Friday, 30 March 2012

What does cheap insurance means?

You must have read so much about cheap insurance, cheap life insurance, cheap term life insurance policy, cheapest auto insurance, cheapest car insurance etc. But what do you mean by this cheap insurance. Is it cheap insurance cost or cheapest premium paying insurance? This article try to explain what does the cheap insurance means and what is its reliability.

1. Cheap insurance cost

Insurance cost is what amount you have to pay for keeping your insurance live. It may be life insurance, auto insurance, term life insurance, car insurance, theft insurance and many more insurance. If an insurance policy reduces the total amount payable by an insurance policy holder, it may call cheap insurance. It is not only the low premium payable by you but includes all other expenses as per the terms and conditions of the insurance provider. For example, if you have insured your car and you are not following the norms such as frequent timely servicing and maintenance of your car, you may not get the claim paid, if the company urged you to do so. Then this is also may be considered as the cost of insurance. Maintaining the safety systems and other required arrangements also increase the cost of insurance.

2. Cheap insurance premium

Normally cheap insurance means cheap insurance premium. But cheap insurance premium itself does not mean a good insurance protection. The main objective of an insurance policy is to compensate any uncertain damage or loss of the insured property, person or life. When you go for a cheap insurance premium you must confirm the claim settlement policy of the insurance company also. If you paid for an insurance and getting delay or never happened the claim settlement what doe s the insurance policy means. In case of life insurance, you have insured your life and if any unfortunate event happened to you and if your beloved ones compelled to run from pole to pillar for getting the claim, what does the benefit of cheap insurance means.

 3. Low agency commission

The agency commission also increases the cost of insurance. The insurance company should pay agency commission for its agents for the survival of insurance company. The agent who works for an insurance company must get his remuneration.  But if the insured go for online insurance policy, the agent’s commission can avoid or reduce and can reduce the insurance cost.

When you go for cheapest insurance policy keep these in mind and compare same type of insurance policy with various insurance companies. The comparison must be done in insurance cost, related cost to keep the insurance policy active, claim settlement etc. Then you can enjoy a cheapest insurance policy and cheapest protection.

What does cheap insurance means

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