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McQuiston: Buyer Beware Of Online Insurance Shopping

on February 7, 2019 - 1:33pm

The Jemez Agency

There is no disputing that the internet has changed our lives in the past 15-20 years. It has altered how we live, shop, and interact with each other. Companies such as Facebook, Amazon, Google and Apple have become household names.

But technology has also brought the expectation that everything should be quick and easy.

To meet this demand, some technology companies have tried their hand in the insurance space which can be problematic for the consumer.

While being able to access a quote online is a convenient and viable option for the consumer, there is a very dangerous reality that the consumer may end up with serious deficiencies in coverages if they only view the price when quoting online.

The fact is not all quotes or policies are alike; some quotes offer higher limits, more “enhanced” coverages, coverage exclusions, and different deductibles.
Unfortunately, most consumers do not realize these differences or deficiencies until a loss occurs. Many customers I talk to think insurance is a commodity that should be purchased from the lowest priced company out there. But in my opinion, this can be a big mistake when a claim occurs. Did you know, for example, there are some companies out there that will charge only one deductible if something happens to your car and home from the same event.

Say a big tree falls and damages your home and car. Does your policies require you pay a deductible for your home and your auto or one single deductible? How about the piece of jewelry you purchased over the holidays. Does your homeowners policy automatically provide coverage?  If so, how much?

Seeking a trusted  insurance agent is the best option to avoid coverage gaps or deficiencies. Insurance agents are licensed professionals who can find the right coverage for the individual needs of a client, and at a fair price. Independent agents, like The Jemez Agency, represent several different insurance companies.

Captive agents (think national name recognition agencies) tend to offer only one insurance company. Insurance is an essential product in our everyday lives that can provide the invaluable piece of mind knowing your assets are protected.

But buying insurance online to seek the best price, may leave you exposed to uncovered loss exposures you were not aware of. As the old saying goes, “the devil is in the details.”

It may be prudent, but it’s important to take your time when quoting online so coverages can be compared and reviewed more closely.  Your assets are more valuable than a few quick minutes of your time.