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  • Writer's pictureSDL Insurance Solutions

Buying Insurance is Still Best with the Advice of an Insurance Agent

That’s right, buying insurance is an important decision

Insurance is an essential component of our economy. Why is this you might ask? Insurance provides security to all of us equally, from the largest corporations to the smallest of family units. It’s such a significant piece of our economy that there is a need to regulate insurance  providers so there are rules and structures in place to promote the public good and reduce insurer insolvency.

Not all insurance is the same though, there are value and discount brands. Since price is the easiest thing for consumers to understand, many insurance advertisers and sales agents continue to promote price in advertising. This leads consumers to believe all insurance coverages aren’t different from one another, despite the insurance agent or carrier they use. They believe it’s merely a set of restrictions, deductibles and premiums.

However, that’s not the case. Not all insurance carriers or policies are the same. In reality, there can be huge differences in the amounts of coverage offered. The differences between two insurance policies is not necessarily in the limits of liability or the deductibles offered, the difference is likely in the policy language. The policy language is what controls when the limits of liability or coverage will be extended.

An insurance policy has all kinds of definitions, exclusions, obligations and conditions. Your policy can be written broadly, providing more coverage, or narrowly to reduce the amount of coverage offered. Many consumers often select lower priced policies without understanding certain differences in the coverage offered, which typically leads to disappointments when insurance is needed.

Should I buy Insurance online?

It’s relatively easy for consumers to purchase insurance online without an understanding of the differences between insurance contracts. Understanding the differences between insurance contracts and coverages is really what matters. There are also many differences between one insurance agent to the next, so they are not all the same. Without a good consultation, it’s very easy to make a bad decision due to the differences.

In days past, insurance was sold one-on-one. The insurance agent would actually come to the home, conduct an inspection, explain the coverage and review the application. The ways of the past might not be coming back, but a good consultation can still be done, whether in person or online.

A good consultation is very important

It’s important for an insurance agent to explain the exclusions and conditions of your insurance policy. You need to know the way the policy language extends and limits coverage. You need to know where there may be gaps in coverage and how those gaps are covered by other types of insurance policies. The pages of your policy are filled with a bunch of possibly confusing insurance lingo making it somewhat difficult to understand, but your agent should always be available to explain your policy to you and answer your questions.  Your agent should also understand your financial situation because it’s difficult to select the right level of coverage without the understanding of the assets at risk.

So, if you aren’t taking the time to understand what you’ve purchased and your insurance agent isn’t providing you a complete consultation, what’s going to happen? You’re more than likely to be disappointed with your insurance coverage.  This is why we maintain a consultative approach at SDL Insurance Solutions, we take the time to make sure our clients understand how their coverage affects them in as many scenarios as possible.


Insurance is an intangible good, one we never intend to use, which makes it easy to make insurance buying decisions based on cost. This is especially true if you don’t fully understand the difference in the actual coverage you may or may not be receiving. It’s advisable to work with a professional and get a full consultation to make an educated decision. Many insurance agents will give you a fair assessment of the policies you may be considering and if you need help with understanding your coverage within the Illinois and Wisconsin area, we'd be willing to help.

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