Buying insurance based solely on price is extremely risky because there are so many other factors involved when talking about a service as intimate as insurance. Is the company’s policy cheaper because they’re stingier on paying out claims? Or are they cheaper because their administrative costs are much lower? If their costs are much lower, does that mean their response time is longer? Are they harder to work with? Oftentimes we focus too much on price and not enough on the service, when it comes to insurance, service really does matter quite a bit.
Imagine a scenario in which your house burned down (don’t imagine too hard!), you’re stressed out, you’re in a bad place, and now you have to deal with your insurance company. Most insurance companies aren’t going to immediately write you a check, but how they deal with you may depend on how much they cost. That’s not to say that the more expensive plan is better, that’s no guarantee, but if a place is cheaper because they only have a couple representatives… then it’ll be much harder to reach a person.
Anyway, the moral of the story is that you need to go online, read some reviews, and figure out if the company you’re working with is really worth the price you’re paying.
One Trackback/Pingback
[...] you read reviews of your homeowner’s insurance provider? Comparing some things on price alone is fair, but with insurance companies, when you’ll be [...]
Post a Comment