Geico take a look at other people's experiences...

2. I'm sure you knew what I meant.

3. I've had Progressive since I first started driving at age 16(31 now) Not sure who has the homeowner policy(wifes job to take care of that) but I know it's not State Farm. State Farm has the Busa and only the Busa. Of course they wanted all the other vehicles too.

4 Like what?

[Likwid]

2. I'm sure you knew what I meant.

3. I've had Progressive since I first started driving at age 16(31 now) Not sure who has the homeowner policy(wifes job to take care of that) but I know it's not State Farm. State Farm has the Busa and only the Busa. Of course they wanted all the other vehicles too.

4 Like what?

Yah absolutely on 2, wanted to make sure I included that for other people though. You and I (and many others) may know what to look for when comparing, but some people go strictly off price and that can get people in trouble.

3 comes back to risk... maybe they see it as an opportunity to get your home business? I don't know.... just conjecture.

4. Not sure Could be anything... more discounts, lowered pricing to get more NB (sometimes companies do this in a particular market to be more competitive).... could be a lot of things really, but I'm just stabbing in the dark at this point!

Hope this info is helpful!

Moved this question into the first posts... I think your question comes up a lot...

http://www.ohio-riders.com/showpost.php?p=234040&postcount=3

Edited June 3, 2009 by Likwid

[SAMBUSA]

Yah absolutely on 2, wanted to make sure I included that for other people though. You and I (and many others) may know what to look for when comparing, but some people go strictly off price and that can get people in trouble.

3 comes back to risk... maybe they see it as an opportunity to get your home business? I don't know.... just conjecture.

4. Not sure Could be anything... more discounts, lowered pricing to get more NB (sometimes companies do this in a particular market to be more competitive).... could be a lot of things really, but I'm just stabbing in the dark at this point!

Hope this info is helpful!

Very informative. Great asset to the forum:cool:

[Likwid]

Thanks! I'll +rep for that (how could I not!)

Signing off for the night, but I'll keep on top of this thread.

[Likwid]

One thing I wanted to add after I thought about it...

BIPD covers the person you hit... you still have to pay your deductible... that may not have been clear

[Erieaddict]

Likwid, Thank you for the informative info on the P&C, Property and casualty for the uninformed. I have been in health, Life, long term care and anuities for the last 15 years. I tell people that i give away money for a living. the business is Always changing, and so far it has been both interesting and rewarding. I have worked both sides of the fence and by far the commision sales has many more pluses. I can make my own schedule, Want to only work 3 days next week? no problem. want to take friday off and ride to NC, no problem. Have laptop and cell phone and i am covered. Secondly, i reap the rewards for my work. For years i worked at a 9-5 job and watched the owner of the company or the corperation reap the rewards of my work. not now. What do you do if you want a $10,000.00 - $20,000.00 increase? I go sell more stuff.

best off all, i get to hand out claim checks and help out folks in thier hour of need. very rewarding and i wouldn't trade it for anything. yes, i get lots of no's and don't call me back's, but thats just part of the business of sales.

PS, pm me if you want to get paid cash for for a injury or illness

[Bigbird]

These are probably more general questions that many people here could answer, but I figured since this is already a thread for insurance questions I can post them here.

Do you think as a 21 year old male with no accidents/tickets in the past 3 years (knock on wood) I will get owned on insurance for say a 2004 GSXR 600? Not asking for anyone to tell me how much they think my insurance would be, because I know that's impossible to do. But do you thing it will be unreasonable?

Also with a bike that you finance, is it required to have full coverage? Only reason I ask this is because I'm not sure if medical coverage is included in what is considered "full coverage" when you have to have it because of a loan. I have health insurance and don't see the point in paying for it twice. Also what about the winter? If you have a loan and are required to have certain coverage, can you drop that down to storage coverage in the winter months?

Thanks!

[Disclaimer]

Do you think as a 21 year old male with no accidents/tickets in the past 3 years (knock on wood) I will get owned on insurance for say a 2004 GSXR 600?

Yes, you will get owned. GSXRs are notoriously bad for insurance because every squid and their brother owns one, and subsequently wrecks them. Especially if you plan on financing it, where you'll most likely be required to have full coverage. It's not 100%, I guess it depends on how good a relationship you have with the finance company, but the majority of them make you get full coverage and sometimes add GAP coverage (insurance on the difference between the value of the bike, and the actual loan amount) on top of that.

Full coverage dosen't typically include the "medical" rider policy... Full coverage only means you have Liability (to be insured to drive it ont he street), Comprehensive (insurance against, fire, flood, theft, vandalism), and Collision (pays for your vehicle if you f*(k up and cause an accident) If someone else is at fault, their liability coverage should pay for your bike, but collision will pay if you're at fault. Liability+Comp+Collision = Full coverage. Anything additional (Medical Payment, Tow + Rental, etc) is just additional.

In the winter, you could probably drop Liability and Collision, but they'd probably make you keep Comp coverage on it. Many cycle policies now account for that automatically in their rates so people don't have to call to drop/add coverages per the seasons. Be sure to read the fine print! Some policies will say that your libability coverage is from April - Novemeber, so you better not be riding December-March, or you'd be ridin' dirty.

[Pedro]

These are probably more general questions that many people here could answer, but I figured since this is already a thread for insurance questions I can post them here.

Do you think as a 21 year old male with no accidents/tickets in the past 3 years (knock on wood) I will get owned on insurance for say a 2004 GSXR 600? Not asking for anyone to tell me how much they think my insurance would be, because I know that's impossible to do. But do you thing it will be unreasonable?

Also with a bike that you finance, is it required to have full coverage? Only reason I ask this is because I'm not sure if medical coverage is included in what is considered "full coverage" when you have to have it because of a loan. I have health insurance and don't see the point in paying for it twice. Also what about the winter? If you have a loan and are required to have certain coverage, can you drop that down to storage coverage in the winter months?

Thanks!

I would shop around. State Farm has some of the better rates that I have seen on motorcycle insurance. Med pay coverage is a separate coverage, it is not usually included in full coverage. Most agent's definition of full coverage is comprehensive and collision. I would ask them to give you a breakdown of the insurance premium so you know what all it includes and does not include.