When it comes to insurance, price seems to be the number one topic. Whether it’s car insurance, life insurance, or business insurance, we get more questions about price than anything else.
To a degree, this is a good thing! Your insurance premium is a fixed cost that comes directly out of your family budget or your business budget. If you can find a policy that reduces your expenses, that is a wonderful thing! This is one of the reasons that we love being an independent insurance agency. We can shop your specific needs to dozens of carriers and find a policy that fits your budget.
But what happens when someone becomes overly fixated on price? Coverages begin to suffer. This is a trend we are seeing across our industry that can put families and businesses at risk.
Consider this, less than 60% of Americans have life insurance with about half of those being underinsured. According to the math, only 30% of Americans have adequate life insurance.
What about homeowners insurance? Three out of five homes in the US are underinsured by an average of 22%. If something were to happen, those families would lose a substantial amount of home value.
What about businesses? Shockingly, this is the most underinsured area with nearly three out of four businesses not having proper coverages in the event of a loss and 40% of small business owners carrying no insurance at all.
We get it, times are tough and everyone is looking to cut back. However, when we risk our financial future to save a few dollars in the short run, it can have a disastrous impact in the event of a loss.
This is just one of the reasons that it’s important to work with an insurance professional who fully understands your situation and will ensure you are protected.