Eight Questions to Ask Your Insurer

Insurance can offer peace of mind – but before buying a new insurance policy or renewing an existing one, check with your insurance agent to make sure you have the right coverage at the best price for your vehicle and your home.

“Asking a few simple questions to make sure you understand your coverage options could make a big difference if a disaster occurs,” said Chrissy Hall, with AAA South Jersey.

Not sure where to start? Here are eight questions to ask your insurance agent:

1. What discounts do you offer? Some insurance companies offer discounts for students with good grades, while others provide discounts for buying more than one policy – such as an auto and homeowners policy – from the same company. Find out what discounts you might qualify for.
    
2. What are my deductible options? Your deductible is the amount of your claim that you pay before receiving payment from your insurance company. Deductibles typically vary between $500 and $1,000, and the higher your deductible, the lower your premium (the cost of your insurance policy). Talk with your agent to determine the balance that works best for you.
    
3. Will my rates go up if I’m in an auto accident, even if it’s not my fault? Policies vary, so be sure to ask how your premium will be affected under different circumstances.
    
4. What happens to my car in a collision? Don’t assume the cost of replacing or repairing your car will be covered if it is damaged in an accident. You may want to consider adding collision coverage (which protects your vehicle, regardless of fault) or comprehensive coverage (which covers physical damage not caused by a collision, such as damage from a falling tree). Before purchasing, ask about the value of your car; if you have an older vehicle with low market value, the cost of collision or comprehensive coverage may outweigh the benefits.
    
5. What disasters does my homeowners or renters insurance cover? A standard homeowners policy will cover disasters such as fire, lightning, theft and vandalism – up to your policy limits. Damage caused by a flood or earthquake is not covered in a standard homeowners or renters policy. Talk to your insurance company to find out if you should consider purchasing separate policies or endorsements (depending on your state) to cover these disasters.
    
6. What are the coverage limits on expensive items such as jewelry or art, if they’re stolen or lost? You may want to consider adding more coverage through endorsements for high-value items.
    
7. Will my possessions be covered if they’re lost or stolen outside of my home? Up to a limit, your policy may cover items if they’re stolen from your car or lost while traveling. If you have a child living in a dorm at college, your policy may also cover their possessions.
    
8. Do I have enough liability coverage? Work with your insurance agent to determine the right amount of liability protection to fit your needs.

For more information and to ensure you have the insurance coverage you need, call your AAA insurance agent or insurance customer service, or visit your local branch.