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No one wants to pay too much for their insurance, but Tampa Bay area consumers need to be cautious if they get insurance quotes that seem too cheap. There’s usually a reason for that—such as the cheap insurance policy being quoted is stripped down to the bare minimum. As is the case for many things, with cheap insurance, you get what you pay for.

Financial trouble ahead

In an attempt to bring in business, some agents will quote bare bones, stripped down insurance policies that don’t provide the coverage most people need. We understand that money’s tight and no one really likes to spend money on insurance—a product you hope you’ll never have to use! The reality is, if you buy a stripped down insurance policy that covers only the bare minimum, you may find yourself in major financial trouble.

The purpose of insurance is to protect you financially in the event of an accident or other covered peril—this means replacing your own damaged or destroyed property, paying for your injuries, and paying for any damage you cause or are responsible for, even something as seemingly innocent as a trip and fall accident that takes place on your property. Insurance protects both your physical possessions and your liability.

Cheap Car Insurance Example

In the case of car insurance, for example, the minimum coverage to meet the Florida Financial Responsibility law requirement is bodily injury coverage of $10,000 per person/$20,000 per accident/$10,000 property damage coverage. When you get a car insurance quote, you may be quoted only the bare minimum. Many car accidents easily exceed these limits, especially if multiple vehicles or injured parties are involved, and then what happens? The injured parties are likely to come after you in court.

Cheap Homeowners Insurance Example

You should also be careful when comparing homeowners insurance. If you have a lender, they will require that you carry a certain amount of coverage to protect them. However, will that be enough to enable you to afford to rebuild if your home is completely destroyed? Will you have enough coverage for your contents if you need to replace them? When comparing quotes, ask if you’re being quoted replacement cost or actual cash value.

Compare Apples to Apples

Remember, when you request insurance quotes, make sure each quote is for the same coverage type and for the same limits so you can make a true comparison.

Let L & M Insurance Group help

The good news for you is that more complete coverage might not cost you much more that a stripped down policy. With multiple insurance companies to choose from, L & M Insurance Group is ideally positioned to find you the best coverage at the most cost effective rate. And your L & M Insurance Group agent can also help you find discounts that help lower your costs.

Yes, there are times in everyone’s life when the bare minimum is all you can afford. But during those times, you probably have the “bare minimum” to protect as well. Once you’ve begun to accumulate assets, such as a home, a newer model car, or expensive personal possessions, you’ll want to be sure your insurance coverage keeps pace. Please give us a call at 813-672-4100, or email us, if you’d like a quote, or have any questions about your insurance needs.

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