• There is always a company who can do it cheaper!

This photo resonated with me. It has also prompted me to write this article, and what this implication means when talking about Insurance.


This is the same as the quote “If you think it’s expensive to hire a professional, just wait until you hire an amateur.”

I often hear people around me complaining about numerous things, like clothes not lasting long, when the shirt cost them $10 online. Or an inexperienced Tradie not doing something correctly, then costing double the amount to get it fixed.   A cheap Mechanic fixing your car, only for it to breakdown a couple of months later.  Perhaps complaining about a flight being cancelled or delayed, only to understand the booking was with a low-cost carrier (let’s face it  – it’s more than likely your flight will be cancelled or delayed)… The list goes on!

Put simply, the old saying is true: – “you get what you pay for”. The same goes with Insurance.

In relation to the above photo, there are 3 possible scenarios:

  • This client opted for a great price for the work to be done, and jumped at the opportunity with a low cost provider – without consideration of the outcome / consequences.
  • The client did not do any research, such as requesting images of actual artwork or completed work to verify that the skill set of the artist was on par with his expectations.
  • The business who performed the artwork, grossly overestimated their ability, and was not aware of the actual cost.   In this scenario, they have lead the client down a disconnected path between value and cost.

The same can be said about taking Insurance out, or with a “budget / low cost”  Insurer,  who simply doesn’t understand your situation and your needs.

No one likes having to pay for insurance, however, we take out insurance to protect our livelihoods.   We wouldn’t own a business, a house, a car, or have a family if we couldn’t ensure that they were protected.

Suddenly we fall into a false sense of security too –  “our insurance policies haven’t done anything for us – so we should look to get that cost down or just cancel it all together”.

The best case scenario in your entire lifetime, is that you pay for insurance and nothing ever happens. It’s the best product you could ever buy and never have to use.  Trust me. No one should ever have to suffer a loss.

However, you do not want to rely on a “cheap” policy if you do suffer a loss, and need support.

It frightens me that people take risks – and good for you if that risk pays off.   But what happens when it doesn’t? We constantly hear stories about underinsurance, cover exclusions, or people having no insurance cover at all. This is when livelihoods are impacted. Whether that’s yours or someone else’s. That risk is 100% not worth taking – because your luck could change tomorrow.

So… Advice from me – “Don’t choose the cheapest Insurance option – just like a bad tattoo, it could haunt you forever”.

Article written by Citycover’s Marketing Manager.