Ever Wonder Why Consumers are confused by Insurance - Read this article.

[marindependent]

I have read this insurance article now three times, I still have no idea what the advice to consumers are. I'm surprised that this made it on CNBC.

Yes, consumers should reconsider their home and auto insurance every year. But "pause it"? The very last piece of advice that consumers need is to pause payment of an admitted home and or auto insurance policy.

Some prices go up every year. That doesn’t mean you have to pay those increases

 

[Markthebroker]

I have read this insurance article now three times, I still have no idea what the advice to consumers are. I'm surprised that this made it on CNBC.

Yes, consumers should reconsider their home and auto insurance every year. But "pause it"? The very last piece of advice that consumers need is to pause payment of an admitted home and or auto insurance policy.

Some prices go up every year. That doesn’t mean you have to pay those increases

What they said was pause the renewal. You and I can read through the lines and know that probably means don't renew one policy, but purchase another. There were a number bad and incomplete suggestions in here.

Unfortunately they get paid on clicks and views, not by giving good advice. This is why people don't trust the media, and the term "fake news" has legs.

 

[InsCommentary]

It is the exceedingly rare consumer article that provides sound insurance advice. The vast majority of industry advertising focuses almost solely on price. Hence we get Flo saying, "You get the SAME COVERAGE, often for less." It ain't the same coverage, Flo...I've read your policy. It's better than some and worse than some.

This article does nothing to demonstrate the insurance is not a commodity differentiated only by price. The presumption is, if you shop the same basic coverages (liablity, medpay, physical damage, etc.) at the same limits and deductibles, then you're getting an apples to apples comparison.

These articles and industry advertising neglect the fact that it's the precise language of each policy that governs. Even if different carriers are using ISO forms, their interpretations may be different. Or how they calculate ACV may be different. Or how they assess liability may be different...e.g., "Our insured was negligent but we believe he was only 70% negligent, so we're only paying 70% of the damage." You can be VERY competitive on price by using these techniques.

I sometimes wonder if perhaps it wouldn't be better if all states had a mandated policy like North Carolina, at least as a minimum standard. With a couple of minor exceptions, the NC PAP offers very good coverage that must be offered by every insurer, including nonstandards. But, of course, we still have the issue of interpretation, ACV estimation, liability assignment, etc.

 

[fed up]

If you ask me this article was nothing but a hype piece for financial planners. They want you to cut costs in other places so you can continue to fund their suggestions which should increase your savings. Of course there was no mention of shopping planners to lower costs.

 

[Allen Trent]

I like the part about having coverage for things they dont need, like probably that pesky $35,000 of other structures when they dont even have a detached garage... lol

or, how many thousands of times have I seen the average client decimated because the words home office are not listed as a specific covered item on the HO dec sheet. I think I read the most common cause of personal bankruptcy in the US was having a loss to a home office without coverage................ok, maybe it is medical bills, disability, death or lawsuit are the common ways people suffer catastrophically