Auto Insurance Louisville KY Serving Louisville for Over 35 years!
(502) 933-2255 | (800) 468-1215
  • Home
  • Get A Quote
    • Get A Quote
    • Auto Insurance Quote
    • Home Insurance Quote
    • Life Insurance Quote
    • Renters Insurance Quote
    • Commercial Auto Insurance Quote
    • Business Owners (BOP) Insurance Quote
    • Motorcycle Insurance Quote
    • Watercraft Insurance Quote
    • RV Insurance Quote
    • Long Term Care Insurance Quote
    • Flood Insurance Quote
    • Workers Compensation Insurance Quote
  • Personal
    • Auto Insurance
    • Home Insurance
    • Life Insurance
    • Motorcycle Insurance
  • Business
    • Commercial Vehicle Insurance
    • Business Owners Insurance
  • Customer Service
    • Frequently Asked Questions
    • Report a Claim
  • Resources
    • Our Companies
    • Insurance Glossary
    • Calculators
    • Free Reports
    • News Center
  • Blog
  • About Us
    • About Us
    • Employee Directory
    • Testimonials
    • Leave a Review
    • Referral Program
    • Privacy Policy
  • Contact Us
    • Contact Us
    • Map & Directions
    • Join Our Newsletter
Auto & Home
Insurance
Commercial
Insurance
Life
Insurance
Church
Insurance
Home > Blog > The Dangers of Low Cost Insurance
TUESDAY, APRIL 3, 2012

The Dangers of Low Cost Insurance

It’s commonly said that you truly get what you pay for, the same is true with insurance. Some companies advertise super low-cost insurance options and with the downturn economy and unemployment rates these low-cost insurance policies have grown in number and popularity in the last few years. Many of the online insurance services flash big ads offering build-your-own-policy features with ultra-low costs that have convinced millions of customers they're getting a good deal.

However, if it seems too good to be true, it probably is. Most customers find out quickly that their good deal might not have been as great as they thought.

Renewals: You might get a great deal when you sign up initially, but read the fine print. One customer signed up for a low rate only to find that upon renewal, their premiums increased over 10%. The company claimed that the discounted offer was only available the first time you sign up and every renewal afterwards is increased.
 
Customer service: You can’t have your cake and eat it too. You might get a low rate, but when it comes time to file a claim, good luck getting someone on the phone. You can't expect to get superior coverage and full customer service at a discounted rate. Many customers who fall victim to appealing low rates find out that their claims are denied, there are loopholes where they are not covered and it is impossible to talk to anyone over the phone.

Check the deductible: It is important to remember that your deductible and premiums are inversely related. If a company is advertising super low premiums, minimal monthly payments or no money down then chances are your deductible is through the roof. On the other hand, if a company is offering no-deductible or pennies for full coverage, double-check your monthly payments.

Maximum limits: Some super cheap insurance policies have claim limits that won’t even cover the cost of your car. If you get into an accident that surpasses the limitation, the damage still must be paid. Most likely, that payment will come from your pocket. Consider how much damage your car could cause. Even a short stay in the hospital could wipe out your entire limitation coverage. Experts suggest having at least $500,000 of liability coverage.

Independent insurance agents can help you find a policy that works with your budget and provides the coverage you need. These agents work with many insurance providers and can shop around for the best coverage at the best prices to find a real deal for their customers. Independent agents are not loyal to any one insurance company, so they can look out for their customers and let them know when a better policy or a better price is available. This way, you can ensure you’re getting exactly what you pay for.


By Matt Reynolds - Google+
Posted 5:55 PM

Tags: auto, home, life, independent agents, personal, commercial
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010

  • personal(147)
  • home(77)
  • auto(70)
  • commercial(64)
  • save(51)
  • safety(46)
  • home insurance(46)
  • auto insurance(37)
  • family(34)
  • life(24)
  • discounts(24)
  • life insurance(22)
  • weather(17)
  • business owners insurance(17)
  • winter(14)
  • claims(12)
  • credit rating(10)
  • summer(9)
  • motorcycle insurance(9)
  • renters insurance(8)
  • independent agents(8)
  • motorcycle(8)
  • green(8)
  • teen drivers(8)
  • stats(7)
  • boat(7)
  • kentucky(7)
  • spring(7)
  • louisville(7)
  • myths(7)
  • commercial vehicle insurance(6)
  • fall(6)
  • boat insurance(6)
  • specialty insurance(5)
  • long term care insurance(5)
  • rv insurance(4)
  • flood insurance(4)
  • health(4)
  • health insurance(3)
  • travel insurance(2)
  • mobile home insurance(2)
  • rental car insurance(2)
  • news(2)
  • identity theft insurance(2)
  • church insurance(2)
  • moving insurance(2)
  • cell phone insurance(1)
  • umbrella insurance(1)
  • senior drivers(1)
  • workers compensation insurance(1)

View Mobile Version
 
  • Progressive Insurance
  • Hartford Insurance
  • Safeco Insurance
  • Travelers Insurance
  • Grange Insurance
  • Guide One Insurance
  • Kentucky National Insurance
  Connect With Us: Social Social Social Social Social
Icon
Site Links

Home
Get A Quote
Our Companies
Testimonials
About Us
Contact Us

Claude Reynolds Insurance Agency, Inc. BBB Business Review

Louisville Auto Insurance Review

Icon Visit Us

Claude Reynolds Insurance Agency Inc.
6801 Dixie Hwy Suite 232
Louisville, KY 40258
Phone: 502-933-2255
Fax: 502-933-5057
Map & Directions
Claude Reynolds Insurance Agency Inc. | 6801 Dixie Hwy Suite 232, Louisville, KY 40258 | 502-933-2255
Powered by Insurance Website Builder | Online Marketing by One Thing Marketing