Opinion: Did your first love scar you for life?

There is a saying about pizza that runs, "even when it's bad, it's good". It could also be applied to sex – assuming an adequate level of consent and protection. But occasionally some people are so scarred by their first love they take a long time to learn to trust again.

Wednesday, August 6th 2008, 9:19AM

by Russell Hutchinson

No, I haven't suddenly gone all wishy-washy on you – there is an important point about insurance: the typical consumer has such a bad first experience with insurance companies that they take a long time to learn to trust the industry again.

The insurance equivalent of the fumbling quickie around the back of the school bike sheds is consumer credit insurance. You buy a car and they add insurance onto your loan. It performs a valuable task, mainly, the protection of the lender and the increasing of the sales margin for the seller of the vehicle. All most welcome when you are flogging something from the "Under $5,000" part of the yard. The only hitch is the cover is expensive, limited and sold by someone who cares little about what it does, to someone who cares even less. The result is often a permanently prejudiced view of insurance – until they meet you.

There is stuff all you can do about this problem, except maybe, write and tell all your clients about it, and suggest to them this is why they should buy a basic little insurance package for their grown-up kids (aged 18 to 25) and tell them to always decline the consumer credit insurance offered to them.

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