When asked the question about insurance cost, the immediate thing that comes to the minds of people is good value insurance is expensive and cheap insurance is just that, cheap. This misconception could not be further from the truth. To better understand the meaning of both let’s look at what cheap insurance is.
Cheap insurance is without a doubt inexpensive. It is price focused and price driven. 90% of the commercials we see on TV are based on saving you money and time. I personally do agree with inexpensive insurance. Why should a person pay more for the same thing? They should not, so where cheap insurance gets it right is with the basis of low costing insurance. That is the only thing they get right. Where cheap insurance gets it all wrong is that price is what matters. Since price is the focus, the actual person being insured is a mere afterthought.
Good value in respect to insurance focuses on not only price, but also what the person actually needs on their policy. Value insurance explains to the insured what potential exposures they have in their life and how it can be mitigated. It is a “finger print” analysis of that particular person for that particular risk. To assume this is a good policy because it is inexpensive is not only wrong; it is dangerous.
Good value also provides you with an advocate during a claim. Claims can be very traumatic and without someone navigating you through the process, it can be confusing and draining on a person. You need someone to help you through that. You do not know the ins and outs of insurance and nor should you, that is where the advocate comes in. It would not be wise for you to attempt to navigate the legal system without a lawyer so why would you try to navigate a claim without an insurance advocate.
Interestingly enough when it is all said and done Good value insurance will cost you far less then cheap insurance. It could save you far more than a few dollars each month on your bill, it could save you your house, your retirement and even your paycheck. When you’re shopping for insurance make sure you’re shopping value not price.