Home and auto insurance are among the things many people buy but hope to never use. Proper coverage provides peace of mind that an accident, weather event, natural disaster or unexpected injury or illness won’t cause financial ruin. However, many Americans are uninsured, underinsured or paying too much for coverage.
“According to the most recent Insurance Research Council findings, about 15% of U.S. motorists are uninsured — more than 1 in 7 drivers on the road. For those driving without coverage, and for anyone involved in a crash with them, even minor accidents can lead to significant out-of-pocket costs.”
“Homeowners need to be properly insured, too. According to the National Centers for Environmental Information, the U.S. has experienced more than 400 weather and climate disasters since 1980 that each caused at least $1 billion in damage. Even small storms can send branches into roofs or windows, leading to costly repairs. To stay protected, homeowners and drivers should make sure their policies cover today’s replacement and repair costs, along with liability coverage for injuries and other damages.”
Insurance helps bridge these gaps, but it’s common for people to renew policies without checking them. Because insurance policies are often seen as complex and confusing, that may prevent people from purchasing proper coverage.
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“Many homeowners still struggle to understand what’s actually in their insurance policies, and confusion isn’t limited to home coverage. Recent surveys show that rising premiums and complex policy language leave many drivers unsure about what their auto insurance truly covers — and 40% say they’re stressed about affording it at all. Clear, up-to-date coverage is essential for avoiding costly surprises when something goes wrong.”
Consider these challenges consumers face when shopping for and comparing insurance policies and providers:
- Industry Jargon and Lingo – When you visit a website or talk to an insurance agent, you may feel like you’re speaking a different language with terms like “deductible,” “premium,” “co-pay,” “additional insured,” “aggregate limit” and “co-insurance.”
- Bait-and-Switch Feel – Some insurers promote eye-catching “as-low-as” rates, but once your driving history and other risk factors are reviewed, the final quote can jump far above the advertised price. It’s not technically bait-and-switch, but it can certainly feel that way to consumers.
- Fine Print – “Sorry, that’s not covered.” These can be chilling words to hear when you’re hoping your insurance policy comes through for you in a time of need. An explanation may be deep within the policy, but you may need a magnifying glass to find it.
- Transparency – Many decisions that affect rates and coverage may seem to be done behind a curtain, such as rates in comparison to neighbors, remodeling impacts on rates, rate changes based on age and more.
- Apples to Oranges – With many moving parts within the average policy, it can be difficult to compare rates and coverage.
Improved technology is helping solve some of these issues and deliver an improved experience. A decade ago, the only way to compare insurance rates was to make phone calls, meet with agents and read brochures. Even with the internet, you still need to visit multiple websites and take notes, often entering the same personal information time and time again.
Today, insurance marketplaces, like the flagship platform from Guaranteed Rate Insurance, make it easy to compare multiple carriers, all at once, with a single application. Customers enter basic information to receive quotes for home and auto insurance coverage from more than 50 top-rated carriers, allowing for a quick, side-by-side comparison of coverage options.
“The primary benefit insurance delivers is peace of mind,” said Jeff Wingate, executive vice president and head of insurance for Guaranteed Rate. “If the relationship between an insurance provider and customer begins with stress, confusion and frustration, the provider isn’t delivering the desired service. That’s why we made it easy for consumers to make informed decisions about rates and coverage from trusted and reliable providers.”
Life insurance, umbrella, jewelry, flood, pet, landlord and earthquake policies are among the other coverage options available for comparison. Coverage benefits are easy to read with clearly explained terminology and experienced agents standing by to answer questions or assist with purchasing a policy.
To find more information and explore the insurance marketplace, visit rate.com/insurance.
(Family Features)
Photos courtesy of Getty Images
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