Cheap Insurance Quotes Are Not Always What They Seem
Written by Susan Reynolds   
Tuesday, 16 March 2010 07:22
One of the most standard phrases in business these days is "Let the buyer beware" and this is exactly what you need with cheap insurance quotes. It used to be that you would have to physically go to each insurance company and sit down with an agent to get an insurance quote, but today you can do it online or over the phone and you need to use caution when looking at cheap insurance quotes. Don't get caught up with a quote for a low monthly payment because, unless you are careful, it can end up costing you big time down the road.
by SusanReynolds


One of the most standard phrases in business these days is "Let the buyer beware" and this is exactly what you need with cheap insurance quotes. It used to be that you would have to physically go to each insurance company and sit down with an agent to get an insurance quote, but today you can do it online or over the phone and you need to use caution when looking at cheap insurance quotes. Don't get caught up with a quote for a low monthly payment because, unless you are careful, it can end up costing you big time down the road.

Competition in the business arena keeps everyone on their toes, but the insurance business is extremely tough, which means that it will drive some people to do thing which are less than ethical in order to get your money. One thing you do need to be aware of with insurance is that there could be many different companies that effect your policy, and they can be completely different from the one that sold it to your with the under-priced quote. Be sure to check out each of the companies that deal with your policy with the Better Business Bureau (BBB) for charges or complaints.

Everyone is not out to steal your money any way they can, and there are plenty of good, honest people out there that will do their best to make sure that you have the coverage you need at the price you can afford. But there are people who will do just about anything to get your money and one way they draw you in is with the low ball insurance quote. They will do this by applying every discount in the book regardless of whether or not you can get it, just so the quote will be appealing. One you agree and they write the policy, of course are not eligible for most of the discounts, but now all of a sudden it is your fault for not qualifying for the discounts. It does sound ridiculous, but it works or they wouldn't do it, so beware and know it is out there.

You are taken in by the low quote and the plan is that once your old policy is canceled, your old insurance company will not want to take you back, so in order to keep your coverage you are stuck paying them a whole lot more money than you had originally thought. When the technique is analyzed, it is a completely dishonest way of doing business, but it works or they wouldn't do it. You have become their customer by default.

Chances are, if it looks too good to be true it probably is. Check any quotes you get very closely for things such as extreme deductibles and discounts for things which you aren't eligible to get. Examples of these types of discounts might be a multiple policy discount, which you don't have, or a good driver discount and you know you got a speeding ticket last year. Look for these kind of warning signs when you look at an insurance quote and if you see this kind of unethical practice, then immediately cross this company off your list and get a quote somewhere else.

Information about Author:

Susan Reynolds is the content coordinator for a leading South African Insurance Provider who specialises in Providing Online Insurance Quote.