Whether you are looking for your first insurance policy or fifth, you should be prepared to ask your insurance agent the proper questions. Having the wrong coverage is almost as bad as not having insurance at all, so it is crucial to ask the right questions and get the right insurance.
1. How Much Insurance Do I Actually Need?
Not everyone’s car insurance needs are the same. Do you have a new car in need of full coverage auto insurance? Or do you have an older vehicle that can get away with minimum liability insurance? Most insurance agents recommend full coverage car insurance for the majority of clients. This is because full coverage will offer the highest amount of coverage for your vehicle, but this may vary depending on your vehicle.
2. Who is Covered on My Policy?
As the policyholder, you will automatically be the insured driver on your vehicle. But insurance can get complicated if you have multiple people sharing a car, or if you have a family member you want to add to your policy. Ask your insurance agent about the pros and cons of adding another person to your policy. In general, adding someone else can raise your rates—especially if you’re adding a teen driver. On the other hand, insured drivers listed on your policy will generally have the most coverage.
3. How Much is My Deductible?
Your car insurance deductible is how much you will pay out of pocket when you have to file a claim. This amount can change depending on your policy. When you file an insurance claim, you will have to meet your deductible before receiving compensation. Choosing a higher deductible can actually save you money on monthly premiums, but this also means that you will have to pay more out of pocket before receiving compensation for a claim.
4. How Can I Save Money?
Of course, car insurance can be expensive. It is important to make sure that your insurance agent is working to save you the most money possible. Compare quotes before signing a policy and ask your insurance agent about possible discounts you may qualify for. Many insurance providers offer discounts such as mature driver, loyalty, new driver and bundling discounts if you insure your car and your home with the same provider. Other discounts may be available as well.