Biggest Insurance Mistake I See People Make!

Enjoy the latest Guest Blog from Kory Wermerskirchen, who is in my networking group! 

I have been in the insurance industry for 10+ years, and continually the biggest mistake I see people make is with their liability limits.  This is what protects you and your assets should you be liable (at-fault) in an accident.  As the publicly traded online insurers have pushed to commoditize the insurance industry, the push for saving money in as little of time as possible has increased drastically.  Besides the issue of spending less time on insurance than you do on your Amazon order, there is significant risk aligned with this quick decision. In MN if you don’t have sufficient coverage for an at-fault accident, nor the ability to pay out of pocket for damages exceeding your insurance coverage amount, they may garnish up to 25% of your wages until that debt has been repaid.  Could you afford a 25% pay cut in perpetuity until your debt is repaid? I know my family couldn’t.

Many companies advertise the price without much attention directed to what you are buying, and what money conscious person would select the $100/month option over the $90/month or $80/month option? Increasingly I see people selecting the $80 option, which often means they have the State Minimum Liability coverages of 30/60/10.  When I chat with these same people and ask how long it would take to accrue $30k in Medical Damages at the Hospital, or how many cars on the road are worth less than $10k, they all unanimously answer, not long and not many.  And they are right.  Yet usually unbeknownst to them, that is exactly how much coverage they have right now.
​
So if you really only have 15 minutes to spend on determining your coverages, spend it with a local reputable agent that can inform you of what you are buying and the potential risks associated with it.  Or at the very minimum double check what you have, and determine if that is sufficient to protect you and your family.  Your financial future may depend on it.
 
Kory Wermerskirchen
Marty Bothwell Agency         
Ph:   (952) 937-5556
Fax: (952) 975-9217
[email protected]

---