There are numerous reasons why you should always get quotes on insurance products. Sure, it is just common sense to get quotes, but there are reasons why behind common sense. While it is a good thing to teach your teens and young adults to always get quotes on everything from car insurance to home improvement, you should be instructing them as to why it is so important so that they do not just grab products and services on the first quote instead of a better quote.
1. There Is Insurance Based on Credit, and Insurance That Requires No Credit Check
Now, more than ever, insurance companies may check your credit. For young adults and teens that have no established credit, that means that the quote they are given for car insurance, life insurance, etc., is going to be significantly higher until they establish credit and the credit is in good standing. For this cross-section of the population, that kind of insurance is a little unfair, and that is why you should be teaching your teens and young adults that they need to look for insurance companies that will not check credit scores. They can get better insurance quotes from companies that do not use personal credit scores to justify the quotes given.
2. Insurance Companies Are Extremely Competitive
Most people do not even realize just how competitive the world of insurance really is. The whole point to getting insurance quotes is to see for yourself how quickly insurance companies will cut and slash their quote prices to get consumer business. Some companies will go the extra mile to provide you with quotes from their competitors just to show you what kind of a deal you are getting or not getting from them! Young people (and older people too!) need to learn this very early on so that they can get the best deal possible on their insurance products.
3. Not All Coverage Is the Same
You may get a lower price for insurance from one company, but the other company provides extensive coverage for just a little bit more cash. Knowing exactly what you want to spend on insurance is the most basic of skills. Knowing what you want your insurance to cover in every possible event of casualty loss is an intermediate to advanced skill, and definitely one that you and your grown children should know. Write down the differences in coverage and quoted cost to compare side-by-side when you cannot see the differences. It will help determine which insurance product is better for your hard-earned dollars.
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