When shopping around for an insurance quote it is easy to be tempted into going for the cheapest option available. With so many options available from so many different companies you could easily find yourself shopping around for the cheapest insurance quote and not necessarily the best one. The wisest way to shop for insurance is to get a comprehensive cover from a reputable company at the best price for your particular needs. In this article we will be looking at the truth behind cheap insurance quotes.
Due to financial constrains many people would opt for the cheaper insurance quote because they are going for what they can afford and because they do not think that they need all that extra cover. Did you know that you could end up paying more than the original insurance quote? Here is why.
An insurance company could offer you cheap premiums but skimp on other benefits and discounts or offer non. For example, free roadside and medical assistance or a no claims bonus. These are a few ways in which the insurance company makes you feel that you are getting something back from all your premiums.
Another way that you could be paying more on your insurance policy is on your insurance excess. When you make a claim on an item you usually have to pay a fee called an excess fee, which is a percentage of the total cost. Let us say that your excess fee is 10% and the item is R3000, then you are obliged to pay R300. Take note that different policies are subject to different excess fees. An insurance company may not pay anything on a claim if the claim amount is lower than the excess amount.
When you pay a little you get a little in return. This is the truth, as many people find out only after the claim has been made that the insurance policy does not cover a lot of the things they thought they had cover for. Just imagine what it must feel like recently suffering a major loss of your possession, feeling sad but comforted by the fact that you have insurance only to find out that your insurance will not pay for half of the loss due to insufficient cover!
Do not be duped into buying insurance from a company that does have a good pay out history. What you don’t know about a lot of companies that give you a cheap insurance quote is that they can afford to be cheap because they avoid settling claims. They prolong the pay out process by taking long with their investigations, using tactics such as asking for irrelevant information or saying that they cannot process the claim until you have a certain document- usually the one they know you do not have.
Before buying insurance take your time to get clear on your needs and wants. Then go online and get insurance quotes from different companies, take your time to compare the quotes and the check all relevant information. So that you can choose the policy best suited to you, and not end up being under or over insured Often people rush into buying the first cheap insurance policy that comes around and end up paying more with added hidden costs.
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For the best insurance quote for your life insurance needs visit http://www.hollardlifeinsurance.co.za .
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