The majority of people will do everything that they can to save money. While we agree that some things are worth it, like saving money on your groceries, utilities, or other necessities, there are times when cheaper isn’t always better. Of course, nobody wants to overpay for insurance or feel like they are being cheated by their insurance company but cheap insurance isn't necessarily good insurance. More often than not, cheap insurance is bad insurance.
You Could be Stuck with a High Deductible
You are responsible for paying the deductible before your insurance pays anything for a claim. You may be looking at spending several thousands of dollars out of pocket before your insurance covers anything. Deductibles can vary by policy type, coverage level, and other factors. Instead of choosing a cheaper policy, you may want to consider one that will require less of a deductible.
Cheap Insurance Might Not Cover Enough
Many states and banks (lenders) have minimums when it comes to how much insurance you are required to have. Unfortunately, that may not be enough to fix your car or home in its entirety. Cheap policies often provide minimal coverage, leaving you vulnerable in case of claims or damage. Insufficient coverage may result in out-of-pocket expenses and could cost you tens of thousands of dollars.
You May End up Fighting for Coverage
Cheap insurance can backfire if the coverage is low quality. Not having enough coverage could leave people paying out of pocket. The coverage might not be comprehensive enough or the insurer may not handle claims as effectively. Just because you pay for an insurance policy doesn't mean the company is going to pay for every claim you submit.
Some insurers keep prices low by hiring a limited number of agents or a limited number of adjusters, so they might not have someone available to provide quick assistance with policy questions.
Other insurers may charge low premiums, but when claims happen, they might deny legitimate claims or lowball their policyholders and offer them far less money than their car or home is worth.
Summation
Dealing with these problems when coping with the aftermath of a claim could be frightening, disheartening, and even life changing. Bad insurance could put people out a lot more money than if they'd just paid a little extra to get covered by a more reliable insurer.
While price should be one factor in deciding which company to choose, don't just opt for cheap insurance at the expense of quality or coverage - otherwise this decision could be a major source of regret in the future.
If you want to discuss options for quality, affordable insurance, please call us at 631-682-1286 or request a quote online.
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