NEVER buy insurance online or on an app


Credit: Insurance Journal

"But I don't have tiiiiime to talk with an agent. What's wrong with buying online?"

To be sure, there are numerous websites to visit and boiler rooms to call where you can buy and bind insurance in a few minutes.

However, the chances are overwhelming that you will pick the cheapest option. That's just a natural tendency 

And there's nothing wrong with wanting to save money. However, what are you going to get for your money? And what are you not getting for those few dollars you might save?

Do you know that there is no such thing as "full coverage"? Do you know that your policy will only pay up to the stated limits? Do you know that once those limits are exhausted your insurance company walks away and you are on your own?

Do you know what that policy you bought on the Ratecrushers app will do if you are on the receiving end of a hit-and-run where they can never find the perp and you can't go to work for 18 months?

Do you know if your roof will be covered at replacement cost or actual cash value? Do you know what will happen if the sewers back up into your house? Do you know what will happen if your wife's wedding ring is stolen? 

Probably not.

And will you "have time" to deal with not just these things happening, but also with finding out that your Ratecrushers policy is essentially worthless?

And if the following story doesn't dissuade you from buying online, nothing will.

I heard recently about some poor soul up north of Denver who bought a homeowner's policy online and, like so most people, took the cheapest option. He also, like most people, didn't pay much attention to the details. 

Little did he know that the 10% all-peril deductible was not for 10% of the claim, but for 10% of the cost to rebuild the house, which in this case was $300,000.

When a hail storm went through town a few months later and hammered his roof, he had a most unpleasant additional surprise. It was going to cost $18,000 for a full roof replacement. And his deductible wasn't an inconvenient $1800, but rather a financially ruinous $30,000.

The policy was essentially worthless.

Buy your insurance the right way. Talk to a professional agent who will walk through your policy line-by-line and educate you as to what the policy means to you should something really bad happen. Claim time is the wrong time to find out that your agent didn't do his job properly.

30+ carriers ... 40+ states
Offering life & group benefits in Colorado.

Doug Newman

303-902-5503 -

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