What are You Really Buying?

The importance of making informed decisions when buying insurance

By: Gary W. Moore Jr.

As consumers, we typically make informed decisions on our purchases, but in many cases, this does not happen when we purchase insurance. Typical consumers go to their agent or direct company and take whatever comes their way, trusting it will be what they need.

It is understandable that insurance is not as interesting as buying a car, primarily because it is an intangible and has the appearance of being complicated. When we purchase a new car, we normally have an idea of what we want before we get there due to some sort of research, advertising or just a general liking of the vehicle or brand. What we don’t do is walk up to salespeople and ask them to choose whatever they think! Then you would find yourself very unhappy, leaving the dealership in something that looks like the Griswolds’ family truckster from the movie, “National Lampoon’s Vacation.”

Purchasing insurance is exactly the same way regardless of what policy you are purchasing. Our agency, along with many others, tries to create a value for the consumer by providing the most coverage for the best price. Too often, we see where a consumer purchased a policy that does not cover much at all based on price alone. There is no value in this because it is essentially a waste of money due to the lack of coverage.

You, the consumer, should have a fundamental understanding of what you are purchasing. Don’t be afraid to ask questions or to demand reasonable answers. Explain to your agent what concerns you most – for example, “What happens to my gun collection if my house burns down?” or “How will my auto policy pay for damages if I get hit by an uninsured driver?” Most agents will ask you a series of questions to identify your needs, but some don’t, and that can cause great havoc in the event of a loss.

I encourage all of you to pull out your insurance policies and read them. Look at the coverage amounts, and see if they make sense. And read the “exclusions,” because knowing what is not covered is equally important as knowing what is covered. If you find something you do not understand, ask your agent to explain it. If your agent does not do a good job explaining your coverage or answering your questions, find a new agent. There are plenty of good agents in the Coastal Bend who can – and will – answer your questions!

For more information, visit Moore Insurance Agency online at www.moore-ins.net.



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