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Your Insurance Agent

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By Bill Kuziara

What role does your insurance agent play in the personal injury case?

The most important work your agent does in a personal injury case is before the accident happens. A good insurance agent will spend your premium dollar in a cost efficient manner and put your interests ahead of his own.

For example, insurance companies do not like to sell medical payments insurance. It generally does not provide a big profit margin and requires an agent to become involved in filing a claim even when his policy holder is not at fault.

A good agent will review your automobile coverage with you and at least ask you about medical payments coverage. Remember, auto-medical payments cover 100% of all your medical bills for you and your passengers. Many health plans exclude Chiropractic, dental, and nursing services and have large deductibles.

So why don’t all agents sell medical payments insurance? We offer three reasons:

1) The insurance companies discourage the sale because of its low profitability;
2) Agents try to lower their price by leaving it off the policy;
3) Agents have a loss ratio to protect.

A loss ratio means if an agent sells $1,000,000 in insurance premiums per year (certainly not unusual), the insurance company generally doesn’t want a loss ratio or paid out claims over 55 percent or $550,000. Agents who have a lower loss ratio get bonuses; agents with higher ratios get penalized. When you call your agent after an accident and he tells you to go to the other company, the agent might be protecting his loss ratio and not your rights under your policy.

In summary, a good agent will advise you of medical payments insurance and under insured motorist coverage before an accident. A good agent will also patiently explain your rights under your policy after an accident, putting your interest ahead of his own. The good agent will have you fully prepared for the unexpected accident.

This legal message is sponsored by The Law Offices of Bill Kuziara. This information is not a guarantee of outcome as each case varies and consultation with an attorney is advised.

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