I enjoy watching college basketball – the hustle, the plays, and the passion to win. Although I’m technically a Hoosier, I’m a big Tom Izzo fan. Watching Mrs. Michael cheer on her slow-starting Spartans has been a highlight. I’m a bit more subdued when I watch sports, at least until the insurance commercials start. That’s when I lose it – popcorn flies, drinks spill, and words slip out that might disqualify me from sainthood.
Insurance marketing drives me crazy. They get celebrities to endorse insurance companies, promising to save money. But when was the last time you heard an athlete promise better protection? The focus on saving money makes sense only if every person’s insurance needs and every insurance company are the same. But they aren’t.
These ads blur the line between saving money and paying less. Saving money means you’re getting the same (or better) coverage at a lower cost. Paying less means you’re getting less coverage, and when you file a claim, you’ll get paid less. Unfortunately, some insurance companies and agents emphasize paying less rather than saving money, convincing people it’s a smart move. If you’re confident you’ll never need to make a claim, maybe it works out. But for most people, it’s risky.
The auto insurance policy is where this happens most often. In Michigan, for example, the state’s minimum required coverage is better than nothing, but it still leaves gaps, ignoring higher coverage levels and important categories altogether. And with homeowner insurance, some eager agents might suggest insuring your home for its market value instead of the cost to rebuild. That’s great until your house burns down, and you’re left short on funds to rebuild.
It frustrates me when people make decisions without understanding the consequences, unknowingly putting themselves and their families at risk of financial hardships and a lower quality of life. It’s so important to work with an insurance agent who represents multiple companies, understands their products, and cares enough to have a good conversation about what you need to protect yourself financially on your worst day.
