Insurance: Why Saving Money Doesn't Always Mean Value
Insurance can be expensive and often times we wonder, "why am I spending so much money on something I never see a return on?"
I guess you can say that you are gambling right? But you're not. You are gambling more by cutting your premium in half when you start lowering your coverage limits.
| GAMBLE | RISK |
| Minimum Auto Limits | Your policy does not cover the claim you submitted. The driver of the vehicle you hit is partially disable. They are suing you for the damages and medical payments. You cannot pay this out of pocket. Your wages are garnished. |
| You Have Liability Only | You needed to rent a car while on vacation and declined the insurance through the rental car company. You get into an accident and are responsible for the damages. The claim now must be paid out of pocket. |
| You Made Significant Updates To Your Home | You finished your basement and kitchen. This has now increased the value of your home but $30,000. You never reported these changes to your insurance company and your house burns in a fire. While the home is covered by the fire, the payout doesn't cover the increase or the new changes. |
| You Forgo A Renter's Policy | A visitor is at your apartment and that person got injured on your steps and looks to you to cover the medical expenses. You don't have a renter's policy and therefore are responsible for paying the claim out of pocket. |
Now, these are just a few examples of where cutting corners and saving money does not add value. We could go on and on with this.
We all want to save money. Paying into insurance is like putting money into your savings account. The money is there when you need it. Insurance is a piggy bank. A rainy day fund. It's there when you have an emergency with your home or auto. Sure, it can be hard to see where the true return on investment is with this, but you see when you need it most.
I like to ask clients "imagine yourself being the driver or passenger of the other vehicle. Would you want the person who hit you to have all the right coverage in place? You don't want to be worrying about your own insurance having to cover the cost."
Don't let the dollar signs in your premium hold you back from getting the coverage you need. Contact us to start talking with someone know to get a FREE COVERAGE ANALYSIS.