Insurance: Is Cheaper Always Better?

Nathan Brown  -  Oct 13, 2020  -  Comments Off on Insurance: Is Cheaper Always Better?

You regularly see adverts from insurance companies about “low, low rates” and how premiums are better, cheaper etc, however, whilst it may be possible to obtain cover that is cheap, it may not always be the best insurance for you as the cover businesses need can vary wildly.

Whilst saving money may be a strong draw for many of us, doing this on your insurance is not always the best thing to do, as when the time comes to need to fall back on your policy you could find yourself falling short.

Here are a couple of common things that a super cheap insurance policy could leave you with and end up costing you more in the long run:

  • Less coverage
  • Less peace-of-mind
  • Rates may rise

Cheap Could Leave You With Less Coverage

Particularly with what has happened over the past few months, the value of having a good insurance policy in place should be evident.

If you choose a cheap insurance plan that does not cover you for the situation you find yourself in you will not only realise that you need to pay out, but also that the premiums you have been paying have been for no reason!

With this in mind, a cheap policy could end up being more expensive than a policy that is right for you!

Cheap Gives You Less Peace Of Mind

Insurance should always give you confidence as you will know that you are taken care of in any situation. However, cheap policies with less coverage tend to leave you more exposed.

This means that when an incident gives rise to a claim, you could end up footing an expensive bill!

Rates May Rise

Insurance policy rates change and cheap rates have nowhere but up to go! A cheap policy may only be that for an introductory period and then you could find that after a year, your rates will go up and you will be stuck with less coverage.

Low rates also change due to things such as usage and increased risk. Therefore, your car insurance policy could get more expensive if you get a speeding ticket, for example. A more comprehensive policy could cost a little more, however it may offer a fixed rate, which do not change.

What is clear, however, is that the disadvantages of a cheap insurance policy by far outweigh the advantages! Rather than thinking ‘what’s the cheapest policy I can get’, you ought to be thinking ‘what is the right policy for me’.

That’s where we can help. Our team is trained to make sure you have the right policy in place and would be happy to provide you advice and guidance as you need it.

Comments are closed.

Website by High Profile Ltd