IS IT OK TO COMPARE INSURANCE POLICIES ON PRICE?

The purpose of insurance is to remove the risk of the financial consequences of suffering in certain events. Financially, you know that you can afford to pay a small amount each year as a ‘just in case’ measure. You might not ever need to claim, but you can feel more assured that if something goes wrong, it is there to help.

At the time of purchasing your insurance policy, you need to know when you can or cannot make a claim against the policy.

If you do it yourself you may spend a lot of time comparing prices, but how much time do you spend comparing and reviewing the features of an insurance policy. At a minimum, you should dedicate time to simply reviewing your insurer to determine their attitude towards making payments.

In instances where insurance isn’t a simple matter for you, you might engage the services of a licensed insurance broker. They can explain the reason why a company may be cheaper than another, but why the other company could be better for your individual circumstances.

In essence, insurance should never be about simply looking for the cheapest price. Review the features of policies, investigate whether it is worth it for your situation. It all comes down to how high is the probability of your insurance company paying you out when you need it.

So next time you are thinking about reviewing your insurance, don’t just look for the cheapest price. Think seriously about whether you should use the services of a specialist adviser.