Everybody loves a bargain, but buyer beware – all discount insurance is not created equal!
It’s human nature, and just plain smart, to shop around for the best prices. Just don’t confuse the lowest prices with the best values. They are, more often than not, two very different animals. And it all makes sense when you take some time to really understand what you are getting for your so-called “bargain”. For instance, buying something you don’t need at 50% off is not a bargain. On the other hand, buying something you desperately need at any discount can be a real bargain – as long as the quality is there.
What’s that? “Quality”? In insurance? Isn’t all insurance pretty much the same? Not at all, but that’s exactly what some of the “discount” providers hope you will believe.
So let’s break this down into two simple rules for smart comparison shopping:
First – Are they trying to sell you something you really don’t need? I don’t mean an upgrade from minimum coverage, because (in my own opinion) that is more of a need than most people realize. No, I am talking about additional coverage for things that do not relate to your situation. If you ever find yourself looking at pages of stuff in your policy that make you question its value, ask the question. Both you and your insurance provider will be glad you did.
Second – Be sure to compare “apples to apples”. Get a written line-by-line summary of exactly what your prospective insurance policies cover and go through the two policies side-by-side very carefully. More often than not you will find seemingly small discrepancies that put a whole new twist on the definition of “bargain”.