As an insurance salesman for many years, often baffles me why people do not buy a reasonable protection. Why "insure" a big risk instead of buying affordable protection? Here is my "Top 10" list of why people do not buy insurance.

1. Not required.

You may be required by a commercial contract, bank loan or automobile liability of the State the obligation to buy insurance without But in most cases, protection is a choice. It is required that you purchase liability limits beyond automobiles or requirements minimum to protect their assets beyond the withholding obligation Banking or protect your family with life insurance. Many people do not believe in buying something they do not have to buy regardless of the value.

2. Some Do not Believe in Insurance

Sometimes a customer will only purchase coverage necessary and only grudgingly. They have the belief that insurance has some value, and consider any money spent on it is a waste. No discussion of their potential risks or how insurance can be useful will have no impact.

3. Cultural Heritage no insurance value

I have been a component cultural purchase insurance. Since insurance is a product of sophisticated capitalist economies of Europe and North America, if you are out of this cultural group, less likely that the value of protection. My experience has been that the recent Asian usually focus less on the purchase of coverage. My office helps many first, second and third generation Mexican-American community in our Austin, Texas, and we can see the progression, as each generation more Americanized in their attitude about insurance.

In my experience, the opposite is true. Recent ethnic English (English or education) tend to be very focused on their potential demand and the risks tend to buy more comprehensive protection, including liability coverage than my average customer. This has sense because of the long history of insurance in England.

4. Without education about their financial risk

Many people who buy insurance do not have the experience or understanding of their potential financial risks. For example, a third of people in Texas who have no health insurance costs have more than enough income to buy health coverage, but the choice not to. Severe injury or illness can cost much more than you think. I do not think your ability to purchase at least catastrophic health plan speaks of a lack of understanding of their potential risk.

5. The denial of the known risks

This is "not going to happen" self-insurance plan. I see it all the time, clear that the risks can be economically secure, but the risk is high.

6. Not understand the risks

People buy coverage "back" every day. For example, a minimum deductible on collision car is purchased, but important, the higher liability limits are not considered. If you understand the risk, financial risk is the increased demand after a bad car accident. The pair hundreds of dollars difference in their collision deductible is trivial.

Another example is the purchase of the protection of accidents rather than life insurance. Most people do not realize they are four times more likely to die of a disease rather than by an accident. Many people confuse their risks and to think that accidents are more likely.

7. Intangible product

Beyond a policy document, insurance is an intangible product. This is a conditional with the promise of potential future economic benefit, not a car or box of chocolates.

8. Confused about insurance options

This is a problem common. Too many choices, with little understanding of the options are a recipe for confusion. A patient will not buy the protection they need.

9. Attitude unfavorable insurance companies

Sometimes people know they need to buy protection, but do not trust the insurance company pay claims fairly. Maybe they have a bad experience or do not understand a complaint result in the past.

10. Lack of funds

If insurance protection is free, everyone buy wonderful. The reality is that the coverage does cost money and you have to choose what you buy.

David W. Crump, Ross Gray Insurance Agency

I specialize in Business, Health and Personal Insurance sales and service. A graduate of Texas Tech University (BBA Marketing), I began my career in retailing of Toy, Hobbies and Games. I have been a business owner but changed careers to insurance after selling my interest in a Dallas area Game Store Chain thirteen years ago. Hobbies include Gardening, Music (Bass Vocal) and Stock Investing.

See our website at http://www.quoteaustininsurance.com/. Ross Gray Insurance Agency has a 30+ year history serving Central Texas on all facets of insurance. We are located in South Austin at 2404 S. IH-35. We are here to help!

Copyright 2009, Ross Gray Insurance Agency, Inc.

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