Bad Coverage = Bad Rates! (And that’s WITHOUT an accident!)

When somebody asks for an insurance review or a quote, one of the most important pieces of information to gather is the driver’s license number.  This is because the license will usually allow the quoting system to look up and corroborate the prospect’s prior insurance coverage and liability limits.  When this information isn’t pulled up, I have to go off of what the prospect tells me, or I have to guess until I can confirm the prior carrier information.  This situation allows me to reiterate an extremely valuable point:  Your prior liability limits are a huge determining factor in the rate you’ll pay when you try to switch carriers, and it’s DRASTIC.   

Back to my scenario above:  when this happens, I’ll essentially give three quotes to the prospect and say that depending upon the current liability limits being A, B or C, the rate will be approximately X, Y or Z.  As I continued to enter improved prior limits in the system, from 50/100 to 100/300 to 250/500, the quote was improving by over $10 a month for each tier.  Here’s a table of this particular situation for easy viewing:

Prior Limits     Estimated Quote

50/100                 $115/mo

100/300               $91/mo

250/500               $79/mo


Generally speaking, the higher your liability limits, the more favorably the insurance company views you as a risk.  Oh, and by the way, Having better coverage also helps if you get in an at-fault accident.  The $50,000 check that the insurance company will write on your behalf when you have 50/100 coverage has to cover the $200,000 in medical bills and the $500,000 civil suit that’s filed against you.

For a further breakdown of these liability limits and what they all mean, check out the AUTO page.

In summary:

If you don’t improve your coverage for the sake of being adequately covered, improve your coverage for the sake of saving hundreds of dollars.


Bump up your current insurance coverages and call me in six months!



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