This is a question we get all the time! Cheap vs expensive insurance, which is better? What we all have to remember is that cheap to one person may not be cheap to another. This is known as "price perception."

When shopping for insurance, everyone usually says that they are looking for the cheapest premium to fit their monthly budget. But this doesn't always mean that you are adequately covered. There are so many factors playing a role and to put this into context, you need to understand the requirements behind insurance and why the value is more important than cheap monthly premiums.

Cheap vs Affordable

With all insurance, the cost most of the time is indicative of the extent of coverage or service that you are receiving from your insurer. There is a wide difference between cheap and affordable insurance/ "Cheap" insurance may actually offer you less coverage, while you can receive adequate cover by selecting an "affordable" insurance plan. So, it is advisable to compare rates of insurance policies and weigh these out against the coverage offered under each plan.

Drawbacks of Choosing Cheap

The appeal of a low-price tag is irreplaceable, but that should not deter you from finding the most suitable plan. We can help you find a policy that offers extensive cover in a cost-effective manner. Some drawbacks of picking the plan with the lowest price include:

Insufficient coverage

Some of the cheapest insurance plans offer only the basic coverage. This means that if you ever need to claim for something that is unique to you or your property, your insurance company will only pay for the damages that are generic to every policy they provide. This means that you will have to foot the bill for anything that is outside of the generic cover your policy provides.

High deductibles

Some insurers offer comprehensive insurance cover at a low cost with a clause of high deductibles. This is your excess or first amounts deductible which is an amount that you will be expected to pay at the time of a claim. If you have are not likely to claim or are able to easily access funds to pay a higher excess this could work for you; however, if your claims history shows frequent claims or you are unable to access larger sums of money, this would not be a feasible route to take.

Poor customer service

Insurers offering the cheapest premiums may not have the best customer service. The claims support facility may not be efficient as well. So, you should contact your broker to find out about the policy that best suits you.

When it comes to insurance, it is better to have the mindset of "better safe than sorry". Chat to us for the best outcome with your premium and cover. We take the guesswork out of insurance and empower you to make an informed decision.