Cambridge Insurance Services just saved our new client from Gilbert, Arizona $324 on their auto insurance giving them better coverage at a better price! They had been with Allstate for 5 years and had been overpaying for less coverage. These are great moments when we can truly help people save money and still give them better coverage than what they had.
It so important to understand that just because you have lowered the coverage on your vehicle, it does NOT mean you will always be paying cheaper premiums. Most insurance companies consider these low-coverage policies in a higher risk category so they charge more to offset the risk.
Why is it higher risk you may ask yourself? Let me try to explain this without making it too complicated...insurance companies LOVE statistics and they will run case studies that last years and collect all sorts of data, if it helps them determine how to reduce their risk. These studies protect their shareholders, their responsible clients, and future business opportunities.
So here’s how it affects policies with lower coverage:
1. Studies have shown that people with less money get minimum cover coverage to save money;
2. People who have are involved in severe accidents with minimum coverage will not be able to cover the damages (medical payments, car repairs, etc.) to the person(s) they hit;
3. The losses insurance companies take as results of lawsuits from these types of cases is an incredible risk that they pass on to the demographic that causes them.
1. People with higher coverage are statistically better with their money;
2. They still have accidents, but even when there are losses these policy holders have appropriately identified the risks and have pay the appropriate premiums that offset the losses;
3. These policy holders also have other sources of insurance (umbrella policies) that help offset risk as well.
Insurance companies are able to provide lower premiums to policies with higher coverage because there is less risk associated with them. Ultimately, if you want to water down your coverage, you have that option, but don’t think you are getting the upper hand on insurance companies that live, eat, and breathe statistical loss ratios. They are definitely not the ones left with the short end of the stick.
Maybe money is tight right now and you need to save where you can, but even if that’s the case then higher coverage only benefits you more. Give Cambridge Insurance a call (480-409-0500) and we can give you a FREE quote to show you how increasing your coverages will only REDUCE your risk.
Call today 480-409-0500
6 Reason to Choose Cambridge Insurance Services: http://www.cambridgeinsureme.com/6-Reasons-to-Choose-Cambridge-Insurance-Services.html
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