Would You Rather Save $200 a Year—Or Avoid a $20,000 Mistake?
Everyone likes to save money on insurance.
And on the surface, choosing the cheaper policy can feel like a smart financial move.
But here’s a question worth asking:
Would you rather save $200 a year—or avoid a $20,000 mistake?
Because in insurance, the cheapest option often becomes the most expensive one at claim time.
The “Cheap Insurance” Trap
Many policies look similar on the declaration page.
Your home. Same car. Same driver.
But what you don’t see at a glance are the coverage gaps that can cost thousands later.
Common examples include:
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High deductibles that make small claims pointless
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Actual cash value instead of replacement cost
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Low liability limits that expose your assets
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Missing endorsements for water backup or sewer issues
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Minimal uninsured/underinsured motorist coverage
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Roof settlement limitations
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Cosmetic damage exclusions
These differences often account for that “$200 in savings.”
How $200 in Savings Becomes a $20,000 Problem
Here are real-world scenarios we see all the time:
Scenario 1: The Roof Claim
A homeowner saves a couple hundred dollars by choosing a policy with roof depreciation.
A storm hits. Their $25,000 roof claim gets reduced to a $7,000 payout.
Out-of-pocket difference: tens of thousands.
Scenario 2: The Liability Lawsuit
An at-fault auto accident leads to medical bills exceeding state minimum limits.
The driver is now personally responsible for the remainder.
Savings: $150/year
Exposure: Potentially life-changing
Scenario 3: The Water Backup
A finished basement floods due to sewer backup.
No endorsement on the policy.
Claim denial.
Full cost paid by the homeowner.
The Real Purpose of Insurance
Insurance isn’t a subscription.
It’s not a commodity.
It’s not a race to the lowest number.
This is financial protection for the worst days of your life.
The goal isn’t to save the most money today.
It’s to avoid devastating financial loss tomorrow.
A Better Question to Ask
Instead of asking:
“How cheap can I get this?”
Try asking:
“Where could this policy fail me?”
That’s the question a good agent helps you answer.
The Value of a Coverage Review
A proper review looks at:
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Your assets
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Unique risks
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Your lifestyle changes
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Your future income
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Liability exposure
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The home’s true rebuild cost
Because insurance should evolve as your life does.
Final Thought
Saving money is smart. But saving a small amount at the expense of major protection rarely is.
The real win is paying a fair price for the right coverage.
If you’re not sure what your policy actually covers, a review can bring clarity—no pressure, just information.
And sometimes, that clarity is what helps you avoid the $20,000 mistake.