Insurance and Finance

Don’t Cut Corners with Cut-Rate Insurance

By Lisa Martin 6.25.14

What could sound more tempting than the TV advertisement touting that a simple phone call can wind up saving you hundreds of dollars on your annual insurance premiums. But experts caution buyers to beware — and remain aware — of the risks in buying cut-rate policies. When it comes to insuring your home, possessions, vehicle, or your life, all too often the old adage proves true: You get what you pay for.

“Nobody should shop for insurance by price alone,” says Jeanne Salvatore, senior vice president of public affairs and chief communications officer for the nonprofit Insurance Information Institute. “You want to get a great price that comes with great service. It’s a balancing act.”

Superior customer service consists of agents who know you and your family’s needs. Such dedicated professionals then walk you through options that will not only maximize your insurance dollars but will also safeguard your family’s financial future in a variety of circumstances.

Salvatore also recommends choosing insurance companies that will “handle your claims fairly and efficiently.” Often, that can translate into face-to-face contact with an insurance professional you trust.

Of course, every consumer nowadays looks to save money. One of the best ways to trim premiums is to raise your deductible. For instance, increasing your homeowners deductible from $500 to $1,000 could result in significant savings on your annual premium.

Also, ask your Texas Farm Bureau Insurance Agent about potential discounts for having the following:

  • Multiple policies, including home, car, renter’s and other policies
  • Smoke detectors and fire extinguishers on hand at home
  • Burglar and fire alarms that alert an outside service
  • Deadbolt locks
  • A fire-retardant roof

Coverage and discounts are subject to qualifications and policy terms, and may vary by situation. ©2014 Texas Farm Bureau Insurance.