When it comes to buying insurance, whether for your car, home, health, or income, it’s tempting to focus on price. After all, who doesn’t want to save money? But while a cheaper premium may look appealing upfront, it could cost you far more in the long run. if the policy doesn’t do what you need it to. Equally, by chatting with an advisor, you’ll ensure you’ll end up with the right policy for you and your needs.
Let’s dive into the top reasons why “cheaper” doesn’t always mean “better” when it comes to insurance:
1. Lower Premiums Often Mean Lower Cover
Cut-price policies tend to offer minimal cover. That might be fine – until you actually need to make a claim. For example, if you bought a cheap contents insurance policy and unfortunately had a break-in, you might find that only £10,000 of items are covered. Plus, it excludes electronics, jewellery, and bikes. That “bargain” policy won’t come close to replacing what you lost.
2. Exclusions and Small Print Matter
Cheap insurance policies often have more exclusions. Also known as: the things they won’t pay out for. Our top tip? Always read the key facts document and ask an adviser to explain what’s not included.
3. Delays, Excesses, and Claim Limits
Cost-saving features reduce the price but can also reduce the value of the policy when you need it most. Such as:
- Higher excesses (the amount you must pay before the insurer contributes)
- Lower payout caps (especially on home, travel, or gadget insurance)
- Longer waiting periods (common with income protection or private medical insurance)
4. Poor Service at the Worst Time
Customer service can suffer with ultra-budget insurers. Long call waits, confusing processes, and slow claims payments may be more common with cheaper providers. When you're already dealing with theft, or an accident, poor service adds stress you don’t need.
Check with an advisor before choosing on price alone.
Some budget insurers might not offer legal and financial coverage. Or aspects like counselling services and family support. In contrast, more comprehensive (and slightly more expensive) policies often include these extras that can make a big difference in a crisis.
The most important question isn’t “What’s the cheapest insurance?” but “What’s the right insurance for me?”
It’s not about buying the most expensive insurance – it’s about buying the most suitable one. Sometimes that may cost a little more, but in exchange, you’ll get peace of mind, real support when you need it, and a policy that actually works for your situation.
Chat with us today to ensure you are insured where you need it.
SPEAK TO AN ADVISER