Insurance advertisements often claim that those on their policies saved money. It might make you wonder about your own insurance policy. Why is this insurance company cheaper than mine? Does this mean that my insurance company makes a lot more money?
It all comes down to how much money your insurance company pays out.
The cheapest insurance is, of course, no insurance at all. In many cases, this will not cause any financial losses at all. But that’s not the point of insurance, which is bought in case an incident occurs.
The purpose of insurance is to remove the risk of the financial consequences of suffering in certain events. If your insured car is written off (for example), you know that there is a way to replace the car or ease the financial burden of replacing it. Financially, you know that you can afford to pay a small amount each year as a ‘just in case’ measure. You may not have to use that money, but you can feel more assured that if something goes wrong, it is there to help.
At the time of buying your insurance policy, you need to know when you can or can’t make a claim against the policy. You may spend a lot of time comparing prices, but how much time do you spend comparing and reviewing the features of an insurance policy. At a minimum, you should dedicate time to simply reviewing your insurer to determine their attitude towards making payments.
In instances where insurance isn’t a simple matter for you, you might engage the services of a licensed insurance broker. They can explain the reason why a company may be cheaper than another, but why the other company could be better for you. Whether this advice is to do with life insurance or general insurance, you need to make sure that they are licensed advisers.
In essence, insurance should never be about simply looking for the cheapest price. Review the features of policies, investigate whether it is worth it for your situation, and think about whether you could benefit from using the services of a licensed insurance broker.
So next time you are thinking about insurance, don’t just look for the cheapest price. Think seriously about whether you should use the services of a licensed insurance broker.
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