Os Low Cost Insurance is designed to help families save money. The coverage of these products only covers the essentials and minor capital restrictions. Many people wonder if these low cost insurance plans are a good option to protect themselves. Before making a decision, each individual or company must weigh the pros and cons and choose based on their needs and ambitions.
The benefits of low cost insurance
• Low price
There are low-cost insurance with many insurers, hence the competitive market ends up generating benefits for customers. To differentiate themselves from the rest of the market players, companies have lowered the prices of the products they sell and have promoted campaigns that attract consumers. They do this, as a rule, at the expense of reduced seasonings and not capital insurance .
• Flexibility
Contracting low-cost insurance is generally done using forms and the policyholder can only choose the coverage that interests him. You don’t need to buy a coverage package that doesn’t make sense to you and pay more for it.
• service convenience
To adhere these products can, with many insurers, be done online or over the phone. All the necessary operations are available, quickly and intuitively, in the customer area . In this way you avoid the costs and waste of time to go to the agency. In this sense, it should be noted that some low-cost insurers do not have physical spaces, so contact with customers is only done remotely.
• Diversity
In the low-cost insurance market, there is a greater variety of modes and very specific coverage cases. Take for example an auto insurance policy where there is a policy for women only, for drivers over the age of 60, or for customers who have never been in an accident.
• Special offers
The stiff competition between insurers is motivating discounts and offers of tangible goods and other benefits. Hotel vouchers, gifts, fuel discount vouchers and free insurance periods are some examples that we can find in the market.
How to evaluate if cheap insurance is a good option?
To determine if there is an advantage in buying low-cost insurance, it is necessary to define the level of risk that you intend to insure and see if the coverage of a certain offer meets that need.
The tendency of many clients is to analyze the amount that will be saved at the end of the month or year. But is this enough?
While the value of the prize is low, cheap insurance that is worth the money can get damaged. As you define the coverage you want, shop around and shop around to get a quote that fits your situation.
Does a lower premium make up for the reduction in coverage?
For example, a low-cost version of auto insurance includes the basic coverages required by law: civil liability, legal protection, personal injury, and travel assistance. However, you may not have much of an advantage when it comes to changing vehicles, for example. Therefore, if this is an important condition for you, you should consider whether low-cost insurance can cover the costs that you may incur when renting a car.
Low-cost health insurance guarantees basic access to private health care. Typically, these products include modules such as hospitalization/confinement, outpatient care, dentistry, and exams. But naturally they do not include optics or delivery, for example. Attention should also be paid to the size and quality of the provider network.
These are just two examples that show that insurance should not be purchased without a weighted cost-benefit analysis on a case-by-case basis. What is essential for one family may be superfluous for another and therefore dispensable. It should be noted that the broader the coverage of the policy, the more expensive it tends to be. annual award.
Are low cost insurance companies reliable?
The assurance of the financial soundness of an insurance company is evaluated by the Superintendency of Insurance and Pension Funds (ASF). This entity regulates and supervises the operations of insurance companies to guarantee the protection of the insured, insured, participants and beneficiaries.
In this sense, no problems have been reported among companies operating in this industry in Portugal, so all insurance companies authorized to operate are considered reliable.
Low-cost insurance is a bet by many companies to win customers. Even so, when contracting, the client must be aware of whether the insurance, being cheaper, is better suited to their needs.
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