Many insurers try to lure you with quick quotes and lower premiums, hoping you won’t notice suddenly missing or reduced coverages.
Let’s face it, saving money is on everyone’s mind these days. But when it comes to insurance, well… you get what you pay for. Unfortunately, though, insurance can be confusing, and consumers may not fully understand exactly what they’re paying for.
Believe it or not, some insurers count on this. They lure you with quick, easy quotes, and magically lower premiums, hoping you won’t bother to read the fine print or notice the suddenly missing or reduced coverages—leaving you exposed to liabilities you may not be aware of, much less prepared for. Imagine your parachute doesn’t open because you find out only too late that the “but-it-looked-virtually-the-same” discounted display model you purchased—surprise—only works some of the time (hence the discounted price).
Reduced, Missing & Manipulated Coverages
Insurance policies are so notoriously voluminous that it can sometimes take seriously close scrutiny to fully grasp exactly what you’re signing off on—or to notice when coverages have being eliminated, reduced or manipulated. Needless to say, it’s critical to understand what you’re getting and what to look out for before, in a rush to save a few dollars, you make decisions that could cost you in the long run.
Some common, and often costly, coverage tactics to watch out for:
Roof replacement set at Actual Cash Value (vs. replacement cost)
Deductibles that are a percent of Home Value (vs. fixed amount)
Reduced (or eliminated) liability limits
Common Red Flags
Beware of insurers who…
Insist they can’t run a quote without taking your credit card first; some mega carriers have even started doing this. There should be no up front charge for getting an insurance quote.
Ask “How much do you want to pay?”
Provide quotes that are significantly lower than your current premium. These are almost always the result of reduction in coverages—a fact many insurers will conveniently gloss over in an effort to win your business. In these instances, you pay less because you’re getting less.
It may surprise you to know that some companies can’t—or simply don’t bother to—run reports up front. Instead, they provide you with too-good-to-be-true (and often inaccurate) quick quotes—only to surprise you later with premiums that are suddenly much higher, or inform you that—whoops—your policy didn’t actually go through. One client was dismayed to find this out only after cancelling her original policies—leaving her with “lapsed” coverage (a huge no-no), resulting in huge premium spikes.
Forest Insurance runs actual quotes, which take time. We go into great detail to get you the most accurate quotes from multiple companies—and stand behind them. We work with only A-rated (preferred) companies because we believe in providing the finest quality coverage—coverage that’s not only tailored to your needs, lifestyle, and financial goals, but is truly there for you when you need it.
Like most businesses, insurance companies reward you for loyalty. You may not realize the true value of perks like longevity discounts or claim forgiveness—or even notice you have them—until you’re rejected by other carriers because of a claim you had two years ago. So, be sure to weigh these factors carefully when considering any policy or company changes.
An independent agent is a valuable resource and advocate. We know all the potential scenarios, companies, coverages, and discounts—and will design coverages that provide the best protection and value, for your family.
The Bottom Line
If reducing your premium is your top priority, let us help. Talk to your Forest Insurance account manager about how we can reduce your premiums while keeping—or minimizing the impact on—the coverages that are important to you. If you’ve gotten other quotes, we’ll be happy to review, and do our best to match them. We’ll also take the time to walk you through the fine print so you know exactly what you’re getting. In the end, we not only value your business, we want to ensure you continue to get the very best coverage you can afford.
To learn more about the best fit coverage for your home, auto, life, and business—or for a complete insurance review & quote—contact the independent insurance agents at Forest Insurance at (708) 383-9000 and www.forestinsured.com.