For your clients who operate vehicles commercially or personally, property damage coverage is an important aspect of their overall policy. This coverage is often mandated by law, but even where it is not, it is well worth the investment. It protects your clients if their vehicles damage another vehicle or someone’s property, heading off a potentially expensive lawsuit or other costs.
Sometimes, the cost of damages exceeds what your clients have set out in their property damage coverage policy. In these cases, they will be responsible for any additional costs. It’s important that your clients understand this and that they have adequate coverage for potential costs. Choosing a higher limit for the coverage is one solution. Or your clients may benefit from an umbrella liability policy that extends the reach of their insurance. It is also important for your clients to understand that property damage coverage does not extend to your clients’ vehicles, so collision coverage could be a welcome policy addition if that is a concern.
Why Your Clients Need Property Damage Coverage
Property damage coverage is usually one half of liability auto insurance coverage. The other component is bodily injury liability coverage, which protects your client if they injure someone with their vehicle. Together, both property damage coverage and bodily injury liability protect your client and their assets.
Property damage coverage protects your clients from paying out hundreds of thousands of dollars when they are found to be at fault in an automobile incident. Popular personal finance expert Dave Ramsey suggests that individuals invest in a lot of liability insurance, even when it is not mandated by the state. His recommendation is to carry at least $500,000 worth of coverage, encompassing both property damage coverage and bodily injury liability. Otherwise, as he notes, drivers are responsible for paying any ensuing damages and costs out of pocket, which sets individuals up for major financial risk.
Finding the Right Property Damage Coverage
If it is non-mandatory in their state, there are many reasons that your clients may not have invested in property damage coverage yet. The same reasons hold true for individuals who would benefit from extending their coverage limit in a mandatory state but have not done so. It often comes down to underestimating the potential cost of risk or thinking they are ineligible if they fall into categories deemed riskier.
Looking at common fixes required after a collision, the amounts add up quickly. Even a dented bumper can cost several hundred dollars. The cost of repainting may be in the thousands. And if the frame of a vehicle is bent, it’s typically well over $10,000 to repair. The costs of non-vehicle property damage are surprisingly high, too. For example, if your client hits a tree with their vehicle, it could cost several hundred dollars.
Looking at the potential cost of property damage can help sway your clients into purchasing or extending coverage, but what if they have been deemed too risky in the past? Risk factors for drivers seeking insurance include age, driving experience, driving record, claims record, credit history, vehicle type, and previous insurance coverage. Other elements include the vehicle’s annual mileage and how your client intends to use their vehicle. Some of these factors might seem daunting to your clients, especially if they have a poor credit history or a less-than-stellar driving record.
If you can provide the right property damage coverage and other auto insurance to these clients, you are providing them an important service, as well as expanding your own ability to write more business. It is not always easy to place risky clients with the insurance they need, but Prime Insurance Company is dedicated to looking at each request and providing coverage wherever we can. We are willing to work with your clients even if they have faced property damage coverage issues in the past.
If we are able to provide coverage, your clients can expect fast and fair results if they make a claim. We understand the value of a transparent claims process and work our hardest to keep every party informed as much as we can. This, too, helps you write more business, as clients come to understand that you are focused on getting each client the results they deserve.
We would love to talk more about how we can help you write more business to better serve your clients. Get in touch with Prime Insurance Company for a quote with our general application found here. Contact us online, call 800-257-5590, or email us at firstname.lastname@example.org. You can also keep up with us on Facebook, LinkedIn, YouTube, Instagram, and Twitter.
Authored by Rick J. Lindsey, CEO, President, and Chairman of Prime Insurance Company
Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. Prime Insurance also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are Prime Insurance can help.