Transcript:

Shelly: Welcome to the Pulse Insurance podcast, where we discuss the latest insurance news in personal and commercial insurance in Oregon and Washington. I’m your host, insurance agent Shelly Campbell of Pulse Insurance. I’m joined again today by Oregon insurance agent, Doug Hartley, of InsureSource Agencies. Glad you came back, Doug.

Doug: Hello again. Happy to be back. I see online that several people listened to your first podcast on Boiling the Frog. That was fun. What have you got for us today?

Shelly: Today, I wanted to talk about a disturbing trend where drivers are finding that they have inadequate liability limits of insurance after an accident.

Doug: Disturbing how? $25,000 is a lot of money. That should be enough to cover just about any accident, right?

Shelly: I see that grin. Being an insurance agent in Oregon, you know that the state minimum required for auto insurance will be enough to cover most accidents. But what vehicle owners don’t understand is that figure is peanuts compared to what could happen if more than one other car is involved.

Doug: Are you seeing a rise in the number of accidents going over auto policy limits lately?

Shelly: Getting close, definitely. One last month actually exceeded the client’s policy limit of $50,000, double Oregon’s minimum.

Doug: What did he hit? A BMW?

Shelly: No. Worse. A semi.

Doug: Ouch. A semi? As in a tractor truck and trailer?

Shelly: Yep. He rear-ended him so hard that the impact pushed the semi-truck into the car it was following. So, between the two vehicles he is responsible for, the amount of destruction exceeds the property damage liability limit in his policy.

Doug: Was anyone hurt?

Shelly: Yes, but the client didn’t want to go to the doctor for fear it would take away from the amount his company would pay to the other parties.

Doug: That was noble of him.

Shelly: But unnecessary, since he has a separate limit of medical coverage for himself and other passengers.

Doug: What happens now?

Shelly: He’ll receive a letter from the insurance company informing him that the claim has reached the limit it is required to pay and that he’ll be on his own for what’s left after that.

Doug: I guess he learned his lesson to carry higher limits for next time.

Shelly: He’s already requesting a quote for how much more it will cost to raise his limits.

Doug: But, of course, that won’t help him in this situation.

Shelly: No, only for future claims. He was surprised to discover how little more it cost to double his liability coverage. As vehicles are getting more expensive and the costs of medical care are going through the roof, it’s more important now than ever before to explore higher limits.

Doug: The additional premium is peanuts compared to the potential of losing everything. But, how much is enough?

Shelly: That question is best answered by turning it around and asking, “How much are you willing to lose if you don’t raise your limits?”

Doug: Good point. All this talk of food is making me hungry. Mind if I have a handful of your chocolate covered peanuts?

Shelly: Help yourself, I don’t mind.

Doug: Thank you. Maybe I can talk you into returning for another episode on my channel over on InsureSource podcasts.

Shelly: I’d love to. In fact, your first episode about mileage-based insurance has really got me thinking about how I can save clients money. Everyone I’ve talked to this week was happy to share how many miles they drive, and we started making adjustments to their policies.

Doug: Glad to hear it. Oh, and when you come next time, I’ll have your favorite peanut butter cups waiting for you.

Shelly: Mmm, you know me too well. I’ll be there. This has been the Pulse Insurance Podcast, and I’m your host, insurance agent Shelly Campbell. Join us next time as we explore the exciting world of insurance, helping you save money and protect what’s yours.

Doug: And if your insurance candy dish is getting a little too low, give Shelly a call and she’ll help fill it for peanuts so you won’t be left short when you have a claim.

Shelly: Haha. Don’t quit your insurance job, Doug.