Cannot help but wonder why insurance companies still mass mail the United States of America.  I admire Berkshire Hathaway and have read the annual report for Geico, it is fascinating and explains why they do so much advertising.  Direct mail is great and when combined with clever ads and phone calls can be great.  BUT what if it all stopped?

See when a small local business uses a Groupon or other really inexpensive offer they are giving to their audience versus Geico or other large company just trying to take.  By giving they get great word of mouth and an increase in business.  Would love to see insurance companies adapt a bit.  How about if we are going to spend $100,000,000 or more on advertising you instead give half your budget to the insurance side of the business so they do not have to raise rates and you spend what you have left telling people about what you did?

Just an idea that will never happen.

I doubt it.  but yet on a regular basis people come to me and say “I have plenty of coverage…”  The reality is none of us know when or even if we will be involved in a serious accident where hundreds of thousands of dollars will be paid out.  The second reality is any agent that wants to basically force a limit of coverage because of some sort of “rule of thumb” is not an agent I would want to hire.

Before you accept an amount, let’s say $100,000 per person $300,000 per occurrence ask yourself this; If somebody else hits your car and you are injured and out of work or even severely injured are you only worth $100,000?  I doubt it.  Then ask, was I told how inexpensive it is to increase the coverage?  The answer is likely no.

So if you trust your agents Psychic ability, when you take out the policy please ask he or she to buy you a lotto ticket.  Now if you live in reality land, work with an agent who has a good sense of logic and knows how to spend your dollars efficiently.  Either way, best of luck!  Just some ideas being shared.