We hear it all to often; “Insurance is a racket and even when you need it, they won’t pay for your repairs or bills anyway”. It is fair to say that many of those complaining haven’t taken the time to understand their policy or the responsibility to create a relationship with their insurance agent. Of course there are always exceptions to every rule and unfortunately there will always be insurance companies willing do whatever it takes to keep from paying bills and some insurance agents will treat you just like a name on the list. We understand the street goes both ways.
It is important to consider the reputation, ratings and customer reviews of an insurance company before committing your hard earned dollars to a policy. Did you know Allstate earned “2015 World’s Most Ethical Company” by Ethisphere Institute? A good insurance agent can get you good coverage. A great insurance agent (Insurance Architect) will not only get you a great coverage but will ensure you fully understand what you are paying for and what you are entitled to.
Sure, signing up for and understanding the coverage will take up some of your time, however things that are worth it take time and planning. Insurance can feel like a necessary evil, but in reality it’s a more of a peace of mind umbrella because soon or later it’s going to rain.
Here are 5 myths people tell themselves in order to justify the quick and poorly built insurance policy.
I already have the cheapest coverage
It may be cheap now, but it will become expensive in the long run. If you have the minimum coverage allowed by the state sure you will save a few bucks a year. But the only way to make up for flimsy coverage is to take those “saved bucks” and invest them to ensure when you home or auto is met with disaster you have a nest egg to cover the difference your weak policy was unable to. Just remember, you don’t have to be a millionaire to be sued like one.
I don’t need rental car coverage I have 4 cars.
Do you need 4 cars? Does one car sit around all year, only to be used a few times? Wouldn’t it make more sense to sell that car and carry rental coverage on your auto policy? Or just simple rent a car if you ever find yourself in need. Also, what happens when your significant other or teenager breaks down? What if they break down a few hours away? How are they going to get home?
I switch insurance companies frequently to get the best rate.
In reality the rate algorithm also includes how long you were with your current carrier. At 24,36 and 48 months your placement in rate tiers gets better but at 70 months you will be pleasantly surprised at your rate because this bumps you up to the next tier, which means even more savings.
I don’t need life insurance. I don’t plan on dying anytime soon.
This is always one of the hardest conversations to have with clients. We see it all to often, a family member who is the main income of the family is met with a tragic accident and not only is the family faced with life without their loved one but now they must face the reality of life, bills never stop coming. Being prepared for $15 dollars a month seems pretty fair.
I’m buying the house at 225k so why is the insurance company insisting I insure it at 335k?
They just want more money, I’m sure! After doing a sales comparison of your house to others in the market, they determine the real market value of your house. We have seen as low as $68/square foot when in reality after all building supplies are purchased and labor is included, to rebuild your house from scratch would cost $130-$145/square foot. Our Insurance Architects look at what would you need in order to rebuild your house in the event of a total loss. Have you ever started a project at your home and maxed out the budget? Now imagine if you had enough money to build your house but not enough to put a roof on it. Now what do you do?
Insurance is always a touchy subject because it deals in the “what ifs” What if I get in an accident or what if I lose a loved one? These are never scenarios we like to think about, but as protectors and providers to our families it is up to us to ensure what matters most. Contact one of our Insurance Architects when you are ready to be treated like a person and not another number