Don’t Be Fooled by Low Prices

Written By Charlotte Insurance on May 23, 2019. It has 0 comments.

This April Fool’s Day you might get taken in by a prank or two, but don’t let the super low prices promised by some insurance providers fool you. When you choose the lowest price insurance coverage, the joke could be on you at the worst possible time.

Here’s what you don’t get when you chose the lowest priced insurance coverage.

Less Service 

Some discount insurance providers cut their premiums by reducing the services they provide to customers. Trying to get someone on the phone can be nearly impossible, and you might only be offered limited help based on the insurance plan you have. Instead of getting help when you need it most — when you need to file a claim — you’re left trying to figure it out or waiting on hold for hours at a time..

You get what you pay for applies to your insurance policy. You shouldn’t have to pay exorbitant prices, but paying a little more for a real person to help you is worth the added expense, especially when you’re dealing with an accident or property damage. 

Less Coverage

A bare-bones insurance policy is just that, the absolute minimum you can buy. In auto insurance, we see this with liability-only policies. For your home insurance, you might not have enough coverage to equal the true value of your home. These are both disasters waiting to happen. When you need to file a claim, but don’t have enough coverage, you’re left paying out of pocket. If you cause an auto accident and only have the state required minimum liability coverage, you could be looking at tens of thousands of dollars for medical costs and property damage, not to mention lawsuits.

Bottom line, work with an independent insurance agency like ours to figure out exactly how much insurance coverage you really need. There are other ways to lower premiums besides reducing much-needed coverage.

Unaffordable Deductibles

One way many people reduce their insurance premiums is by increasing their deductible. This is a smart way to maintain insurance coverage and save money. But if you choose a deductible that’s higher than you can possibly afford, you may not be able to pay it when you do need to file a claim. Talk to your insurance agent about your deductible options. Increasing your deductible even a small amount will save you cash without breaking the bank later.

If you need to save some cash, go ahead and raise your deductible. But make sure it’s an amount you can afford to pay in an emergency.

When you want to save money, it’s tempting to cut things you haven’t used in a long time — like your insurance coverage. But insurance is there for the moments you can’t predict. There’s nothing wrong with trying to cut your expenses, but be careful with cheap insurance rates. Cheap rates often mean coverage that does you know good at the worst possible time. You don’t want to find out later that the joke was on you! 

Ready to find smart ways to save on your insurance coverage? Contact Charlotte Insurance today!

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