It is often said that the general public has little knowledge of what’s in their insurance policies and how they work. Coverage Opinions set out to see if that’s true.
So I headed to my local mall, in search of John Q. Public, to ask him some basic questions about insurance. After approaching a few people and being told to get lost – they heard the word insurance and thought that I was trying to sell it to them -- I found my man. Standing outside of Gap, eating a Cinnabon and drinking an Orange Julius, was John Q. Public.
I approached JQP and made my pitch. He was skeptical at first. Asked if he’d get paid. No. Wondered if doing surveys in the mall was allowed. I didn’t know – but saw no sign saying I couldn’t and the mall cop on the Segway looked asleep. He was worried that there was a hidden camera and I was part of a reality T.V. show designed to make him look stupid. Not at all. So after a few minutes of explaining, and assuring, he agreed to chat with me.
Coverage Opinions: John, thanks for letting me ask you a few questions about your insurance policies.
John Q. Public: Are you sure this isn’t some stupid reality show?
CO: It’s not. I promise. I’m just looking for someone to speak to me about their insurance policies. I want to get a sense of what they know. It’s for an insurance newsletter.
JQP: An insurance newsletter? People read such things?
CO: I hope. John, tell me about the kinds of insurance policies that you have?
JQP: Well, if I don’t get home from a night out until the next morning, my boy Bobby will tell my wife that I crashed at his place. (John winks. I chuckle – and start to regret this idea.)
CO: What about the kinds of insurance policies that you buy?
JQP: Well, I have life insurance.
CO: Good, that’s important. What kind?
JQP: What do you mean, what kind? The kind that pays money if you die. You really write an insurance newsletter?
CO: I meant what kind – whole life or term life?
JQP: I don’t know.
CO: How much is the premium?
JQP: Around 50 a month.
CO: Ok. You have term life.
JQP: What’s the difference?
CO: Whole life is permanent insurance. It’s very expensive, but you can’t outlive it. Term insurance is much cheaper, but it expires. Probably at age 70 or 75. You have to check the policy.
JQP: Meet my wife. I don’t want to make it until 70. Permanent life? Whoa, that’s a scary thought.
CO:: What about car insurance?
JQP: Of course I have that.
CO: What are your limits for liability?
JQP: I have a 2013 Subaru Outback. What’s that worth?
CO: No, I meant how much insurance do you have if you get into an accident and cause someone else to be injured?
JQP: I don’t know. I guess however much it takes to get the person fixed up.
CO: Who is your car insurer?
JQP: Gecko.
CO: You mean Geico.
JQP: Of course. (John laughs.) It took longer than 15 minutes and I didn’t save 15%. Tell your people.
CO: They’re not my people. So you have no idea how much coverage you have for liability?
JQP: I don’t know. I told the guy on the phone I wanted the least expensive policy they had. It’s all the same.
CO: Do you have an umbrella?
JQP: Do I have any umbrella? What kind of question is that? Do you see me holding an umbrella?
CO: Do you have homeowner’s insurance?
JQP: Of course.
CO: How much is the deductible?
JQP: Homeowner’s insurance isn’t deductible.
CO: No, no, no. I asked how much is the deductible?
JQP: Oh. Thousand bucks.
CO: What are some things that your homeowner’s policy covers?
JQP: It covers my home for fire and burglary and if someone trips on my sidewalk and gets some lawyer to sue me.
CO: Did you know that it may also cover you if you get caught peeking into your neighbor’s window.
JQP: Come on, there’s no way.
CO:: Really.
JQP: Wow. I had no idea. Wish I had known that sooner.
[Enter Mrs. John Q. Public.]
Mrs. JQP: John, who is this man? Why are you taking to him?
JQP: He’s asking me some questions about our insurance.
Mrs. JQP: We don’t need any insurance (glaring at me). I leave you alone for ten minutes… (glaring at JQP).
JQP: No, he’s not….
Mrs. JQP: Why are you drinking my Orange Julius?
CO: Thanks John.
JQP: No problem. And thanks for explaining term insurance to me.
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