Many insurance choices feel perfectly reasonable at the time they’re made — especially when they lower the monthly insurance bill. A lower insurance bill today feels like a win when the financial risk feels distant. If nothing bad happens, you wind up being rewarded for the decision and you might even tell your friends and family about it.
Until something bad does happen. When a claim is filed and you’re surprised to learn that a loss isn’t covered by the insurance company the way you expected. The reaction is usually frustration or disbelief: “I didn’t realize that wasn’t covered,” or “Why would anyone choose that?”
What’s really happening is human nature.
Our brains are wired to focus on immediate relief — like saving money today — and to push future risk out of mind. We also tend to forget the trade-offs for future risk that we’ve accepted as we whittle down our insurance bill. It’s how people make decisions in other areas of life, such as product warranties and retirement planning.
Insurance is where we trade a certain cost today (our insurance payment) for protection from the much higher costs of something bad that might happen tomorrow (where we file a claim against our insurance policy). This is where a good conversation with an experienced insurance agent matters. This is what a good conversation about a reduction in insurance coverage looks like:
“Here’s what you’re saving today, and here’s what you’re choosing to pay if something bad happens. A while back, someone made a similar decision and here’s how that worked out for them… Knowing that, does this still feel right for you?”
A good insurance conversation with your insurance agent might involve swapping stories about grandkids, sharing recipes, etc. But it certainly ends with you feeling heard, taken care of, and more confident about your price and coverage. Ask what you’re trading away when coverage is reduced. Share what scenarios worry you most. And make sure the choices you’ve made still feel intentional. If your agent can’t discuss this with you, it’s time for a new agent.
