Add on UM Vs. Reduced Um

[thomas_ins]

Hi, Im a new agent for a independent agency in Georgia. They just started this new coverage called uninsured motorist added-on. I understand what the traditional uninsured motorist is and the new UM added on um is, but how do I properly explain this to clients let alone reccomend which for them to take. Is there a way to decide which is better for someone? Like taking a higher limit of um reduced coverage or lower limit of add on coverage?

 

[djs]

Huh?
Not really sure what you are asking. UM/UIM is very, very cheap. Just put it on at the same limits as their liability coverage. I rarely explain it, though I mention it is there. Basically, I'll say something like:

The state requires that you have 15/30 in liability coverage, but because you are a homeowner, I recommend at least 100/300, along with your UM coverage. The state also requires $5K in property damage, but that won't even cover a decent scratch on the car. I recommend at least $50K, and actually recommend $100K.

Nobody questions UM coverage, unless it's on a motorcycle, then the premium can be high.

Or are you talking UMPD? That conversation only happens if they are considering not having collision coverage (otherwise call it waiver of deductible and people get it easier). Either way, this is extremely inexpensive coverage as well.

I get more questions about towing / roadside service than I do about UM coverage.

Dan

 

[thomas_ins]

Huh?
Not really sure what you are asking. UM/UIM is very, very cheap. Just put it on at the same limits as their liability coverage. I rarely explain it, though I mention it is there. Basically, I'll say something like:

The state requires that you have 15/30 in liability coverage, but because you are a homeowner, I recommend at least 100/300, along with your UM coverage. The state also requires $5K in property damage, but that won't even cover a decent scratch on the car. I recommend at least $50K, and actually recommend $100K.

Nobody questions UM coverage, unless it's on a motorcycle, then the premium can be high.

Or are you talking UMPD? That conversation only happens if they are considering not having collision coverage (otherwise call it waiver of deductible and people get it easier). Either way, this is extremely inexpensive coverage as well.

I get more questions about towing / roadside service than I do about UM coverage.

Dan

Hey sorry I wasnt very clear but just edited the post. In Georgia theres a new type of UM called added on.

 

[bobson]

Huh?
Not really sure what you are asking. UM/UIM is very, very cheap. Just put it on at the same limits as their liability coverage. I rarely explain it, though I mention it is there. Basically, I'll say something like:

The state requires that you have 15/30 in liability coverage, but because you are a homeowner, I recommend at least 100/300, along with your UM coverage. The state also requires $5K in property damage, but that won't even cover a decent scratch on the car. I recommend at least $50K, and actually recommend $100K.

Nobody questions UM coverage, unless it's on a motorcycle, then the premium can be high.

Or are you talking UMPD? That conversation only happens if they are considering not having collision coverage (otherwise call it waiver of deductible and people get it easier). Either way, this is extremely inexpensive coverage as well.

I get more questions about towing / roadside service than I do about UM coverage.

Dan

I recommend everyone buy as much liability insurance as the company will sell. And of course I receommend the same UM limits as why would you want to protect the other guy more than your kids, your wife, or yourself?

 

[djs]

Sorry, I can't help with new GA rules. When you figure it out, explain it to me.

Dan