If something is cheap, there’s usually a reason for it. This is all too often true in the insurance industry as well. Insurance is hard to understand and coverages can vary greatly from policy to policy, so often price is the easiest thing for consumers to understand and pick their carrier by.
Price is also important to me, especially in todays uncertain economy. Although I would argue that you can get good insurance for a reasonable price. It probably won’t be the cheapest quote you get. I advise people to interview their Agent and get a feel for what kind of person they are. Ask them some questions like:
1. Can you tell me about the a time when your product really helped someone?
2. Have you ever had someone have something bad happen that you weren’t able to help them with?
These open ended questions will help you to uncover how strongly the Agent believes in what they are selling. An experienced Agent knows that insurance is not an intangible product. They know that selling the proper coverages will help people through some of the worst times in their lives. They’ll also help their clients to cut costs by doing things like raising deductibles and putting the savings into some sort of emergency fund.
Price is only an issue up until the time you have a claim. When you have a claim, you want to know that all the money you’ve shelled out over the years has bought you something that will take care of you. If you’re buying the cheapest thing out there, there’s a strong possibility that won’t be the case.
