You can watch all the commercials and Google all the cheap insurance you want online and you will come up with a ton of insurance company results. But the bottom line is that there really is no such thing as cheap insurance.
Cheap coverage, definitely.
And that’s really what is happening here. But, who wants to buy cheap coverage? Not me. So, they promote it as cheap insurance.
Let me explain to you about how they are able to this.
“Cheap Insurance” is no different than the promotion of a sugar-laden cereal who’s box that says “A Good Source of Vitamin D”. That’s because the Vitamin D is from the milk that is added, not so much the cereal. You will notice that on many cereal boxes that make that claim, there’s a picture of a bowl filled with milk, as well as the cereal. So, technically they aren’t lying, just being misleading.
So, with that being said, many of you have already gone online and purchased this “cheap insurance” and probably saved some money on your bill. So, how is it that there’s no such thing as cheap insurance?
Well, that’s because the “cheap insurance” policy most likely provides you with less coverage than the original more expensive one.
Here are some examples to as what may be a result of the cheaper policy in the event of an accident:
- Higher deductibles – That means more out-of–pocket expense to you
- No extra endorsements – Again, more out-of-pocket-expense to you.
- Lower limits – If it just meets the minimum requirements, that isn’t enough if you are ever sued.
- 6 month policy – That’s 6 months less coverage than the 1 year policy.
You may now notice that your “cheap insurance” could end up costing you a whole lot more than the more expensive policy if you are ever in an accident. You have less coverage, for less money. That’s missing the whole point of purchasing insurance in the first place, to cover you when you need it, right?
Well, if it’s savings you want, then you should be shopping with an independent insurance agency who has a number of carriers to do some comparative pricing. Reason being that one carrier may have more applicable discounts than another. In most cases, when you “bundle” your home and auto or “bundle” more than one auto, a company will be able to offer a multi-policy discount. If you don’t have more than one car or have your own home, you can “bundle” apartment/rental insurance and your auto.
Do you have a good driving record? That counts, too.
Every little bit adds up to greater savings, not cheaper coverage. There are so many ways that discounts can be provided, that it would be worth your time to talk to your agent and find out more.
Don’t you think that this is a much better way to save on your bill than purchasing “cheap insurance”?
I think so.
Here at Donald J. Medeiros Insurance Agency our goal is to try to help our viewers by suggesting solutions for all insurance needs. By no means can we address each reader’s specific concerns in every incident. So, we strongly advise to check with an insurance representative to address your specific needs. However, you can also contact us for any questions or concerns and we will be happy to help you. We are able to offer a complete line of personal & commercial insurance products for all of Massachusetts, Rhode Island and New Hampshire.
Come visit us at www.donmedeirosinsurance.com or give us a call at 508-678-1271. We look forward to hearing from you! If you have a Facebook account, like us at www.facebook.com/donmedeiros.