It seems like everything costs more—a gallon of milk, an ice cream cone, a pair of tennis shoes—even your insurance coverage. But, are you actually getting the best coverage for your situation based on what you’re paying?

Price is a main factor when it comes to shopping, not just for insurance. There is an old adage that says “You get what you pay for.” That isn’t necessarily true, depending on what you’re shopping for. But when it comes to insurance coverage, most times it does hold true.

We see commercials on TV and the internet talking about savings if you switch, or great additions to your coverage to get more bang for your buck (i.e. vanishing deductibles or new car replacement). What really happens when you make the switch to get the savings or to add the extras?

It is vitally important for you to closely examine your insurance policy so you understand what is covered, and what it’s costing you. When you switch to save some money on your monthly premium, you may be giving up some coverage limits, or paying a higher deductible (more on this to come in a few weeks). Or, when you get excited that a company offers new car replacement, know that you might be paying more premium. Also, there are exclusions and limitations that may apply, so you need to know what you’re getting with what you’re paying for.

That isn’t necessarily a bad thing, though. Each insurance policy is unique to the situation, so your policy should offer the coverage you want or need. If you have an older car, with liability only coverage on it, you may not want or need the new car replacement, but a vanishing deductible could be beneficial.

In the end, while price is definitely a factor in which company you choose, be sure to do some research to determine what all is included in that price. Ask your agent if there are things you could add or remove to find the best coverage for your situation. Insurance policies are designed to restore or replace your property in the event of an accident or disaster. But if you look solely at price, you could be limiting what is actually covered in the event of a loss.

That is why we recommend you work with an Independent Insurance Agent to determine your situation and help determine the best policy and coverages for you. We are able to work with multiple companies, and find the one that best suits your individual needs.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.