Cheaper Isn't Always Better

Want cheaper insurance? You are not alone.

One of the biggest reasons people shop around for different insurance is because they are looking for a better rate. Nobody wants to overpay for insurance or feel like they are being cheated by their insurance company.

People have a lot of different motivations for seeking a better rate—maybe their current company keeps increasing the rates each year; or they pay a lot more than their neighbor; or their rates are increasing even though they’ve never filed a claim. The list goes on.

On top of that, consumers are seeing ad after ad telling them company XYZ could save them so much money on their premium. It is no wonder consumers are shopping for a lower rate.

But we are forgetting one simple truth that is so important in the insurance buying process:

Cheaper insurance is NOT always better, and what’s cheapest is not always best.

Now, we don’t want to diminish the role price plays when you are buying insurance. Shopping around periodically to compare prices is a great idea. However, it’s important to remember not to skimp on coverage or use an insurance company you don’t know or trust.

Here are three items to consider when shopping for insurance:

1. The type of coverage

There are several questions you should ask when it comes to insurance coverage, such as:

• Do you have the right coverage?
• Do you know what coverage you need?
• Do you have enough liability coverage?
• Do you run a business from your home?
• Do you have any farm animals?
• Do you know what coverage options are available?

As you may expect, every situation is different. A good agent will help you navigate your particular risks and make sure you have the right coverage for your needs.

2. The insurance company

Choose a company that is stable, has been around for a while and has a good financial rating. You want a company with great claims service and superior all-around customer service.

If you decide to work with an insurance company that is not willing (or able) to step up and pay when claim time comes, then that policy is not worth any amount of savings on your premium.

Let’s not forget the specific insurance agent you choose as well. A good agent or agency will focus on customer service and will offer recommendations for reputable companies with which to do business.

3. The right price

If you don’t have the right coverage, or you are not working with a dependable insurance company, then it doesn’t matter how cheap your policy is—at the end of the day, your insurance must provide the service and financial protection you need if you file a claim.

The best insurance policy for you is one that provides the most value by combining all three considerations—the right coverage with a great company at a competitive price.

For more information or to get a quote, visit Mountain America Insurance Services.