This could more than double insurance premiums.

Looks like the Attorneys and the Mega’s Lobbyists are at it again.

 

It doesn't actually double the cost. I carry 2 million liability to satisfy a direct customer and the second million is only $1100 or so because the likelihood of the first million being used and then running into the second million is so unlikely.

 

We'll all go down together at least.

 

Except the Megas, are self insured. Already at an advantage.

 

Yeah, some advantage. Instead of eating the first $250K of EVERY 'incident' the may need to up it to $500K -or- more to get their 2nd tier coverage as the 'covering' companies will want them to put more skin in the game plus the will now have more additional companies looking for the excess coverage in the secondary market will cut into the pool of secondary insurance carriers looking to cover the megabums.

The insurance companies will see the advantage of writing numerous 'little' policies because the little guys won't use the secondary coverage as much as the per company catastrophic losses should be significantly less than something like the WalMart crash into Tracy Morgan's limo-bus on the NJ Turnpike.

Bottom line is we all will pay more as the insurance companies have us by the short hairs and are tugging harder!

 

Don’t be fooled. If you carry 2 million you will more than likely be sued for the full amount. Just the same as it is now. Got a million. Get sued for a million.

The conversation will go something like this:

Lawyer: Ma’am There is no question that you caused the wreck and severely injured the truck driver and only broke the little toe on your left foot. But big trucks must carry 2 million in coverage so I recommend that you sue for the full amount. “We” can take less if necessary.

 

Premiums are based on risk of payout. Not profit. So if the likelihood of Dipping into the second million is low. So will be the premium increase. Vehicle insurance companies make their money by investing those premiums. Why you see higher rates with one company over another is customer based. As it is a shared "risk pool." More customers. More people "sharing/splitting" the "risk."

 

@kemosabi49 You are dead on with your advice. How many will follow the amendment and make those phone calls?