I have been in the insurance industry since 1988 when I went to work for the most well-known auto and home insurance company in the U.S. I held a number of positions with that company over the years, all in the claims department. I saw what happens when people don't have the right amount of insurance coverage. They have to find another way to pay for damages. This is especially problematic when they caused an accident and had to pay someone for their damages.
Two quick examples: A man was stopped at a red light and was lightly tapped by another vehicle. The bumper absorbers barely moved. Yet, he had a pre-existing condition, a bulging disc; that had been asymptomatic. Yet, that small tap paralyzed him from the waist down. The person who was driving was 30 years old and had just purchased her first house. It impacted her in ways you can't imagine.
Second example: A doctor was coming home one night at about 10 p.m. After working a long shift at the ER. He rubbed his eyes and didn't see the light turn from green to yellow to red. He ran the light and killed 2 people in the ensuing accident. In an instant, his life changed.
Both of those claims exceeded the amount of liability insurance each driver carried on their autos. Their personal assets were now exposed. Their income, homes, investment accounts, and anything else of value were now exposed to a judgement. The doctor lost his home and sizeable investment accounts. The young lady had her wages garnished for a long time.
I tell you these stories because I read another article this morning about USAA following the lead of Allstate, Travelers, and many other companies making cuts to their staff, including agents. Whether I was in claims or now that I'm an agent, there is one thing that always stood out to me. A person with a good agent was rarely in a situation where they didn't have adequate coverage.
It's not just liability claims. If your house is not insured properly, the insurance company won't pay enough to rebuild it. Even on partial loss claims, like a roof, you might end up paying more than your deductible if you are not insured to value. These little things can disrupt your life in ways that you can't imagine. Trust me, you don't want to be like our two examples.
Buying insurance off a website tends to be a 'one size fits all' scenario. They don't really get to know you and your future plans. A good agent, whether it's me or someone with another company, tailors your insurance to fit your needs. Just like a good investment advisor. They talk to you, get to know you and find a way to meet your needs.
As these companies look for ways to increase profits, which is how they justify all these changes, they will also expose themselves to more lawsuits because clients didn't have the right amount of insurance. It's not a good business model to survive in the long run. For the company or for you.
