Is More Expensive Better? Cheaper Better?
NO NO NO NO NO NO NO
We get this a lot!
I’ll be brief here - no point in going on about any of this. When an insurance company wants to do business in your state they have to abide by certain laws and regulations for that state. From time to time those laws/regulations may change… as a lot of states are doing right now and this probably will continue until…. well who knows. When these laws change - the insurance company may no longer be in compliance or WANT to abide by those regulations so they price themselves out of the market. They make their price so high that they hope you will not buy it. It is usually extremely high and you as a consumer would have a reaction of “WOW” - whereas we brokers think - “oh… stay away right now”. They cannot pull out of selling in a state or they have to do all the paperwork all over and go through years of waiting for approval to get back in. Once they change their plans to comply with laws and regulations, then they are back in the competitive market and their prices will come back down.
NOW… the interesting thing to watch out for is the least expensive plan.
Sometimes a company is the low price leader in a state - let’s take Golden Rule for example. Now Assurant may look at that state and say they want all the business there, (why - I’m not sure but I can bet bottom line profits are the driving force), so Assurant may come in with a plan that is so amazing that even we agents are amazed and they price it lower than Golden Rule. You win - lower price and better plan! Both are great companies!
This isn’t ALWAYS the case - sometimes a cheaper plan is also just less coverage. You definitely have to talk to an agent who pays attention to the activity of many insurance companies.
Be careful out there…..
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