Companies that specialize in providing low-cost insurance policies have grown in number and popularity in the last few years. Online services and build-your-own-policy features have convinced millions of customers they're getting a good deal.

But it doesn't take long for some customers to find out the deal might not have been as great as they thought.

You Do Get What You Pay For

"My husband and I switched to [a popular online insurance company] because of their apparent low rates," an anonymous customer posted on automobileinsurancereview.com. "On our first renewal, they raised our premiums over 10%. When I called to ask why, I was told you get a discount the first time you sign up, but then every renewal is increased."

It's true that every insurance company gets complaints, and you have to take anonymous, online posts with a grain of salt. But you can't expect to get superior coverage and full service at a discounted rate. In fact, that's the biggest danger of doing business with low-cost insurance providers. Most customers aren't aware of the gaps in their coverage until they file a claim and are denied coverage.

Is It Better To Pay More?

But doing business with a large insurance company isn't always the answer either.

"I had [a major insurance provider's] auto insurance for 25 years with a perfect driving record," David Martin posted on a corporate complaint site. "Yet they kept raising my rates, and when asked, refused to lower them. Also had a homeowner's policy with the same company until recently. Found that they had been charging me 40% more than other comparable major carriers, and my agent never caught the mistake after six years."

David probably had great coverage, but as he pointed out, he was paying too much. And his agent was no help since his loyalties were with the insurance company rather than the customer.

So What's The Answer?

Independent insurance brokers work with many insurance providers and can shop for the best coverage at the best prices to find a real deal for their customers. And, instead of being loyal to the insurance company, a broker looks out for his customers and lets them know when a better policy or a better price is available.

Dave's insurance Endorsed Local Providers (ELPs) are all independent insurance agents who can find home, auto, health, and even long-term care and personal liability insurance coverage that fits your budget. Dave's ELPs will give you the same great advice about your coverage that Dave would. Contact your ELP today!