Be a better insurance consumer

phone insuranceThink you’re getting a good deal on your current insurance? What does a good deal mean to you? Is it all about price? Do you know what you’re paying for? What’s your exposure to financial loss? You might be taking on more risk than you think.

Are you getting a good deal on your home and auto insurance?

Most people, if asked this question, would like to think that they are...but are they? Are you? How you define “a good deal” will likely influence your answer. Many use cost as the gauge for a good deal. To be sure, cost is an important consideration when making a purchasing decision, especially when shopping for commodities—those “one-size-fits-all” goods or services that are mass produced and lack differentiation. But, auto and home insurances are not commodities. Not all insurance policies are alike, nor are the companies that offer them. And, your insurance needs are unique to you.

The true value of insurance is proper coverage, great service, and most importantly, the ability to rest easy knowing that in the event of an unforeseen loss, everything you’ve worked so hard for is protected. So why do people so often base their insurance purchasing decision purely on price?

Faster. Cheaper. Better?

Large national insurance companies have employed marketing strategies that essentially commoditize insurance. They pitch how many hundreds of dollars one can save if they switch, and they can do it for you fast. I’m sure you’ve heard this one: “Save 15% in 15 minutes!” They make it sound easier than buying a pair of shoes.

Certainly, it is easy to sell insurance solely on price. Everyone wants to save money, right? And time. We are all busy and our time is valuable. Plus, insurance is not sexy and can be intimidating because there are a lot of technical terms and jargon and many policies are written in legalese. So it’s not surprising that reducing the decision down to two factors—price and speed—would be appealing to the consumer.
 
But, think about it. You’ve just spent days, weeks, or even months before deciding on which car or house to buy. You’ve done your research to make a purchase that best fits the needs of you and your family. Yet, the decision on how to protect your biggest investments can be made in 15 minutes or less?

The result of simplifying the purchasing process diminishes the importance of your investments and puts you at risk. As an insurance professional, I consider it a disservice to you as a consumer. After all, you are buying protection for what are most likely the two largest investments of your life—your home and car—yet you are not encouraged to ask questions or provided information to help you make coverage decisions. This makes it pretty hard for you to learn exactly what you are getting for your money.

Recently, I went through the online process to get a quote/buy auto insurance at one of the popular comparison sites. I did it for the experience. Just as promised it was both easy and fast. And, the results offered up competitive rates, but it was all about price—details about what the policy covered were conspicuously absent. It took significant digging and familiarity with insurance jargon to discover what coverage limits were being offered. I was not surprised to find that the default policy reflected coverage limits far lower than I would feel comfortable recommending to most people.

Think differently to get a better deal

A purchasing decision based solely on price may save you money, but how good will you feel about saving $100 or $200 per year if you aren’t adequately covered (or covered at all) for a loss that ends up costing you far more? Unfortunately, many people don’t realize how good or bad their policy is until it’s too late.
 
Here’s the bottom line—unless you have a clear understanding of your needs and your policy, you may be taking on more financial risk than you think. You’ll be able to make better choices if you think beyond price. Cheaper does not always mean a better deal just as more expensive doesn’t necessarily mean more value. The lesson here is price means very little without considering the value: proper coverage, great service, and the ability to rest easy knowing in the event of an unforeseen loss, everything you have worked so hard for is protected.
 
Think about the last time you shopped for insurance. Was it all about price? If you are like most people, chances are you didn’t even consider another company or the value of its policy and services if the cost was even a little higher. Why? Because what prompted you to shop in the first place was price and price alone. Unfortunately, the buyer who makes decisions on price alone has already checked value at the door and, in many cases, a good deal as well.

The right balance

At Member Benefits we recognize that your time is precious and of course you want a good deal. While you won’t get a quote in 15 minutes or less and we can’t guarantee the lowest price, we promise you that the little extra time required will give you a better understanding about your insurance needs and give you confidence to make the right decision for you and your family.
 
Let a WEA Member Benefits Personal Insurance Consultant do a free review of your current home and auto insurance policies, and find out why one out of two members who receive a consultation discover a better value and switch their current insurance to WEA Property & Casualty Insurance Company.

Whether you choose us or not, you will become a better insurance consumer because of it.

Tim Ganoung Tim Ganoung, Personal Insurance Consultant

Learn more about insurance! Contact us for a free insurance consultation at 1-800-279-4010 or visit weabenefits.com/consults.

 

>> Read our blog to learn about other value-added items of importance and questions to ask when purchasing insurance.

This article is for informational purposes only and is not intended to constitute legal, financial, or tax advice. Certain recommendations or guidelines may not be appropriate for everyone. Consult your personal advisor or attorney for advice specific to your unique circumstances before taking action. Property and casualty insurance programs are underwritten by WEA Property & Casualty Insurance Company. The terms and conditions of your coverage are exclusively controlled by your written policy. Please refer to your policy for details. Certain policy exclusions and limitations may apply.

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