Frustrated by increasing insurance costs, many people are shopping to save money on their insurance. Too often, when shopping for home and auto insurance, people focus on one thing: paying less. They call an insurance agent who is fast, friendly, and efficient. The agent gives them a quick quote, doesn’t ask too many questions, and—best of all—”saves them money.” They hang up the phone feeling good, thinking, I got a better deal!
But did they?
There are two critical things to consider when shopping for insurance:
- Paying less for insurance isn’t the same as saving money.
If the reason your insurance costs less is that it provides less coverage, you haven’t really saved money—you’ve just shifted some financial risk onto yourself. Lower insurance costs can mean higher deductibles, reduced liability limits, or missing coverage altogether. That “better deal” can create financial problems for you when you need to file a claim.
- Efficiency isn’t the same as effectiveness.
A good insurance agent should ask a lot of questions—about your home’s rebuild value, your car and perhaps it’s market value, your assets, who is living with you, and even your future plans. And that’s just for starters. If your agent rushed through the process and didn’t ask many questions, it likely wasn’t a thorough job. Insurance is about paying a competitive price for being properly protected from financial loss. A good agent asks a lot of questions to find out what being properly protected looks like for you.
A good insurance agent will take the time to understand your needs, ask questions, explain coverage, and tell stories about how insurance works in real life. This all leads to you having the right coverage, not just the lowest bill.
So, fast and cheap may not be in your best interest. Friendly always is. Take the time to have a good conversation with your friendly agent and get more involved in protecting your financial future. Then you can hang up the phone feeling good AND be properly protected!
