Important Questions

What Are Some Important Questions I Should be Asking My Car Insurance Broker or Agent?

Most insurance policy applications can seem overwhelming with the number of questions you're required to answer. Insurance carriers want to evaluate you as a financial risk, and understandably so. However, you have just as much incentive to evaluate any potential company or policy, and there are a few questions you should ask as soon as you get the chance.

What exactly does my insurance cover? Know your coverage, inside and out. If you can't answer this question yourself, grill your agent for answers until you can. The extra effort will be worth the lowered stress in case of an accident.

Who exactly does my insurance cover? Make sure every driver in your household is covered by the policy, and see how difficult it will be to add new drivers as your kids get their licenses.

How and to whom do I report in case of an accident? Some insurance carriers have very specific regulations regarding how and to whom you report in case of an accident. Some may require you to report any and all incidents, while others simply ask for proof that you notified the police for any accidents involving another vehicle. Regardless, know what your company expects of you.

How much will my insurance go up in case of an accident? Become familiar with how your company will raise your premiums if you are in an at-fault accident. Some insurance carriers have forgiveness policies, while others are stricter with repeat offenders.

What discounts do I qualify for? Investigate the kinds of discounts your agent can provide. If you put only a limited mileage on a vehicle, you may qualify for a reduced premium. The same is for those who have had a long record of no traffic incidents, or even good students. Other discounts are offered for those who install tracking devices on their vehicle or take other precautions.

How may I further lower my premiums? Find out the ways you can find the lowest premium that meets your specific needs. Consider raising your deductible or eliminating unnecessary comprehensive coverage, if desired.

How will changes to my situation affect my policy? Ask how getting married will affect your premium, or how much of an increase you'll suffer if you add additional drivers or vehicles. Ask about cancellation policies and other considerations, and know how changes in your life might affect your rate.