Two Simple Reasons Cheap Insurance can Leave you Underinsured

 

Choosing insurance that is right for you can be a tricky and time-consuming task. Online insurance policies have taken this perception and marketed it to their advantage. As a result, consumers now perceive online insurance policies as easier, cheaper and generally hassle free. In some ways these perceptions might be correct, however in others it is simply not true. We discuss why choosing online insurance policies can leave you underinsured and at substantial risk.

Today, every service imaginable is accessible online. However, there are situations where taking this route is simply not the best option for the security of you and your business. When it comes to insurance, you want to be assured that you receive professional and appropriate advice and that if something ever happens to your business, your insurance policy will be there to ease the burden. The majority of online insurance policies do not live up to these values and can leave you in the lurch when something goes wrong, and you need to make a claim. Below are two simple reasons why cheap insurance can leave you underinsured.

Inadequate coverage

The bottom line is this; the reason that some insurance policies can be less expensive than others is because of their inadequate coverage and exclusions. Many policies contain exclusions which most normal people would think should be covered. One of the most common claims we see on household insurance policies however, is as a result of Burglary or Theft which has occurred due to the criminals entering the house through an open window or unlocked door. So, burglary is burglary right? It should be covered, right? Wrong. There are several easily accessible online direct home insurance policies that specifically exclude cover if you are burgled but have not ‘adequately secured’ the building, even if you are home at the time!

If you buy insurance online, you may be unaware of the entitlement of the insurance coverage which may be communicated through clauses and even through ambiguous words in the schedule and policy wording that you might not pick up. This is where a professional is necessary as they assess your needs, help you understand your insurance allow you to weigh up the risk. In any case, at least you know where you stand.

Poor customer service and claims

Often the reasoning behind choosing a DIY insurance plan is the entitlement to cut the out ‘middle-man’. But an insurance broker is more than a middle-man. An insurance broker is ultimately your advocate and helps you find the best and most affordable insurance in a timely, and stress-free manner. They have insight into the insurance field which gives you the opportunity to negotiate the best policy for you, your family, or business. By having an insurance broker on your side, you can be confident in claiming when the time comes. At the end of the day, an insurance broker provides you with professional advice and peace of mind.

Insurance can be hard to navigate and here at Western Insurance Brokers we specialise in delivering results through one on one consultancy. For more information, check out our website or contact us for a free consultation!