Insurance often starts with an attempt to protect something from financial surprise, namely a family’s budget, a house or business, or a vehicle. Though insurance decisions don’t have to be complicated, the terminology and concepts can be difficult to understand at times and you may not always know what questions to ask.
Identifying What Needs Protection
Instead of a generic web form, call an agency and talk to a professional about your insurance needs. If you’re looking for an insurance agency in Longview TX, speaking directly with a local professional can also help you understand which coverage options fit your particular circumstances. You may be surprised at how different that experience is. It’s more interactive, and can yield more personalized results. Before calling to talk to an agency, though, take some time to figure out what needs to be protected and how. You won’t need to have encyclopedic knowledge of your assets, but some advance preparation will help you get started.
- Are you insuring one vehicle or several? Who drives them regularly?
- If it’s homeowner’s insurance, do you own rental properties or valuable items that need to be included in the policy?
- Business insurance policies can cover many different kinds of assets, including business equipment, inventory, and liability coverage. Be prepared to explain what your business does and what may need to be included in a policy.
- Life insurance, boats and snowmobiles – other insurance options may be a priority for you.
Looking Beyond the Monthly Premium
It may be tempting to focus on the lowest monthly payment, but make sure you understand what you’d pay out-of-pocket when making a claim. A $1,000 deductible may not be a big deal for some policyholders but could be a source of financial hardship for others. Before signing on the dotted line, make sure you understand what the deductible is and how it applies – more info at https://www.iii.org/article/understanding-your-insurance-deductibles:
- What would I have to pay before insurance kicks in?
- Does the deductible change for different kinds of claims?
When comparing policies, dig a little deeper to learn what’s covered and what isn’t. Two policies may sound very similar, but one may pay more for a rental car after an accident, or cover water damage from certain natural disasters. Some policies provide additional benefits others don’t, like roadside assistance, or replacement cost protection. Ask questions like:
- If I have an accident, who’s going to pay for my rental car? How does your company work with repair shops?
- Am I going to have to pay to repair/replace my property?
- How does this policy treat depreciation?
- If someone else gets injured as the result of an accident involving my vehicle/home, what level of liability protection does my insurance provide? Will the policy adequately protect all of my assets?
- Are there discounts available, whether for payment options, combining policies, or safety equipment?
- What factors affect my rate? Are discounts available for no accidents/losses and certain payment options?
Questions Worth Asking During a Policy Review
It’s not just new policies that can raise questions. Most policyholders (click this page) pay close attention to the nitty-gritty of their insurance policies only after a car accident, a stolen bike, or a house damaged by a storm, when changes to the policy are no longer an option. That’s why it’s important to review insurance policies on a regular basis, and not just when buying a new policy. Ask questions like:
- What is required by contract/law vs. what protection is voluntary?
- Are there exclusions I should understand?
- If a family member/contractor caused damage, is that going to be covered?
- What liability protection does my insurance provide? If someone was injured on my property or was in an accident with my vehicle, will that be adequately covered?
- Are all of the details up-to-date on the policy? Phone number, address, etc.
Also find out how claims are filed before you need to submit one. Determine if damage must be photographed before making emergency repairs, which receipts to retain, and if you’re required to report your loss within a certain timeframe.
A photo or video inventory of your house and business contents helps you locate items that were damaged and submit a claim. Store your policy number, agent information, and proof of high-value items in a secure place off-premises.
When Should a Policy Review Happen?
There may not be a better time for a review than when renewing your policy or after life changes. Getting married, having a new driver in the household, making home improvement projects, starting a small business, or other changes all affect the ideal insurance policy. A quick review with an insurance professional will help make sure there are no gaps in coverage, and that outdated information gets updated.
Before You Request a Quote
- Grab the declaration’s page of your current policy.
- Make a list of changes that have occurred (new vehicle, business expansion, remodeling a home, new baby, etc.).
- Write out a few questions to ask when you speak with us.
