Cheapest vs. Best Price…WTD*?

There is a lot of data that suggests most people Google “cheapest insurance” when they are shopping around for a better rate for their current policy or for a new policy. I understand that, you definitely do not want to pay more something than you have to…but cheapest is not the best way to determine the cost of your policy, we prefer the term “best price”.

BEST PRICE$

WHAT do you mean, “best price”?! That’s the same as cheapest! Actually, it’s not…not even close. Insurance isn’t as easy as saying I need a size medium and boom we give you a price for a medium. Far from a one size fits all, your best policy is YOUR best policy, not your neighbor’s or friend’s. Every person, family or business needs are different and saying you want the cheapest policy available could spell disaster. Here’s a non-insurance example:

You could buy a $10 cooking pan that will last for about a year OR you could buy an $80 cooking pan that is guaranteed for life. The initial payout for the better pan is higher, but over the course of your cooking life that $10 pan is going to be purchased far more than eight times. And a lifetime guarantee means you will never have to buy a new pan.

lifetimefryingpan
Sure I cost more, but you and I are together for life!

It’s similar with insurance. Say you need to insure your 2010 VW Jetta that you bought for $6,000 cash and you live near the beach. You get a quote for $700/year for a state minimum liability policy from Company A; you also get a $1000/year quote from Company B that includes comprehensive coverage and higher liability coverage limits. So what happens?

Three months after you insure the vehicle, a storm comes roaring ashore and your car sustains water damage. Insurance Company A effectively tells you “too bad, you’re not covered for that”; Insurance Company B says, “under your comprehensive coverages we will pay for the repairs less your deductible.”. Company A leaves you with no car and no claim payout while Company B will pay to repair your vehicle, give you a rental allowance and an ability to keep your car. Yes, you had a slightly higher premium, but you also had a far better policy that helped to get you back in the driver’s seat without buying another car with your out-of-pocket money.

Trust me, happy clients are our bread and butter. We do not want to give you more policy than you need. That’s like wearing a belt and suspenders, complete overkill. BUT we do not want to cost you more in the long run because your coverages weren’t sufficient for your situation.

 

*WTD – what’s the diff?

1 thought on “Cheapest vs. Best Price…WTD*?

  1. It’s important to understand that you get what you pay for. As a Trusted Choice agent, we’ll shop your policy around with the many top companies we represent to find the best value.

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