Why Low Price and High Value Can Be a Contraction in Terms

Shoppers are always looking for that next big sale or deal. When it comes to purchasing a 46” HDTV, it is easy to identify all the features you want, and then shop for the best price.  In fact, many retailers might even negotiate with you to get your business. When selecting your insurance, you cannot think the same way.  Why?

• Insurance can never go on sale, it is highly regulated.
• Consumers rarely have complete information about various insurance products.
• Consumers may believe that “popular” or advertised products are high in quality.

Let me clarify that high-priced insurance does not always equate to a better value.  However, if you purchase the low-priced insurance policy are you satisfied that all the coverage terms are consistent with a higher-priced one?  A better way to look at this is to consider the value of what you are buying.  Here are some of the value-added advantages you will find in insurance if you do a little searching.

What makes up a high-value insurance program?

• An insurance policy that will respond to your risks when a loss occurs.
• The extra services offered by the insurer at no cost to you.
• The knowledge and expertise of the agent. The agent is your key to a high value advantage.  The agent is the one who helps you identify your risks and designs a policy specifically for you.  The agent will be there to help you manage a claim and to educate you.
• Your agent increases your insurance value by helping you understand why the premiums are different.

Value is more than price.
There are also non-price variables that every insurance purchaser should consider.

• The agent’s experience in your industry.  Do you want an agent who primarily only insures homes to insure your restaurant?  These risks are different and should be treated as such.
• Insurance companies have customer satisfaction ratings for claims, premium processing, and other services.  Do you want to use an insurer with a below-average claims handling rating?

The information shared in this blog is provided and written on an opinion basis and for informational purposes, they do solely represent the opinions of Valley Oaks Insurance.