Insurance is simply a transfer of risk from you to an insurance carrier, but what is commonly known as an insurance policy is really you placing a bet. I am truly a dealer of insurance who shops your insurance needs through several carriers based on your risk tolerance and what you stand to lose. The only difference is as an agent I am on your side and not the house’s side. I help my clients by educating them on what certain types of coverage can do for them and they make the final decision as to what they think might happen and what they are betting won’t happen.
One of my biggest pet peeves are the insurance commercials announcing, “Legal For Less!”. Yes you are legal, but you’re also asking to be dealt a losing hand. I have prospective clients come to me and ask for this type of coverage, but I honestly won’t even take their money because it isn’t a good bet. An example of this is in auto insurance. The state minimums here in Arizona for Bodily Injury are 15k per person and 30k per occurrence and 10k for Property Damage. For Property Damage if you were to get in an accident and cause damage to a vehicle or other property greater than 10k, then you are personally liable for the difference. Your wages can be garnished and there are very few cars on the road worth less than 10k, so why is this a common bet that people place? The number one reason that is given is money. For as little as a Venti Frappachino a month one could increase their limits to the next level 25/50/25 and have 25k in Property Damage. I advise my clients to carry liability limits of 100/300/100. This way you are risking less from what you have to lose personally and allowing the insurance carrier to foot the bill. Increasing your coverage will not cover you for EVERYTHING, but it does hedge your bet towards a winning hand. The next time you look at your insurance declaration pages ask yourself- “Where are you placing your bets and could you be gambling it all away?”