I received my agent’s license, and commenced to sell New Mexico automobile insurance in the year 1995. I was working for an agency at the time and was quickly introduced to the arena of insurance. It was fascinating to me then, and it staggers me today how very little some of the people understand about the ideas of insurance. I’m going to give you an exaggerated example of what I am talking about. It was really one of the first policies that I ever sold. An white hair man walked into the office and said that he wished to buy insurance on his 1970 something pickup wagon. The car was more than 20 years old and I knew that actual damage coverage was intended to be tricky to get, and also not needed ; I did not even offer it to him. I asked for his driver license and registration and proceeded to quote a culpability policy with uninsured motorist coverage. I believed that this would be acceptable for his wants and he was fond of the price, so I wrote the policy. He signed the application and paid me his cash. I photocopied the signed application, gave him an invoice and evidence of insurance card and told he he had New Mexico vehicle insurance.
I’ll never forget his reply for so long as I live : OK, I want to lodge a claim.
You see, my truck burned up in a fire yesterday evening and I need for you to pay for the damages. If you would like to see the vehicle I have got it loaded on a flatbed trailer and parked good outside your office.
Would you like to see it? I was so astounded and gobsmacked at his answer that the one thing that I could think about to assert was : yeah, let’s go look. He walked me out to his wagon, and sure enough it was burned to a crisp, I mean the seat were nothing except burned foam and metal, and the paint was burned and black, there had been not an electric wire in the entire auto that was not absolutely burned and black.
I looked at him and declared : This occurred yesterday evening, right? And he responded that it did occur yesterday evening, and he even told me precisely how it occurred. I do not remember today how the lorry burned, but he told me about it. I then explained to him about the insuring agreement in the insurance contract, and that it wouldn’t provide coverage for any event which happened before the time that coverage was bound, or after the time the coverage expired or canceled. I did not even trouble to mention he had no physiological damage coverage. He believed the insuring agreement was a scam to mug folk of their cash. I was under the impression that he was really unlettered and gullible to suspect that the insurer would consent to fix his vehicle outside the insuring agreement. My opinion is that most of the people are far more educated about insurance than the example above, it does illustrate an exceedingly excellent point, and that’s that New Mexico automobile insurance is a complicated contract and you want to talk with an expert about your insurance wishes.