Why does Geico ask me not to reveal the limits of my liability coverage in case of a car accident?
I read on my "Evidence of Liability Insurance card" issued by Geico in California, US:
What to do at the time of an accident: […] Do not reveal the limits of your liability coverage to anyone.
Why does Geico ask me not to reveal the limits of my liability coverage in case of a car accident, and should I follow that advice?
united-states car insurance car-insurance liability
asked 2 hours ago
Franck Dernoncourt
1,68521944
add a comment |
I read on my "Evidence of Liability Insurance card" issued by Geico in California, US:
What to do at the time of an accident: […] Do not reveal the limits of your liability coverage to anyone.
Why does Geico ask me not to reveal the limits of my liability coverage in case of a car accident, and should I follow that advice?
united-states car insurance car-insurance liability
asked 2 hours ago
Franck Dernoncourt
1,68521944
This should belong in Law, it has to do with the tactics of the legal process and lawyering.
– user71659
2 hours ago
@user71659 thanks, I wasn't sure which website was the most suitable for this question, I am okay with migrating the question of there if that's on topic on law.se
– Franck Dernoncourt
2 hours ago
add a comment |
I read on my "Evidence of Liability Insurance card" issued by Geico in California, US:
What to do at the time of an accident: […] Do not reveal the limits of your liability coverage to anyone.
Why does Geico ask me not to reveal the limits of my liability coverage in case of a car accident, and should I follow that advice?
united-states car insurance car-insurance liability
asked 2 hours ago
Franck Dernoncourt
1,68521944
I read on my "Evidence of Liability Insurance card" issued by Geico in California, US:
What to do at the time of an accident: […] Do not reveal the limits of your liability coverage to anyone.
Why does Geico ask me not to reveal the limits of my liability coverage in case of a car accident, and should I follow that advice?
united-states car insurance car-insurance liability
united-states car insurance car-insurance liability
asked 2 hours ago
Franck Dernoncourt
1,68521944
asked 2 hours ago
Franck Dernoncourt
1,68521944
edited 40 mins ago
asked 2 hours ago
Franck Dernoncourt
1,68521944
asked 2 hours ago
Franck Dernoncourt
1,68521944
asked 2 hours ago
Franck Dernoncourt
1,68521944
1,68521944
This should belong in Law, it has to do with the tactics of the legal process and lawyering.
– user71659
2 hours ago
@user71659 thanks, I wasn't sure which website was the most suitable for this question, I am okay with migrating the question of there if that's on topic on law.se
– Franck Dernoncourt
2 hours ago
add a comment |
This should belong in Law, it has to do with the tactics of the legal process and lawyering.
– user71659
2 hours ago
@user71659 thanks, I wasn't sure which website was the most suitable for this question, I am okay with migrating the question of there if that's on topic on law.se
– Franck Dernoncourt
2 hours ago
This should belong in Law, it has to do with the tactics of the legal process and lawyering.
– user71659
2 hours ago
This should belong in Law, it has to do with the tactics of the legal process and lawyering.
– user71659
2 hours ago
@user71659 thanks, I wasn't sure which website was the most suitable for this question, I am okay with migrating the question of there if that's on topic on law.se
– Franck Dernoncourt
2 hours ago
@user71659 thanks, I wasn't sure which website was the most suitable for this question, I am okay with migrating the question of there if that's on topic on law.se
– Franck Dernoncourt
2 hours ago
add a comment |
2 Answers
2
active
oldest
votes
Negotiation 101, never be the first to say a number.
You tell them you have a $300,000 limit and magically they incur $300,000 of injury. Alternatively, they may just assume you carry the minimum.
answered 2 hours ago
quid
34.5k565117
1
If you actually do have the minimum, could it hurt you to say that? Also, with a high limit, who is likely to fudge the severity of the injury -- the plaintiff, their doctor, or both? Aren't they taking a huge risk that if the suit fails (the insurance company successfully defends itself against the falsely inflated injury claim), they'll be deep in medical debt (plaintiff) or not get paid for their services (doctor)?
– nanoman
1 hour ago
add a comment |
I disagree with the given answer. First, in negotiations, it's often advantageous to state your number first. Doing so takes advantage of a cognitive bias called anchoring. If you're able to (credibly) state your preferred price (or salary) or whatever first, you'll anchor negotiations around that preferred price of yours.
As well, doctors, lawyers, whoever else, are not going to let you "fudge" your injuries up to a certain amount. I mean, they might at the margins, but the threat of insurance fraud likely tamps down on that. Arguably, you might choose more premium services when possible (for repairs or hospitals, for example), but that isn't going to magically get you up to the highest amount.
Realistically, this is about settlements. If the other party has claims they have incurred, lets say, $100,000 in damages, your company may try to settle for less than $100,000. If the counterparty knows that you are, in fact, covered up to $300,000, they may refuse, claiming they should get the full $100,000 they ask for. If, however, the other party doesn't have that knowledge, the settlement offer might seem credibly capped by a coverage amount, and Geico would pay less than it otherwise might.
answered 8 mins ago
Guest5
1,049410
add a comment |
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2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
Negotiation 101, never be the first to say a number.
You tell them you have a $300,000 limit and magically they incur $300,000 of injury. Alternatively, they may just assume you carry the minimum.
answered 2 hours ago
quid
34.5k565117
1
If you actually do have the minimum, could it hurt you to say that? Also, with a high limit, who is likely to fudge the severity of the injury -- the plaintiff, their doctor, or both? Aren't they taking a huge risk that if the suit fails (the insurance company successfully defends itself against the falsely inflated injury claim), they'll be deep in medical debt (plaintiff) or not get paid for their services (doctor)?
– nanoman
1 hour ago
add a comment |
Negotiation 101, never be the first to say a number.
You tell them you have a $300,000 limit and magically they incur $300,000 of injury. Alternatively, they may just assume you carry the minimum.
answered 2 hours ago
quid
34.5k565117
1
If you actually do have the minimum, could it hurt you to say that? Also, with a high limit, who is likely to fudge the severity of the injury -- the plaintiff, their doctor, or both? Aren't they taking a huge risk that if the suit fails (the insurance company successfully defends itself against the falsely inflated injury claim), they'll be deep in medical debt (plaintiff) or not get paid for their services (doctor)?
– nanoman
1 hour ago
add a comment |
Negotiation 101, never be the first to say a number.
You tell them you have a $300,000 limit and magically they incur $300,000 of injury. Alternatively, they may just assume you carry the minimum.
answered 2 hours ago
quid
34.5k565117
Negotiation 101, never be the first to say a number.
You tell them you have a $300,000 limit and magically they incur $300,000 of injury. Alternatively, they may just assume you carry the minimum.
answered 2 hours ago
quid
34.5k565117
answered 2 hours ago
quid
34.5k565117
answered 2 hours ago
quid
34.5k565117
answered 2 hours ago
quid
34.5k565117
34.5k565117
1
If you actually do have the minimum, could it hurt you to say that? Also, with a high limit, who is likely to fudge the severity of the injury -- the plaintiff, their doctor, or both? Aren't they taking a huge risk that if the suit fails (the insurance company successfully defends itself against the falsely inflated injury claim), they'll be deep in medical debt (plaintiff) or not get paid for their services (doctor)?
– nanoman
1 hour ago
add a comment |
1
If you actually do have the minimum, could it hurt you to say that? Also, with a high limit, who is likely to fudge the severity of the injury -- the plaintiff, their doctor, or both? Aren't they taking a huge risk that if the suit fails (the insurance company successfully defends itself against the falsely inflated injury claim), they'll be deep in medical debt (plaintiff) or not get paid for their services (doctor)?
– nanoman
1 hour ago
1
1
If you actually do have the minimum, could it hurt you to say that? Also, with a high limit, who is likely to fudge the severity of the injury -- the plaintiff, their doctor, or both? Aren't they taking a huge risk that if the suit fails (the insurance company successfully defends itself against the falsely inflated injury claim), they'll be deep in medical debt (plaintiff) or not get paid for their services (doctor)?
– nanoman
1 hour ago
If you actually do have the minimum, could it hurt you to say that? Also, with a high limit, who is likely to fudge the severity of the injury -- the plaintiff, their doctor, or both? Aren't they taking a huge risk that if the suit fails (the insurance company successfully defends itself against the falsely inflated injury claim), they'll be deep in medical debt (plaintiff) or not get paid for their services (doctor)?
– nanoman
1 hour ago
add a comment |
I disagree with the given answer. First, in negotiations, it's often advantageous to state your number first. Doing so takes advantage of a cognitive bias called anchoring. If you're able to (credibly) state your preferred price (or salary) or whatever first, you'll anchor negotiations around that preferred price of yours.
As well, doctors, lawyers, whoever else, are not going to let you "fudge" your injuries up to a certain amount. I mean, they might at the margins, but the threat of insurance fraud likely tamps down on that. Arguably, you might choose more premium services when possible (for repairs or hospitals, for example), but that isn't going to magically get you up to the highest amount.
Realistically, this is about settlements. If the other party has claims they have incurred, lets say, $100,000 in damages, your company may try to settle for less than $100,000. If the counterparty knows that you are, in fact, covered up to $300,000, they may refuse, claiming they should get the full $100,000 they ask for. If, however, the other party doesn't have that knowledge, the settlement offer might seem credibly capped by a coverage amount, and Geico would pay less than it otherwise might.
answered 8 mins ago
Guest5
1,049410
add a comment |
I disagree with the given answer. First, in negotiations, it's often advantageous to state your number first. Doing so takes advantage of a cognitive bias called anchoring. If you're able to (credibly) state your preferred price (or salary) or whatever first, you'll anchor negotiations around that preferred price of yours.
As well, doctors, lawyers, whoever else, are not going to let you "fudge" your injuries up to a certain amount. I mean, they might at the margins, but the threat of insurance fraud likely tamps down on that. Arguably, you might choose more premium services when possible (for repairs or hospitals, for example), but that isn't going to magically get you up to the highest amount.
Realistically, this is about settlements. If the other party has claims they have incurred, lets say, $100,000 in damages, your company may try to settle for less than $100,000. If the counterparty knows that you are, in fact, covered up to $300,000, they may refuse, claiming they should get the full $100,000 they ask for. If, however, the other party doesn't have that knowledge, the settlement offer might seem credibly capped by a coverage amount, and Geico would pay less than it otherwise might.
answered 8 mins ago
Guest5
1,049410
add a comment |
I disagree with the given answer. First, in negotiations, it's often advantageous to state your number first. Doing so takes advantage of a cognitive bias called anchoring. If you're able to (credibly) state your preferred price (or salary) or whatever first, you'll anchor negotiations around that preferred price of yours.
As well, doctors, lawyers, whoever else, are not going to let you "fudge" your injuries up to a certain amount. I mean, they might at the margins, but the threat of insurance fraud likely tamps down on that. Arguably, you might choose more premium services when possible (for repairs or hospitals, for example), but that isn't going to magically get you up to the highest amount.
Realistically, this is about settlements. If the other party has claims they have incurred, lets say, $100,000 in damages, your company may try to settle for less than $100,000. If the counterparty knows that you are, in fact, covered up to $300,000, they may refuse, claiming they should get the full $100,000 they ask for. If, however, the other party doesn't have that knowledge, the settlement offer might seem credibly capped by a coverage amount, and Geico would pay less than it otherwise might.
answered 8 mins ago
Guest5
1,049410
I disagree with the given answer. First, in negotiations, it's often advantageous to state your number first. Doing so takes advantage of a cognitive bias called anchoring. If you're able to (credibly) state your preferred price (or salary) or whatever first, you'll anchor negotiations around that preferred price of yours.
As well, doctors, lawyers, whoever else, are not going to let you "fudge" your injuries up to a certain amount. I mean, they might at the margins, but the threat of insurance fraud likely tamps down on that. Arguably, you might choose more premium services when possible (for repairs or hospitals, for example), but that isn't going to magically get you up to the highest amount.
Realistically, this is about settlements. If the other party has claims they have incurred, lets say, $100,000 in damages, your company may try to settle for less than $100,000. If the counterparty knows that you are, in fact, covered up to $300,000, they may refuse, claiming they should get the full $100,000 they ask for. If, however, the other party doesn't have that knowledge, the settlement offer might seem credibly capped by a coverage amount, and Geico would pay less than it otherwise might.
answered 8 mins ago
Guest5
1,049410
answered 8 mins ago
Guest5
1,049410
answered 8 mins ago
Guest5
1,049410
answered 8 mins ago
Guest5
1,049410
1,049410
add a comment |
add a comment |
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This should belong in Law, it has to do with the tactics of the legal process and lawyering.
– user71659
2 hours ago
@user71659 thanks, I wasn't sure which website was the most suitable for this question, I am okay with migrating the question of there if that's on topic on law.se
– Franck Dernoncourt
2 hours ago