Name Your Price Auto Insurance

A Hidden Tax on Success!

It is impossible to miss if you turn on the TV or listen to your radio. A group of auto insurance companies luring drivers with advertisements suggesting you can “name your own price” for insurance coverage. So, let’s be honest, this process is an effort to issue policies that have very low limits of coverage to arrive at a cost of insurance that meets state insurance requirements and that is acceptable to the driver.

Why should you care?

To be clear this is auto insurance, and accidents are a common occurrence. Where “name your price” becomes an issue, is when there is a serious accident with medical injuries.

Who pays? … Insurance?

If you are in an accident where the other driver is at fault, and you have medical injuries, the at fault driver’s insurance liability coverage will respond. But what if the at fault driver has low liability limits because they “named their price” and coverage is exhausted before your medical injuries are fully paid?

The next step is to access your insurance policy’s Under Insured Motorist Coverage. Do you have ample Under Insured Motorist coverage if you are hurt in an accident?

“Name your Price” will result in a large group of insured’s being inadequately insured, which puts your Under Insured Motorist coverage at risk. Being inundated with drivers naming their price and insuring for low or even minimum limits only pushes the burden of recovery from a serious car accident to your coverage.

So, in referring to this as just another tax on success, here are two final thoughts:

First, to adequately protect yourself and your family from the potential of medical injury from an auto accident where the other driver is at fault, you should consider increasing your Under Insured Motorist (UIM) Liability limit, so that is an added cost.

And secondly, if, despite your best defensive driving efforts, you are in an accident and you need to access your UIM limit, your future auto rates will be impacted by the claim against your policy. Yet another cost.

If you would like to review your UIM limit, drop Kyle an email at kshepard@shepardinsgrp.com or call 203.698.9342 for the details and costs.