Ask Our Experts: What You Should Know About Insurance

Why Is Insurance Important? NYCM Experts Explain Why We Insure Our Vehicles, Homes, And Businesses

Insurance is often regarded as a necessary but inconvenient expense; something that we tend not to think about until the time comes to file a claim or make a payment. In some cases, insurance may be mandatory, like when you are registering a vehicle in New York State. In other cases, insurance can be an additional safety net, like coverage for food spoilage in the event of a power outage in your home.

In any case, insurance exists to offer you peace of mind and a financial promise for when life throws one of its many curveballs at you. Without insurance, something as common as a fallen tree branch or a fender bender could lead to serious financial losses.

For National Insurance Awareness Day, we sat down with some of our industry experts to discuss why we have insurance, common insurance misconceptions, and general advice to remember when reviewing your policies this year.

Protecting What Matters Most to You

President & CEO Cheryl Robinson has served in a number of roles within NYCM Insurance since joining in 2001 and has unique insight into the insurance experience, including the perspectives of agents, customers, and employees.

“Most of us see insurance as a necessary evil; something we are forced to purchase in order to drive or buy a house,” said Robinson. “And since we have to buy it, we often don't take the time to understand what we are actually buying—but it is very important to understand the coverage you have and the coverage you do not have. The most impactful experience you will have with your insurance company is at the time of an actual loss. Learning after something has happened that you don't have the right coverage − or enough coverage − is too late and, quite frankly, a hard lesson to learn.”

When it comes to understanding the many options available in purchasing insurance, it can feel like a daunting and overwhelming task. Luckily it is not a journey you have to face alone, and there are many agents and industry professionals who can help you make informed decisions along the way. By taking the time to fully review your options when you first purchase or renew insurance, you may save yourself both time and money in the event of a claim.

“The claims experience can be emotional for a lot of reasons, but the financial burden you may be facing doesn't have to be one of those reasons if you spend a little more time when you are going through the purchase process,” said Robinson. “A cheaper product may mean you are actually just getting less coverage than you may want.”

A One-of-a-Kind Industry

When many people think of insurance companies, the first thing that comes to mind are the many commercials and company mascots that are advertised on our TVs and phones every day. And, in addition to all the marketing strategies insurance companies have carried out, each insurer also creates and offers unique products and services.

NYCM Senior Vice President of Claims Tim Trueworthy explained, “Unlike many other consumer purchases, the decision to buy insurance is often compulsory and mandated by law or as the result of risk mitigation efforts of financial institutions. But very much like other consumer purchases, insurers do make strategic decisions to differentiate themselves from the competition. Understanding the broad range of choices and competitive offerings personal lines insurers have at any given time can be very daunting and intimidating.”

During a time of inflation when most products and services are becoming more expensive, many people are looking for opportunities to save money anywhere they can. And while it’s great to maintain an optimistic attitude, it’s important to remember to be realistic about your coverage needs when purchasing insurance to avoid leaving yourself underinsured.

“While the path of least resistance to reach a short-term goal of obtaining a car or house might seem to be the most appealing, long-term considerations — including the impact to one's financial future should unforeseen accidents or disasters occur — also need to be a part of the equation,” added Trueworthy. “Seeking expertise and advice from professionals should not be overlooked or avoided.”

Learning to Prepare for the Unexpected

Having the right insurance coverage can enable you to breathe a sigh of relief, even in the aftermath of a crisis.

Put simply by NYCM Senior Vice President of Technology Kevin Plows, “When you have worked hard for everything you own, having insurance gives you peace of mind knowing that the people and things that matter most in your life can be protected if the unexpected happens. And when the unexpected happens, insurance reduces stress during those difficult times because you know you have a trusted advisor to guide you.”

Accidents happen, and while no one is excited about filing a claim, having the right coverage can make all the difference in ensuring that your property and livelihood are secure.

Robinson said in closing, “Insurance is complex and each individual has different needs. There is no ‘one size fits all,’ so be sure to reach out to an expert to find the size that is just right for you! It will provide you with an insurance experience that provides confidence and peace of mind from start to finish."