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When shopping around for health, car, life, travel or any other type of insurance most people will try and find the cheapest deal because most people think why should they pay this extra monthly 'bill' for something that is unlikely to happen?
For example a cheap health insurance policy can cost you around $60 to $100 per month depending on the policy and the health insurance company you are with, but for someone who is perfectly fit most of the time this might seem like a waste of money and rightly so, this monthly 'bill' could cost you an extra $1000 per year, fact is that you could get sick and then you will really be wanting your insurance policy to cover your illness or disability costs. Also if you have a cheap car insurance deal where you pay around $50 to $100 a month but you drive carefully so your insurance ??bill" is a waste of money right? Well you may have an accident one day maybe not through your own fault and then you will be hoping your car insurance covers your particular situation.
Most cheap insurance policies do not cover you for everything; they try to cover you for basic situations such as ambulance cover with a health insurance policy or coverage for damage to another vehicle with a car insurance policy. But what about all the other situations that could occur?
Of course your cannot try to be covered for everything that might happen as this would be a very expensive monthly premium cost, but you need to make sure that the insurance policy you have purchased or are about to purchase has not left out any standard coverage that another policy might have covered you for, and it only costs a little extra on your monthly premium (the price of the insurance).
An example of lack of basic insurance coverage could be that if someone travels in their vehicle often around Australia, and the vehicle breaks down and so they call for an emergency auto repair company, the insurance policy covers this so the cost is no problem. However the vehicle may need repair over a few days so accommodation is needed, does the car insurance policy cover emergency accommodation? The price of accommodation could be costly and could have been avoided if the person had thought about this beforehand and made sure the insurance policy covered this, it may be only few extra dollars on the premium per month, well worth it! It is best to think about your situation and what are the basic things you could be covered for by only paying a little extra on the premium per month.
The point of this article is to make sure you understand what you are covered for when you purchase your insurance especially when it is a low cost insurance policy because if something does happen to you and you need to make an insurance claim you do not want to find out that you are not covered for the costs involved when this could have been avoided if it was a common situation and you could have paid an extra $5 per month on your premium and you would have been covered. There in lies the reason why the cheapest insurance deal is not always the best insurance for you.
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