Saving Money on Insurance, Or Are You?

Insurance companies are constantly finding new ways to entice potential customers to shop for insurance.  One of the latest tactics is to permit shoppers to “pick their price.”  This marketing scheme is a trap for the unwary.  Here’s why:

Nearly everyone wants to pay less for their insurance.  The less we pay them, the more we have in our own pocket.  The problem is that by setting a specific price point, one that is almost certainly less than what you currently pay, the insurance company is enticing you to focus on price rather than coverage. That is where the trick lies.  By showing you what you could save rather than an “apples to apples” comparison of coverage, many are lured into thinking that they are getting a great deal when, in reality, you are only getting a policy with lower coverage and limits.

This is particularly problematic today where many of us shop online rather than going to an insurance agent who can explain the various coverages and your personal needs.  Considerations might include the type of vehicle that you drive, your line of work, your personal estate, whether you have a family, or even your personal driving habits.

In New Hampshire, the lowest available liability coverage is $25,000.  This level of liability coverage is irresponsibly low.  Underwhelming limits like these not only endanger your personal financial well-being, but also the well-being of every other driver and passenger on the road.  We all know just how expensive medical treatment is in the modern world.  It doesn’t take much to incur medical bills alone in excess of $25,000.  When liability limits are not adequate, you will then be responsible personally for the remainder.

So, the next time you are intrigued by the thought of saving money on your insurance, do your homework and speak with someone that can explain it to you.  In the end, we will all be far better off spending a little extra on coverage and limits that adequately protect us, our families, and everyone else on the road.

By: Brenner Webb

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