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Michigan Car Insurance Laws and Requirements 101 - What you need to know - YouTube
Channel: Think Insurance
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hey guys today we're gonna go through
the insurance in Michigan I'm gonna go
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over the coverages you have to carry the
coverages you should carry and then give
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you some pointers at the end because
there's a couple changes coming out
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actually a lot of changes coming across
in the next few months with Michigan if
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you know this channel my name is Mark
Flockhart
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I'm licensed or have been licensed in
over 40 states currently have been doing
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insurance for close to a decade so I've
got a lot of experience in different
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areas I'm really specializes in finding
the best discounts. I work really well
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with certain companies and
have found that a lot of people a lot of
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the prices that people overpay for have
to do with one not knowing the coverages
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they need or should get into that
each it doesn't really know what they're
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doing as far as giving every discount
that the person deserves that's
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interesting you definitely subscribe
Lourdes let's jump right into Michigan
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what you have to carry there's four
parts to the insurance in Michigan
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there's the bodily injury the property
damage
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you've got pip or personal injury
protection and then you also have the
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limited property damage let's start with
easy part limited property damage
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required can't remove it it's a million
bucks get over it it's there it's cheap
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by the way so that part I don't care
about you've got the bodily injury so if
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you injured somebody in an accident its
minimum is twenty thousand per person so
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if there's one person hurt forty
thousand per accident so if there's
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multiple people hurt in the car accident
it's your fault
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it'll cover a twenty per person up to
forty thousand per accident property
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damages the third piece now that's
covering the other person's car it's
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gonna cover a minimum of ten thousand
dollars typically you're gonna carry
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more than that but that's just what the
state requires the last piece is
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personal injury protection and that part
is what makes an insurance in Michigan
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so unique from the rest of them if you
look at other states you've got like
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Florida and Pennsylvania and Washington
and all these Texas even those states
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offer PIP or personal injury protection
but it's nothing like what Michigan does
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however that is changing so going in the
future they're actually gonna lower some
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of those coverages allow you to select
different limits if you guys want to
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learn more about that I actually
a full video on the changes that
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Michigan is actually proposing it has
been laud to changes of July first feel
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free to watch that video when you're
done with this one the average right now
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across the US Florida Michigan all these
states right the average is about twelve
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to seventeen hundred dollars per year
for one auto full coverage one driver
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that's the common in Michigan it's
actually twenty seven hundred dollars
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per year
pretty crazy it's a thousand dollars
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more if you get closer to Detroit
Michigan then you're gonna be as high as
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55 to 58 hundred dollars per year for
the insurance it's ridiculously high and
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that's one of the reasons that they're
changing some of the laws they're making
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it so that the state or the area that
you live in isn't gonna be rated the
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same it's gonna be grouped up into
different spots they're changing the way
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that they rate they're even going to
give you a freedom or kind of a break or
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if you haven't had insurance they're
going to give you kind of a leeway on
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that but if you want to learn more about
that like I said I'll put that in the
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description here so the medical portion
although will change in July is
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currently unlimited if you get injured
doesn't matter if you've lose your whole
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arm and it's three million dollars to
get to get prepared put back on
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functional right if it's a three and a
half million dollar job completely
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covered on the policy it's required now
what that does for you is it helps a lot
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in those major scenarios but the average
medical claim is not that high so that's
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one of the reasons they're changing that
law as far as the limits that you have
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to carry well the price go down probably
there's there's some give-and-take it
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should be interesting to see how that
plays out but that's the PIP that's what
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makes it different than everybody else
we're in like Texas you can opt out of
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it and you can pick medical payments
instead in Michigan it doesn't matter
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you've got unlimited no matter what you
do the only way to lower your premiums
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on that is if you have your own medical
now if you have your own medical there's
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a piece to it you have to ask does it
coordinate and what that means is does
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it connect with your current insurance
right now we're if you get
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your car insurance pays the bill if your
medical doesn't pay the bill they have
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they have exclusions in Michigan where
they say if you get injured in a car
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accident it's not covered so you still
have to do primary pip or primary
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medical if you want to coordinate it and
they say no if you get hurt in a car
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accident we'll pick up the bill so now
you're switching those now your medical
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is the primary and that's called
coordinated medical benefits and that
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just simply means your medicals first
your car insurance a second so if you
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only have a million dollars worth of
that medical then Michigan's gonna pick
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up the difference should you coordinate
that's the important question most
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everybody if they have it there like
coordinate coordinate coordinate
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something to think about before you do
that yes it'll save you a hundred two
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hundred dollars even on your policy but
what is the deductible that you carry on
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your medical because if you have an
accident and your deductible like mine
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has been in the past which is like
$7,000 crap man I have to pay the first
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seven thousand dollars of that medical
it doesn't make sense for me to
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coordinate that with my auto because my
auto I don't pay the deductible I pay my
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car deductible if I crashed my car but I
don't pay that medical deductible so in
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most cases it makes more sense to have
that in your auto now if you're in those
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if you're always maxing out your
deductible and your car insurance
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doesn't matter absolutely or if you have
a low deductible you have a thousand
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dollars in that situation what you're
gonna do is you're gonna coordinate that
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because you're gonna save as much as you
can on that auto policy there are other
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parts of the insurance which I haven't
covered is comprehensive and collision
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those are also different it's the only
state that does this comprehensive the
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same if you hit a deer glass damage
theft vandalism all that stuff hail
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damage if you hit any animal that's all
comprehensive right whatever deductible
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you chose most people do anywhere from a
hundred to five hundred dollar
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deductible and it's not expensive to
have the collision is very very
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different
you have limited collision you have
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standard collision and then you have
broad form collision so the three
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different pieces of those you have to
pick and then a lot of times you have to
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sign off on which one you chose because
they do offer those they want to make
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sure the agents are offering those
options limited almost nobody does I
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have one person I insure out of my
entire book that actually does limited
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collision sorry it's my family member it
fit well it just works right so for this
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person if they get an accident if it's
their fault nothing's covered it's gone
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if it's not their fault they paid the
deductible and then the car is covered
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up to the value of the car it's kind of
a bad coverage just because of that but
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sometimes when the cost has to make it
work then then yes the most common one
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that I get in the most common that we do
is standard collision and what that is
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is it doesn't matter whose fault it is
it's covered minus your deductible so
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you always pay the deductible and the
reason most people do that one is
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because there's something called a mini
tort and what that does is that can let
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you go after the insured that hit you
for up to a thousand dollars so you go
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after their insurance and they'll pay up
to a thousand of that deductible back so
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it's $500 deductible you tell them
wasn't my fault you had that coverage on
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your policy which is super cheap like
two dollars they they come back and say
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okay we'll give you your five hundred
dollars back the negative to it versus
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the last coverage is the fact that you
have to pay the deductible upfront it
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might take a month it might take a
couple weeks depending on how quickly
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they pay you but you'll eventually get
that funds back the only risk that
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you're taking by doing the standard
coverage is if there is nobody to go
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after so let's say a hit and run the hit
your car took off and you're trying to
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claim that and it's a collision you
won't get that deductible back because
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there's no one to go after to get that
that mini tort taken care of that's kind
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of the only risk that I see in that
situation the last piece is going to be
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something called broad form collision
and this is what I personally carry
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honestly there's not any specific
and I carry this I would be just as
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happy with the standard collision I
think it's kind of one of those things
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I've always had it and I just don't feel
like changing it but what that does is
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if you're at fault you pay your
deductible if you're not at fault you
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don't pay anything it's waived so your
insurance pays that portion of it or
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waives that portion of it it's kind of
nice to have that just because if you do
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get in an accident and it's not your
fault you kind of feel like you're
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getting penalized when you're paying the
duck table yes will you get it back
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later most likely but it's it's like
those questions like am I gonna get it
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back am I not gonna get it back almost
every single time I've seen everybody
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get their deductible back if they deny
it then you just submit it again and
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they usually approve it what coverages
should you carry
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well Michigan the typical policy and
this is actually the coverages that I
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personally carry bodily injury 250,000
per person that's if you hurt one person
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500,000 per accident so if there's
multiple people in the car
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property damage a hundred thousand some
people do a little bit higher than that
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and do 250 thousand for property damage
so if you damage someone else's car the
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reason they do that is it's only a
couple dollars so it's like maybe five
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dollars a year more to increase that so
why not right
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you could hit a Ferrari I guess in total
it so that that's a possibility they do
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the uninsured motorist that's if someone
hits you that has no insurance that's
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250 per person 500 per accident and then
underinsured motorist which is 250 500
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the benefit to that is the same
situation if you get in a car accident
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and the medical needs to kick in and
your medical is coordinated you can
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always claim the uninsured motorist or
underinsured motorist and then if you're
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doing full coverage on a vehicle usually
$500 deductibles some people do $100 on
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comprehensive the only thing I would say
be mindful is Michigan is a no-fault
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state and so by default they don't
typically always rate the not at fault
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stuff against you but because it's
claimed against your insurance once you
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usually have two or more claims they'll
start hitting you with penalties or fees
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you'll start
using discounts because of that so just
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be mindful of that if you're gonna pick
a low deductible don't be heavy on
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filing those claims because they'll
they'll find a way to get the money back
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and then if they don't the next guy's
gonna charge you just as much it's kind
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of a lost cycle and it's one of the
reasons they're trying to fix a lot of
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this stuff we're trying to make the
rates a little bit cheaper mainly for
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Detroit but for us it's gonna do that as
well anyways guys I hope this was
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helpful if you got good advice or if you
know someone in Michigan that needs to
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get this advice definitely share it with
them I am gonna put a link in the
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description below if you do want to get
a quote from me or one of my associates
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we work with 17 different companies one
of the reasons that I have been able to
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build close to a million dollar book of
business within a two to two-and-a-half
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year time frame is because we work with
not only 17 companies is also you got to
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know what you're doing so when you work
with all these companies sure when we
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plug into the system it's probably only
gonna pull five or six of them that are
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competitive for you but sometimes you
got to remember the the husband and wife
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that owns a house versus the husband and
wife that owns a house and has a kid is
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completely different this company wants
them this company doesn't you got to
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know which where which place to put them
and sometimes you got to have that mind
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shift where you've been doing this long
enough and you know enough of these
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companies where you know oh wait a
minute these guys have this type of
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credit these guys have this type of
situation they're a perfect fit for this
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company as well that doesn't go into the
standard program so I'm gonna spend the
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extra 15-20 minutes to retype it into a
different one that I'm gonna get you
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that best rate if you do fill that out
just know that it's not gonna go to some
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random website and send you some fake
quotes and things that's gonna go
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directly to me I will either disperse it
to a co-worker or I will try to quote it
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myself
and we'll go through those companies to
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find out which is the best fit for you I
think on average we're saving about six
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hundred and some odd dollars like 670 or
680 per year that's our average for
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people that switch to us so no pressure
whichever way you go is fine I hope you
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got really good advice out of this if
you did definitely give me a thumbs up
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don't forget to subscribe and I will see
you guys in the next one
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