Should You Decide On Insurance Based Only On Price?
For a lot of people in the current economy, their only focus when it comes to their insurance rate is finding a way to get that cost as low as possible. Particularly as more and more types of insurance are becoming legal obligations, a good number of people only look at the cost of an insurance plan without considering if the plan is the right one for them. However, there are plenty of other factors to consider when purchasing insurance, and it is certainly a commodity which should not be sold on price alone.
The main reason that insurance shouldn’t be sold on price alone is that, often, the less expensive the monthly premium on an insurance plan is, the more hidden costs you will run into during the year. If you take a high deductible to keep your premium low, and you get sick during that year, you’ll end up paying more for your healthcare anyway. The same can be true of car and home insurance.
Now, that isn’t to say that everyone should run out and purchase the most expensive insurance policy they can find in order to avoid surprise costs throughout the year, but it does mean that the consideration of a slightly more expensive plan could turn out to be a cost saver in the long run. The best analogy to be made is the service plan on a piece of electronic equipment. For instance, when you purchase a protection plan for your new laptop, you are effectively taking out an insurance policy on that product. When you make this decision, you have to weigh how many years you’ll use the product, if you’ll need or want it replaced if something should happen to it, and what the typical cost of repairs might be. You would compare those to the protection plan, and then make a choice if it is right for you or not. Often times, spending the extra money for additional protection is the correct decision.
It can sometimes be difficult for people to navigate exactly what kind of insurance coverage may be best for them, and as an independent insurance agent, you can help others reach those decisions. Insurance contracts can be just as confusing as any other legal agreement, and it’s important that you know the rules, laws, and contracts snide so you can help your customers get the most out of their insurance plan to protect their family and home. As an independent insurance agent, you are there to help your clients to make the best decisions for the best insurance. In order to do this, you need to make sure you are always up to date on insurance changes and laws and your certifications are valid.
To help you make sure you are up to date on all the new laws and changes in insurance, it is important to stay current on all of your certifications. For more information on Texas Insurance Continuing Education, email Insurance Classroom at [email protected] to find out more so you can be able to help your clients find the best insurance.