Can Insurance be a Bargain?
Can Insurance be a Bargain?
It's not always easy to define a bargain. What may be cheap to one person is extortionate to another. Therefore the only really effective way of actually doing it is to compare like for like prices. With products this is relatively simple, as long as it is the same model and brand, you can do a quick price comparison. However, when it comes to something a little more variable, such as insurance, things become a bit more complicated.
Insurance can easily range from just a hundred pounds up to anywhere in the thousands. It's all dependent on what it is that you're actually insuring, the associated risk and the company that you use. Essentially it's a jumble of information, which, when combined in a single policy, can have a significant impact on the amount you're quoted.
So is a five hundred pound car insurance a bargain? Well, not in most circumstances. However, if you are a young driver with a powerful imported vehicle, then it might well be the best you can hope for. In fact this would probably considered a bargain, particularly in light of the circumstances.
A lot of it is circumstantial of course. If you're living in an area of high crime and don't have an intruder alarm, you have to expect that your home insurance is likely to cost significantly more than somewhere in a safe and secure area. This is simply how insurers calculate risk and the cost of individual policies. There is no blanket price and therefore each quote has to be entirely unique; constructed from the information provided and calculated using the insurer's individual formula.
Of course most homeowners, businesses and drivers would probably be more than happy not having to buy insurance at all. However, not only is it a legal requirement it is also for your benefit too. It is there as a protective cover in case anything should happen to your property. It can certainly become a bargain in the event that you come to claim.
Say for example you pay a few hundred pounds a year for your home insurance. Initially that may seem like a considerable chunk of your available cash. However, imagine that the worst happens and there's a huge fire that guts the inside and even damages the structure of your property. Most people don't want to consider this for obvious reasons, but at least if you have adequate cover you can get back on your feet.
Home insurance, assuming you've purchased both buildings and contents cover, will potentially result in tens of thousands of pounds in compensation. Whilst this won't replace your heirlooms and other irreplaceable objects, it is at least some form of fiscal compensation that will ensure a bad situation isn't made significantly worse. It would also make the relatively small amount of money spent on insuring your property an extremely worthwhile investment.
A lot will come down to individual perspective and what constitutes a bargain' in your world. In terms of insurance, you will at least have an opportunity to restrict the financial burden by shopping around and getting quotes from the many providers out there today. Whether online, in person or over the phone, there are good deals to be had by those who are prepared to go out and find them. Whilst they might not compare well to the offers friends have received, it's important to remember that everybody's circumstances are unique.
So can insurance be a bargain? Of course it can. When it comes to making a claim, you'll always be thankful that it's there. Even if this never happens (which is what everybody hopes of course), it provides huge peace of mind and allows you to get on with your life without continually worrying. Find the cheapest available option and you really can make it a bona fide bargain too. What is a Motor Insurance Policy? Disability Insurance for Sleep Apnea Commercial Truck Insurance: Special Considerations For Independents Three Things You Need To Know About Condo Insurance Do Not Be Afraid Of Insurance In New York How To Choose A Good Orange County Insurance Company Protect The Future Of Your Loved Ones With Term Insurance Coverage How To Get Your Insurance Company To Pay For A New Roof Or Roof Repair Professional's Need Insurance For The Unexpected Insurance Changes Require Adaption for Savings The problem of the uninsured Alternatives To The Final Cost Of Insurance Bloomberg Television To Present Live Coverage Of The 2011 Annual Distressed Investing Summit and Turnaround Awards on March 6-7