Price Versus Value
It happens all the time. People shop for insurance based on price alone, yet they research the best value before they buy many other commodities throughout the year. As consumers people are always looking for the best deal. People don’t buy the junkiest car, shop at the worst grocery store, or sign up for a cell phone plan with the worst reception coverage just because it has the cheapest price. They research these items before purchasing to get the best car, cell phone plan, etc. for the money. Buying the cheapest product based on price alone, you end up paying more in the end for buying an inferior product. It is funny to me that people shop so much more smartly nowadays with most of their purchases, yet do not put that same effort into choosing their insurance policies. Consumers are drawn to and mesmerized by the promises made by FICTICIOUS characters. This makes me think of the Pied Piper leading the masses of children away from Hamelin. Why is this when value is clearly something the American people are screaming for. Do a Google search for “value versus price” and you will find many articles written over the years by pretty prestigious entities such as Forbes magazine, which ponder this very topic.
Disasters, emergencies and tragedies seem to be a common catalyst for people taking action. If a loved one dies in an accident involving a drunk driver, they may become passionate about raising awareness about the dangers of drinking and driving. If a loved one dies and did not have adequate life insurance to cover final expenses, their family may take the time to evaluate their own remaining coverage to be sure they don’t fall in that situation again. When someone is involved in a car accident and seriously injures or kills someone, but had reduced their coverage to save some money and are now responsible for the expenses related to that accident, they may increase their coverage the next time their renewal comes up.
Look at the Manufacturing industry for example. Manufacturing has been outsourced to third world countries. Why? Because it is cheaper, not because it is more cost effective and there is a difference! Clothes from certain superstores that sell everything from food to medications to clothing sell items made in these places. I no longer purchase them because they fall apart in record time and end up costing me more money. I did when my children were small and nearly outgrew what I bought faster than it fell apart. Probably why I didn’t notice it. I would rather go to a retailer who doesn’t brag about roll back pricing and sells things that may cost a bit more but last two or three times longer.
Value, security and peace of mind are what we should be looking for. Having the right coverage protecting your home from disaster, theft and possibly a nasty lawsuit should not be what you have to worry about when and if these events happen to you and we hope they never do. The fact is that they happen every day to good people. We see people and businesses year round that come to us because they were sold what they thought they wanted, not what they actually needed by the respective “Pied Piper” for that company. We pick up the pieces of lives all the time and it has become a thought provoking topic of conversation about why people treat something as critical as insurance like a superstore commodity when it really should have quite a bit more value. Insurance is not gray. It is black and white. You either have what you need or you don’t and once you need it, it is too late to “add it on” to your policy.
Review your policies, visit your insurance agent or come into any of our 6 convenient offices to discuss the right coverage for you. Remember the next time you find yourself setting your annual budget, be sure your insurance is one of the items, like your mortgage, that is static and not on the chopping block. You’ll sleep better knowing that you have what you need should you need it.