In times of economic uncertainty, it’s natural to look for ways to tighten your budget. One area people often consider cutting back on is insurance coverage. However, based on our 33+ years of experience at Leigh Agency, we strongly advise against this. Here’s why.
Increased Risk of Uncovered Losses
Insurance policies are designed to protect you from unexpected losses. During economic downturns, these unexpected events can have a particularly devastating impact. Reducing your coverage might save a few dollars now, but the potential cost of an uncovered loss could be financially disastrous.
Higher Premiums in the Long Run
Many people are unaware that reducing coverage or canceling policies can result in higher premiums in some cases. Insurers often provide discounts for continuous coverage and interruptions can lead to increased rates. Therefore, while you may save a bit in the short term, you could pay more in the long run. Instead, you should consider keeping your current level of coverage, but ask your agent for ways to cut costs that make more sense like reviewing your policy for additional discounts.
Difficulty in Reinstating Coverage
If you decide to cancel your insurance policy and then want to reinstate it later, you may find it is not as simple as it seems. You might face stricter underwriting requirements, or worse, you could be denied coverage entirely, especially if you’ve had a claim during the period of lapse.
Loss of Peace of Mind
Insurance isn’t just about financial protection; it’s also about peace of mind. Knowing that you’re covered in case of unexpected events can provide a sense of security during unstable times. Cutting back on coverage might add to your stress rather than alleviate it. Instead of reducing insurance coverage during difficult economic times, consider speaking to an experienced insurance agent. At Leigh Agency, we can help you review your current policies and identify potential areas for savings without sacrificing necessary coverage.
Concerned about your insurance costs during these challenging times? Contact Leigh Agency today, we can help.