Truth be told, there is no magic formula for the lowest rates. No secret discounts or special accommodations. No one company offers the biggest savings.
If you really could save money every time your switched carriers, you’d just switch insurance providers until you were paying nothing.
The reality is that insurance pricing is a based on an algorithm that factors in hundreds of variables. The difference in rate from company to company is how one particular company reacts to those factors.
What insurance is and why it’s important has been lost in the current age of gimmicky advertising and race-to-the bottom pricing.
The big box shops, State Farm, Geico, and Esurance have marketed cheap insurance products to the American consumer–persuading us into believing that all insurance is the same so cost is the determining factor.
Companies advertising low rates and big discounts bring this type of cheap insurance to you, and they spend billions to communicate that message.
The hope is that the customer shops on price instead of learning about coverage. Encouraging people to blindly plug in numbers and pray for a low cost.
Failing to mention that they are purchasing a product that could save them from financial ruin. Protect the life they’ve built for themselves and their family.
So the question becomes, why do companies say they have the best rates and biggest discounts?
At the end of the day the two biggest factors that should be weighed when choosing an insurance company. For one, is the insurance providers financial stability and their claims handling. This will tell you if you are with a carrier who is going to fight to deny your claim. Or if you are with a carrier who comes with a checkbook ready to get you back to normal.
There is a difference even if the coverage limits are the same. This is why price cannot be the primary focus. A low rate means nothing if you cannot access good coverage.
The scary part is what happens when someone who went rate shopping has a claim.
During the claims processing time, what people fail to realize, is if their claim is denied or there is not enough coverage in place, that person is liable for every cent.
This means you can lose everything, property, savings, and liens on future earnings. Anything and everything to get the claim paid.
A simple auto or home accident can financially devastate anyone, and it happens every day.
At The Insurance Loft we secure coverage for our individual customers that meets their needs. Speak with one of our consultants today for an insurance evaluation.