Insurance: Comparing apples to apples – Part 1

We live in an economic culture of “How much will it cost me a month?” Ask any car dealer, appliance salesman or loan broker. Purchasers are primarily concerned with the payment amount, and secondarily concerned with exactly what they are buying. I am often stunned by this phenomenon as it relates to insurance.

There’s quite a difference between a Chevrolet Spark at 13K and a Mercedes SL65 at a tad over 300 big ones -— and a whole lot in between. People take note of that. But there is also a wide variance in insurance products and, like anything else, you get what you pay for and not one bit more.

Where does fraud and deception occur? When consumers are not given a complete and fair explanation of the availability of SL65 products as they compare to the Spark — and sold solely on the basis of “This is all it will cost you per month…” T’is the behavior of slick salesmen looking for a fast buck. Your buck.

This is going to be one of those two-part columns because of space constraints. Today I want to talk about automobile insurance because, with few exceptions, we are all consumers of this product.

Nevada, mostly because such a high percentage of bumper-thumpers reach the litigation stage, is a costly place to have to insure an automobile.

There are mandatory liability requirements (mostly to protect the “other guy” if you are at fault) required by state law. The lowest priced insurance is the bottom rung of that ladder and it provides bodily injury coverage of $15,000 per person and $30,000 per accident and $5,000 property damage. That’s all you need to be “legal,” but is it adequate? (Wow, knock over just one little light pole and see how far that five grand gets you!)

If you own your home (or have a decent equity), own or have equity in other valuable property, have a retirement plan or 401K or other investments, or even if you’re young and have many income-producing years ahead of you, THINK before you settle for the “low monthly payment.”

Even a non-intentional act can be determined to be negligent … and it could cost you everything. With a 15/30 policy, your limits are exhausted at those numbers.

Purchasing uninsured or underinsured motorists’ coverage is what protects YOU from being injured beyond the low limits carried by a negligent driver who injures you. Those limits generally match the liability limits you purchase. They’re not required by law, but they are wise to consider.

So is comprehensive (fire, theft, glass damage, etc.) and collision options — each subject to deductibles. You can also get rental reimbursement, towing and road service and any number of advertised little goodie coverages designed to attract you to a certain insurer.

My point is to KNOW exactly what you are buying, to understand where your policy falls in the range of what’s available, and to READ THE SMALL PRINT.

And just between you and me? Keep detailed records of all insurance transactions because some companies tend to make mistakes.

Drop by the Pahrump Valley Times offices, 2160 E. Calvada Blvd., for a copy of Leslie Kim’s latest book “123 Main Street … the Scamming of America.” Only $19.95 while supplies last.