Top Questions to Ask an Insurance Agent Before Buying Any Policy

Purchasing insurance is not simply a matter of choosing the lowest-priced option. Buying insurance is about making sure that, should an event take place that affects your circumstance, your insurance policy actually provides protection.  The important questions to ask ahead of time are whether auto insurance, life insurance, or even home insurance can save you from expensive problems or surprises later on.

Here are two of the most important questions to ask your insurance agent prior to signing a contract.

1. What Does This Policy Cover, And Not?

Most insurance policies have limits and exclusions. Home insurance will typically not cover flood damage, and some auto insurance policies do not cover rental cars. Tt can be very useful to confirm with your insurance agent exactly what is and isn't coverage.

2. What Determines Your Premium And Deductible?

Every insurance company has a different way to determine your monthly premium and deductible based on the type of coverage you have. For car insurance, your driving history, vehicle, and even location can be considered for your rate. For life insurance, your age, health, and lifestyle can be relied upon for rate calculations. You should ask your insurance agent what determines the premiums and what deductible is reasonable to you financially.

3. Are There Any Discounts?

A lot of businesses provide discounts, but they might not necessarily be stated. Combining your home and auto insurance, driving safely, or having safety features in your house could help reduce your premium. Don't hesitate to ask your insurance agent to review all characteristics of your policy that might qualify you for a discount.

4. How Do Claims Work With This Policy?

This may be one of the most crucial questions: What will happen if you actually have to use the insurance? Ask how claims are processed, what documentation will be needed, and how long the process typically takes to pay out. A policy with a great premium may not be worth it if the claims process is a real pain.

​5. Is This The Right Coverage For My Current Situation?

Your insurance needs will change. The insurance policy that worked when you were single may not work when you have kids or buy a house. Ask your agent if the quotes you are reviewing are appropriate for the stage you are at NOW in your life. A good agent will offer a point-of-view that is less about price and more about value, factors beyond the money spent for your policy.

6. What Can I Do If I May Want To Switch Policies In The Future?

You’ll want to have flexibility. Talk to your insurance agent to ask if there are penalties or fees involved with a policy change or cancellation. This applies more to life policies because of the typically longer commitment.

Final Thoughts

The right insurance agent should be a trusted advisor and not just someone who simply sells. By asking these questions, you’ll not only be better educated about your coverage, but you will also have an insurance policy in place to protect your most valuable assets. This includes time; take your time comparing quotes, options, and policies, and find a policy that provides you coverage and peace of mind.