That cheap insurance rate might look good … until you file a claim… and it all goes wrong.

Too often, cheap means inadequate limits, missing protection, and zero help when it counts. Let’s focus on real savings … not nearsighted shortcuts that can wreak financial havoc.

Saving money on insurance is a reasonable goal. But chasing the cheapest option? That’s where good intentions can backfire.

Insurance is about sharing the potential financial burden of unexpected events with a larger group of people (risk transfer). It's not just about cutting costs. When the focus shifts to slashing prices at the expense of sharing these potential losses, you could be taking on far more risk than you intended.

What “Cheap” Can Mean

When a quote comes in well below the rest, it’s worth asking: What’s missing? Cheap coverage is rarely a better deal—it’s often a stripped-down version of the protection you actually need.

Common trade-offs include:

• Lower coverage limits that fall short in a severe loss.
• Fewer included coverages or endorsements.
• Higher deductibles set without strategic planning.
• Weaker claim response or service infrastructure
• Minimal agent involvement or guidance

It’s like buying a car with worn brakes and bald tires—cheaper, sure, but not something you want to discover when it’s too late.

A Real-World Look: When Saving $150 Costs You $150,000

An Auto Insurance Example: Let’s say a client chooses a bare-minimum liability auto policy with no physical damage or rental coverage to save $150 a year.

Six months later, they’re at fault in a crash. The other driver is hospitalized, and their car is totaled. Because their coverage was limited:

• Their policy only covers a fraction of the other driver’s medical bills
• Their vehicle isn’t covered at all
• They have no rental reimbursement and no transportation for two weeks
• They’re now named in a lawsuit and facing thousands in uncovered costs



That $150 savings? It cost them their savings account, possibly garnishment of their wages, and their good credit for years to come.

A Homeowners Insurance Example:

To save money, a homeowner selects a policy based on Actual Cash Value instead of full Replacement Cost Coverage. It trims their premium, but no one thoroughly explained what they were giving up.

Then the unthinkable happens: a fire. The home is a total loss.

But instead of a claim payment that covers the full cost to rebuild, materials, labor, code upgrades, they receive a payout based on the home’s depreciated value. It’s not even close to what it takes to start over.

They now face:

• Tens of thousands of dollars in out-of-pocket rebuilding costs
• A loan or second mortgage just to finish the reconstruction
• The emotional toll of being displaced, underprotected, and overwhelmed
  
  

The small savings on the front end turned into a major financial burden when it mattered most. And worse, it could have been prevented with the proper coverage guidance and a focus on value over price.

BTW… we recognize that there are circumstances where replacement cost coverage is not available, or the home does not qualify. However, when this type of coverage is taken to save a few dollars, the results can be financially devastating.

What “Savesmart” Actually Looks Like

At The Ryan Agencies, we believe in lowering premiums the smart way, without putting you at significant financial risk. That means:

• Choose the highest deductible you can reasonably afford to lower your premium while protecting against significant losses.
• Avoiding unnecessary small claims helps protect your long-term rates and insurability.
• Using strategic bundling to earn multi-policy discounts.
• Paying in full, when possible, for an immediate discount.
• Understanding your options, don’t just click the lowest price.
  
  

The Great 8 Savesmart principles aren’t about cutting corners. They’re about implementing strategies that leverage your insurance for the long term.

Coverage You Didn’t Know You Lost

Even low-priced homeowners' policies often quietly exclude coverage for common, costly risks. Examples include:

• Water backup in basements or crawlspaces.
• Identity theft restoration and cyber fraud response.
• Personal liability for that unexpected injury that happens on your property.
• Scheduled coverage for valuables like jewelry, collectibles, or tools.
• Coverage written on an Actual Cash Value basis instead of Replacement Cost. Meaning you receive a depreciated payout, not what it takes to replace the item or structure.
  
  

When those exclusions surface after a claim, there’s no “undo” button.

Cheap Doesn’t Mean Customer-Friendly

Low-cost carriers often cut service corners too:

• Limited hours or slow claims processing
• No local agents or personalized advice
• Difficulty getting answers when you have a billing or claim issue
• One-size-fits-all coverage with little room to customize

At The Ryan Agencies, you deserve Insurance Protection You Can Rely On. That includes a human being to talk to, year-round support, and advice that fits your needs.

Cheap Doesn’t Reward Smart Behavior

Smart clients often take steps to reduce risk, yet cheap insurance rarely rewards that effort. A quality insurance plan should recognize and reward:

• Bundling home, auto, and other policies.
• Loyalty is shown by companies that take a long-term view of your claim history.
• Completing the Defensive Driving Course offers discounts.
• Maintaining and Improving your credit/insurance score (a significant factor in rating for many policies).
• Choosing higher deductibles as part of a thoughtful risk strategy.

The right policy doesn’t just save money, it creates long-term value.

Don’t Confuse Affordability with Value

Before picking the lowest quote, ask:

• What coverage am I giving up for this price?
• Is this quote using the proper limits and deductibles, or just default settings?
• How well will this carrier respond if I need help?
• Do I have an advisor helping me, or am I on my own?

Price matters—but only if the coverage works when you need it.

Closing Thought: Protection That Stands Up, Not Falls Apart

Everyone wants to save on insurance. The key is doing it the right way.

Cheap insurance often collapses under pressure. A program built with Savesmart strategies—backed by thoughtful guidance, solid coverage, and a reputable company - doesn’t just save you money. It helps transfer risk where it belongs.

That’s the kind of Insurance Protection You Can Rely On.

Next Up: Part 3 – The Ceiling You Don’t Want to Collapse

A practical look at coverage limits, why they matter more than most people realize, and how the wrong limit can lead to a financial disaster

Together, let’s build value…

Call, visit, or see RyanAgency.com for Insurance Protection You Can Rely On.