Cheap insurance is not always the best
An easy trap for consumers to fall into is to buy on price, rather than quality.
The result is the familiar sayings:
“You get what you pay for”
“Buy cheap buy twice”
Unfortunately, the insurance industry is little different as those companies who offer the cheapest quotes often do so by cutting quality of service in some way, such as telephone support and response times, and even the length of time to settle a claim.
This especially comes across on the various review sites, where members of the public can air their opinions on products and services, and in the insurance sector the overwhelming message is that those who buy the cheapest insurance may be least likely with the service they get when they really need it.
You can see what I may when you compare reviews for services such as Direct Line Home Insurance with Nationwide Home Insurance.
Direct Line has always competed on price, whereas Nationwide is a more conservative company more likely to charge for service quality. The result is that Direct Line tends to have more complaints online than the latter.
Of course, this does not mean to say that all cheap insurance services are necessarily bad, as much as caveat emptor needs to be applied in the purchasing decisions.
Certainly there is a lot more competition in the insurance industry, and as travel agents will now be able to sell insurance directly, competition is likely to increase, and with that, some real bargains may be had.
The most important part of getting an insurance policy is making sure that you are protected for what you need. Once you’ve identified that, you need to consider the level of service you would expect to get in your pricing.
Sometimes the difference in the price of an insurance policy can be a matter of just a few pounds, but the difference in service can be the difference between getting a claim settled quickly and easily, or else having the process drag on painfully for months.
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