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Life can be expensive, so sometimes cheaper is better for us. We will hunt the aisles at the grocery store to find the best deals. Some of us will perfect our coupon game and save all kinds of money in person and online. We will go to a certain gas station because they have reward points that save us on gas, will pick up a pizza to get around the delivery charge, will hit up the thrift shops instead of the mall, and enjoy that extra money in our bank account at the end of the week because of it. These are all great ways to save money without much compromise. There are some things, however, that you shouldn’t go cheap on. Insurance falls under the list of things you don’t try to go cheap on because it can cost you dearly later on.
It should be noted that cheap and affordable are two different things. Cheap means paying less where as affordable means paying an amount you can afford. You should definitely seek out affordable insurance plans, just don’t settle for cheap insurance plans just because they are cheap. This holds true for all kinds of insurance. From auto insurance to home insurance to motorcycle insurance. There are minimum amounts of insurance you need for certain areas. For example, you need at least $10,000 PIP (Personal Injury Protection) and $10,000 in PDL (Property Damage Liability) in auto insurance. While that makes you legally able to own and operate a motor vehicle, that $10,000 can be used up quickly, leaving you to pay the rest on your own. To learn more about this topic, check out our article The Truth About Auto Insurance.
Other forms of insurance have their own problems that arise when you go for the cheapest plans possible. The main difference between the cheapest plan and a functional plan is:
Cheapest: You pay less each month, but pay hundreds if not thousands more when you need the insurance.
Functional: You pay more each month, but pay less or nothing at all when you need the insurance.
Of course, it is easy to go for the cheapest plan because insurance can be a confusing ordeal. If we did not define the terms, you might not know what PIP or PDL mean. You might also not know what Actual Cash Value and Replacement Cost means. If you don’t read carefully, you might not even know what your plan actually covers. While even the most basic insurance plan will cover something, you might find yourself in a situation that it doesn’t take care of. You can argue that your insurance should cover it, but if it is outlined in the agreement you signed there won’t be much you can do. This is why you shouldn’t just read what you sign, you need to understand it too.
A good insurance provider will make sure you know everything it covers and what it doesn’t when it comes time to sign. They go over the paperwork, make a point to warn you about anything that might not be covered, and make sure you leave the office knowing exactly what it is you are paying for. An Insurance Provider that offers Auto Insurance, Life Insurance, Boat Insurance, and Motorcycle Insurance like O’Quinn will be there when you sign, and when you need them. Contact our office anytime to learn more about our insurance plans, or to ask questions about your own plan. We are always happy to help.