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Which is Better - Over Insured or Under Insured?
Dec 05, 2019
Learn what you need to know to determine the right amount of insurance for you.
Neither is better.
By definition, one is under insured when exposed to risks which would create severe financial hardship. People in this position have chosen to assume risk rather than transfer it to an insurance company.
One who is over insured has more insurance than necessary to respond to risks that would not create a financial hardship.
It’s ironic.
Those who tend to be over insured, may have insurance on items or events for which they can financially afford. They tend to carry low deductibles, and insure personal property for which they otherwise have the means to replace. In the aggregate they spend way too much for protection they could finance themselves.
On the other hand, those who are under insured face exposure to loss of their accumulated assets and income following a catastrophe or unfortunate event. Potential bankruptcy and financial ruin are the result.
Balance is key.
Transfer the risk (insure) for events you can not afford to absorb financially, and self-insure (personally finance) the rest.
Putting this simple concept in place will help you save on your insurance program now and protect from a possible crippling financial loss later.
Would you like to discuss what are the right insurance coverages for you? We here for you. Give us at 607-324-7500, or request a quote online: https://www.ryanagency.com/request-a-quote
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