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Epinion aimed at youthful driversApr 23 '00 Write an essay on this topic.The other day I received a call from a young lady who wanted an insurance quote. She owned a 1991 Ford. Nothing special, no sport car rating, just a Ford. I asked what she wanted for coverage's and she said, "enough to keep me legal." I hate this reply. I believe most young drivers have no idea what this coverage means. I did the quote and she wanted to rush into my office as soon as possible to purchase the policy. Don't forget to bring proof of insurance I yelled into the phone before she hung up on me. I did her MVR report and had the policy ready to release. To my surprise she was already insured with Nationwide and the premium she was paying was very high. I read the declaration page and found she had comp/collision on her car. I told her the rate I gave her was without this coverage and if she wanted it the premium would be the same as her old policy. I had to ask, why did your old agent put collision on your car? She said that a newer car was on the policy but she couldn't afford it so she bought a cheaper car. The agent of record made the change and didn't review the coverage's with her. If you do not take control of your policy and ask questions you maybe paying for coverage's you do not need or can't afford. I don't want the coverage anymore. I asked why and she said "my car has no book value". I now take a little time to explain what she was giving up for coverage's. This is what I tell all my insured's when they refuse collision. When you pull out of our driveway and happen to hit another car, you will not have coverage (collision) to repair your auto. If your car slides on the ice and you hit a pole, there is no coverage for damages to your auto. Then I have all my insureds sign a form stating they understand what I just explained to them. Key words, book Value. Why keep collision on an auto that has no book value. Comp is fine. Fire, theft, vandalism, falling objects and glass breakage. If you have comp, you can purchase rental and towing coverage's. This coverage is reasonable and you can have a lower deductible. You may ask your agent to look up the book value of your car to help you decided if you should purchase collision coverage. If you had to get a loan for your car, you will have to purchase these coverage's. I have seen so many young people find the car of their dreams and then have the whole deal fall through because they can not afford comp/collision. I hate to tell you this but the dealership will not explain the high cost of this coverage. If you are under twenty one years of age the cost of collision is extremely high. Is it worth paying thousands of dollars a year for coverage if you can't afford to put gas in the car?  |
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