4 questions to ask your agent about auto insurance

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Your agent can answer you auto insurance questions.

Not all automobile insurance policies are the same. When you’re shopping for auto insurance, ask your agent questions about coverage BEFORE you buy. You will have peace of mind that your car and your passengers are protected, reducing the chance of unwanted surprises should you have a claim.

 

Here are some questions you might want to ask:

    1. My state requires me to show that I have a minimum amount of insurance whenever I renew my driver’s license. Am I covered? Your local, independent agent understands the minimum coverage requirements in your state and can assure that you meet those standards. However, you may want to consider that many state minimums are quite low and may not protect you from the financial consequences of a serious accident. If you have an auto loan, your lender may require additional coverage on the car. Ask your agent to advise you about an appropriate amount of insurance for your situation.
    2. I recently bought a brand new car. I have heard that the car depreciates as soon as you drive it home, and that in the event of a total loss, insurance may not pay the entire value. What can I do? Ask your agent about how your policy pays in the event of the total loss of a new vehicle. Some policies include coverage to protect you from the gap between the depreciated value and the cost of a new vehicle and provide replacement cost for qualifying vehicles. If your policy does not include this coverage, ask your agent if you can purchase gap coverage for an additional premium. (Read our related blog: How to keep that new car feeling alive.)
    3. What is uninsured and underinsured motorist coverage, and do I need it? Uninsured motorist coverage may pay for damages arising from bodily injury to a covered person when another driver is legally responsible for the auto accident and does not have liability coverage, or their liability limits fall below state minimum requirements. Underinsured motorist coverage may pay for damages when another driver is legally responsible for the accident but has liability limits lower than those on your policy. Ask your agent to advise you, about financial protection for these situations. Medical and repair costs have been increasing in recent years and could quickly exceed your financial resources. (Read our related blog: 7 coverages to look for in an auto policy.)
    4. How can I save money on my auto insurance premium? One option is to choose a higher deductible. The deductible is the amount of a loss that you are responsible to pay for yourself. If you can afford a higher deductible through savings or other resources, you can often save on premiums. Your agent can help you find the right balance.

Coverages described here are in the most general terms and are subject to actual policy conditions and exclusions. For actual coverage wording, conditions and exclusions, refer to the policy or contact your independent agent.


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17 Responses to “4 questions to ask your agent about auto insurance”

  1. Kairi Gainsborough

    I didn’t know that you brand new car can lose it’s value so quickly. Asking an insurance agent about coverage for depreciation is a good idea. It would be terrible to wreck your car right away, but being fully covered would make it less painful.

  2. Bob Lowe

    Thanks for the post. I think question 2 is a great question. I am in the market for a new car, and this is something I wondered about. It’s is good to know that some insurance companies will cover depreciated value. This will be a great question for me to ask when looking for car insurance.

  3. Kyle Wayne

    Thanks for sharing these questions that I should ask my auto insurance agent. I like the last question that you shared “How can I save money on my auto insurance premium?” and I will have to ask it. I want to get a reasonable deal on my insurance and I think this post will help me accomplish that goal!

  4. Gregory Willard

    I think it’s interesting that a higher deductible can help you save on premiums. I have always tried my best to have a premium that will cover any damages that I end up causing. I will have to look at my policy and see if a higher deductible is available.

  5. Maggie Allen

    These are some really great questions to ask your auto insurance agent! Although I don’t have insurance now, I plan on getting some as soon as I have enough money to buy a car. When I find a company, I’ll be sure to ask about the depreciation of a new car. After all, the car I’ll be getting will be new, so that is very pertinent to my situation! Hopefully the company I pick will have some great gap coverage.

  6. Jay Jorgenson

    I love all of these suggestions. Insurance is sometimes a tricky game if your not aware of what is in your policy. I think it is a good thing to maintain frequent contact with your insurance agent because they are the experts of insurance. I think it is important to note what uninsured motorist coverage is. It will help you out so much when an accident happens and the other person doesn’t have insurance.

  7. Keith Balsiger

    Yes very important questions to ask your car insurance agent!

  8. Jen Pack

    My husband and I just got married, so we are in need of our own auto insurance. I like how you point out that auto insurance agents can advise you about how much insurance you need for your situation. I didn’t realize that different situations warranted different amounts of coverage. I imagine that it would also be wise for us to talk to others who have been in our situation in the past. They probably have done some of the same searching we will need to do and will be able to point us in the right direction.

  9. Scott

    I like that you point out that your agent can help you find the right balance between having a higher deductible and saving on premiums. I can see why it would be a good idea to think about what financial situation you are in and what best fits. My brother just bought his first car and will be needing to get insurance. I’ll have to make sure he talks with his agent about the best plan for him.

  10. Nick Fransioli

    This is great information about insurance it is very interesting how insurance varies so much depending on so many variables.

  11. John

    These are all really good questions to ask to make sure you are getting the auto insurance that best suits you. In addition to saving money on your premium through a higher deductible, I heard that if you are a student like me you can actually qualify for certain discounts due to your GPA. Is that true?

  12. Luke Smith

    Thanks for pointing out the importance of asking your auto insurance agent about uninsured motorist coverage. I imagine that many people wouldn’t think about the need for that, but if you were involved in an accident with someone who had no insurance then that coverage could really save you. I would think that it would be a good thing to ask about and see what steps your agent can help you take to secure the additional coverage without raising your premium too much.

  13. Dave Anderson

    I agree that before choosing a car insurance plan, it is important to make sure that you know what you’re getting. I know that a lot of the time there are also deals going on at the company that you are thinking about choosing for auto insurance. It never hurts to ask if there are any deals going on to save some money. If there are deals available, you should make sure that the coverage that they offer is what you want.

  14. Bernard Clyde

    I hadn’t thought of the issue of insuring a vehicle that will depreciate in cost and wondering if that cost would be covered if the car was totaled. It is good to know that some policies cover the depreciation gap. Yet another good reason to know the right questions to ask our agent!

  15. Ben Allen

    Thanks for the information on questions you should ask your auto insurance agent. I agree that it is important to ask your agent if you can save money on your premiums or not and how you could actually save. I would imagine that a lot of money can be saved through car insurance, but people just aren’t aware or don’t know how to save.

  16. Jenna Hunter

    My husband is going to be getting a Telsa this summer and we need to get insurance on it since it is not insured yet. It was really beneficial to learn from the text that one should Ask your agent about how your policy pays in the event of the total loss of a new vehicle. As we get closer to purchasing the car we will be sure to keep that in mind to get the best coverage!

  17. Rachel Lannister

    Thank you for the great blog. My brother needs to find insurance, but he had no idea how to choose it. You mentioned that you should make sure you know how well the insurance company will cover if your car will to ever be completely destroyed. My brother did just get a new car, so if he could drive knowing that he is well covered it would give him peace of mind.

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