One trend that comes and goes over the years is insurance companies offering cheap plans to grow their business. However, businesses can’t afford to continue to operate on low (or negative) margins, so the customers are the ones who end up suffering. Low-cost insurance rarely ever means low cost in the long run. It seems to happen more and more, insurance companies offering lower cost insurance, but when customers go to use their benefits, the struggle begins. Insurance is an intangible product, which means one must put trust into it. So, when promises aren’t kept, or proper due diligence isn’t followed, you can see why low-cost insurance is rarely ever low-cost.
Good, quick, and cheap. It’s impossible to have all three. Often, the one that gets sacrificed unknowingly is good, as people value their time and money. Therefore, when it comes to trying to save money on insurance, one can expect to receive delayed quotes, slower service, claims issues, just to name a few. Saving time and money now, very well could cost you a lot of time and money when it comes time to use your policy.
Save Now, Pay Later
Now it’s time to get to the nitty gritty on how a low-cost insurance policy will cost you later. The main reason, those who opt for cheaper insurance end up paying more in the long run because of a lack of coverage that was unknown to them when trying to use their insurance, or even worse, no coverage at all. Picture yourself being involved in an emergency situation that ends up with you being in the hospital requiring medical attention. The last thing you want to worry about in that scenario is being on the hook for the entire hospital bill which could end up being tens of thousands, if not hundreds of thousands of dollars.
David vs. Goliath
“If I don’t receive the benefits that were in writing, I can always hire a lawyer!” While this is true, insurance companies are usually very large, so going toe to toe with one is no easy task if you have a dispute with the plan that you have purchased. Even if the consumer is completely in the right about a particular claim or situation, the costs and time involved can be substantial.
The Benefit of a Broker!
Insurance Brokers often get a bad reputation but using a reputable insurance broker can help you avoid situations like this. For one, the majority of brokers are well-versed with the ins and outs of the insurance industry and can help you avoid a negative trend that you may otherwise know nothing about. Not to mention, brokers work for you! Brokers typically operate at no extra cost to you, just as it would be if you went straight to the insurance company to get your plan. Only with a broker, you have someone else working on your behalf. If you would like to learn more details of using an insurance broker, read our previous blog, “Why You Should Use an Insurance Broker”.
Having proper insurance is important in every aspect of life. Whether you are at sea needing international coverage, looking for proper life insurance coverage, going on a vacation, etc. MHG is your specialized broker. Our insurance specialists have the knowledge and experience to find the policy that works best for you. If you are interested in purchasing, or have any, please contact us at +1 954 828 1819 or +44 (0) 1624 678668 or visit us online at mhginsurance.com.