Cut-Rate Insurance Can Actually Cost You More

If you’re like the rest of us, you frequently receive solicitations and ads from cut-rate insurance companies promising to save you money on your auto or homeowners insurance. And, like most of us, you are being very careful with your money and looking at all your expenses in the hopes of cutting costs. However, buying cut-rate insurance may cost you much more in the long run.

Insurance is your first line of defense against life’s calamities. After a loss, you want to be able to count on a good insurance company to help you through all the problems that arise. For example, a full-service insurance company with a good reputation can:

• Provide prompt and courteous service year-round after a loss.
• Provide knowledgeable adjusters who can assist you in making important post-loss decisions.
• Locate a top-rated repair shop near your job or home to repair your damaged car.
• Promptly and conveniently provide a replacement vehicle while your car is in the shop if you purchased rental coverage.
• Pay for an alternative living space that is as similar as possible to your home if you are unable to occupy it after a loss.
• Provide a strong defense with excellent legal counsel if you are sued after a loss.
• Ensure prompt board-up services after a loss.
• Help you locate a trustworthy contractor if your home or roof is damaged.

Cut-rate insurance carriers cost less because they generally provide fewer services.

The decision to purchase insurance should go beyond price. Protection for your home and family after a loss is priceless.

Do your research and talk to people who have purchased low-cost insurance to find out if they are pleased with the claims service they have received. Chances are, they’re finding the cost of their “low-cost” insurance is far too high.