When people offer advice, most of the time they’re looking to help you out. They’re hoping to offer some age-old wisdom or insight that steered them in the right direction during a difficult time. Unfortunately, not all advice comes from a place of truth, rather, it comes from personal experience. To the advice receiver’s detriment, listening to someone else’s experience may be their downfall.
Insurance is not something that we can merely take our neighbor’s advice on. It requires exploring options, comparing quotes, and finding an agent who is going to work hard for you. Over the years, we’ve heard several “reasons” why insurance is a bad idea or investment. That’s why we thought we’d take this opportunity to talk about some of the risks when insurance is non existent or not sufficient.
You Don’t Need It
People make assumptions. If the sky is covered in dark clouds, you assume that it might rain. If someone has dark circles under their eyes when they come into work after their wife just had a baby, you assume that their newborn kept them up all night. We take clues from our previous knowledge and from environmental cues to come up with a story that explains what’s before our eyes.
Assumptions and expectations aren’t inherently bad, but they do come at a cost. When we make assumptions in our lives – and unfortunately, in our approach to insurance – we’re crippling any chance we had at reestablishing ourselves following a disaster or loss.
One example that’s caught our clients off guard on more than one occasion is the assumption that a landlord’s insurance will cover you should something happen to the complex. We cannot stress this enough: in most cases, you have no coverage under your landlord. Your apartment and its contents are solely your responsibility. Other cases, like when students go off to college, are filed after a dorm break in, flooding, or fire. Many families assume that things like dorms and apartments will be covered under the parents’ homeowner policy. Depending on your specific plan, that may not be true. Sadly, many people learn that hard truth after it’s too late.
Ask yourself this question: if something were to happen to your home, car, or, worst of all, you or your family, what would happen next? Would you be able to pay for the damages? Would your loved ones be stuck with your expenses and debts?
We know these questions are hard ones to think about and to answer, but they all can help you see the same conclusion – there aren’t many cases where insurance is unnecessary. Be careful not to assume or be too caught up in the moment to think that getting insurance coverage isn’t your responsibility.
Cheapest is Best
We strive to find our clients the right coverage at the best price, but all too often people get caught up in the price tag alone. The obsessive emphasis on cost may benefit in the short run, but lower costs can be a sign that coverage options and customer service have been cut out of the picture.
Take car insurance for example. When you opt-in to a plan that we’ll call “cheap,” the trade-off usually comes in the forms of poor coverage and high deductibles. Suppose you get into an accident and you have liability insurance, and you just plowed into the back of a Chevy Impala. In this scenario, your insurance will cover the damages to the Impala you hit. Your vehicle, however, will be an out of pocket cost to you. But hey, the insurance payments were cheap!
Don’t be fooled by the price tag. Ask questions and do your homework because, ultimately, you are the one who will be left to deal with the plan’s ability to cover your needs.
All Insurance Companies Are The Same
Not all insurance companies can offer you the same rates and coverage options. Direct writers, for example, often trade quality customer service for going paperless, relying on the internet and call centers to relay information.
Captive agents, in comparison, work for one insurance company and are only able to sell policies through that insurer. Finally, there are independent agents, who can sell policies from multiple insurance companies. Independent agents have the flexibility to shop for coverage plans, which gives clients the advantage of getting a plan that is more personalized to their specific needs.
As an independent insurance agency, we’re here find the best option for your needs. Since 1958, Doyle & Ogden has been faithfully providing customers with the service they deserve and the coverage they require at the best price. Have questions about your policy or are you looking for something new? You can start exploring what plans are out there for you by calling our office at 616-949-9000 or by requesting a free insurance quote online today!