Cheap Insurance Coverage Can Cost You Big Later

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Cheap coverage can feel like a win until claim time.

The problem is not always the price. Sometimes it is what was removed from the policy to get that lower price.

You do not have to memorize insurance lingo. You just need to ask the right questions.

Auto insurance questions to ask

Ask your agent:

• What is my PIP level?

• How would my health insurance treat auto injuries?

• What are my uninsured and underinsured motorist limits?

• Do I have Broad or Standard Collision?

• Do I have gap coverage or OEM parts coverage on newer vehicles?

That Broad vs Standard Collision question can matter.

For example, say you bump a curb and the damage is $2,900. With Broad Collision, if you are not at fault, your deductible is often waived. With Standard Collision, you usually pay your deductible regardless.

That is a big difference when claim time comes.

Home insurance questions to ask

Ask your agent:

• Do I have water backup coverage?

• What is the water backup limit?

• Is my roof covered at Replacement Cost or Actual Cash Value?

• What is my wind or hail deductible?

• How much Ordinance or Law coverage do I have?

Here is a real example.

A homeowner had hail damage and needed a $15,000 roof. The roof was covered at Actual Cash Value. After depreciation and the deductible, the payout was about $7,000.

The client had to make up the rest.

The point

Cheap coverage is not always bad. But cheap coverage you do not understand can become expensive later.

A quick 10 to 15 minute review with your agent can help you catch gaps before a claim happens.

Need help reviewing your policy?

Champagne Agency can walk through your auto and home coverage with you and explain what each part actually means.

You do not need to know every insurance term. You just need someone who knows which questions to ask.