Cat Cover

Q. All I really need is coverage for a large claim. The plan I have now has a $10,000 deductible is increasing the premium so I am looking for something less expensive but with more coverage. I found a plan with a $2500 deductible that is less money. All I really need is hospitalization coverage. I don’t need an agent, would rather shop on the internet. What is wrong with that?

A. Nothing is wrong with shopping around, as long as you understand what you are comparing.

The plan you have now has an at risk amount of $15,000 on a major claim. The plan you are looking at will pay about half your claim, if you are lucky, on a major claim.

A family friend was injured in a car accident in late May. Her bills so far are $680,000 and counting. Your current plan would have paid all but about $15,000.

The plan you are considering changing to would have paid $100,000. You would be responsible for the rest.

Still think you don’t need an agent?

This entry was posted on August 21, 2006 at 3:16 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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