Next time you’re reviewing, renewing or buying insurance, ask your agent the questions below to get the right coverage for your home and vehicles at the right price. Talking with your insurance agent can also prevent surprises down the road. Check in with your agent at least once a year.
- What discounts do you offer? Among the many discounts most insurance companies offer are those for safe drivers and students with good grades. You’ll also generally save money by buying more than one policy from the same company – such as a car and a home policy.
- What are my deductible options? A deductible is the amount of money you pay on a claim before you receive payment from your insurance company. You will need to decide what amount works best for you. Typical deductibles are $500 or $1,000. The higher your deductible, the lower your premium (the cost of the policy).
- If I have an auto accident can my rates go up, even if it’s not my fault? Because policies vary, ask under what circumstances your premium will be impacted.
- What will I get paid if my car is totaled? This is important to know. If you have an older car with a low market value, the cost of collision and comprehensive insurance may outweigh the benefits.
- Will my homeowners insurance cover all disasters? Standard homeowners insurance covers disasters such as fire, lightning, theft, vandalism, or damage from smoke, water or wind. It does not cover damage caused by floods or earthquakes. Insurance to cover those events can be purchased separately.
- What are the coverage limits on items like jewelry, art, or other expensive items, if they’re stolen or lost? Ask your agent to walk you through the special limits of liability for personal property for the policy he or she recommends. Consider purchasing more coverage through endorsements for high-value items.
- What is the maximum amount of liability my homeowners policy will cover? There is a range of liability limits to suit most needs. Factors you may want to consider are your net worth, the potentially risky activities you and your family engage in, and the amount of asset protection you want should you be pursued in a lawsuit.
- Will my possessions be covered if they’re lost or stolen outside of my home? Most policies will cover things like jewelry or other expensive items that are stolen from your car or stolen or lost while traveling – up to a limit. Your policy may also cover your children’s belongings if they live in a dormitory during their college years.
For more information on auto, homeowners and other personal lines of insurance, contact your local AAA office.
