Questions you Need to Ask your Insurance Agent?

Answer 1

http://secdr-images.s3.amazonaws.com/EArticle/Questions_you_Need_to_Ask_your_Insurance_Agent.jpg

Never buy an auto insurance company without asking your insurance agent some vital questions. Here are some of the most basic questions you should ask.

What Discounts am I Entitled to?

Some companies will offer you discounts if you bundle all your insurance policies together. You can also get discounts if you drive a hybrid car. Other will give discounts for younger drivers if they've taken a safe driving course or even for a good student discount' if your child has certain grade point average.

You can also get discounts if you belong to certain professional organizations such as a medical board. There are discounts for safety and security features installed in your vehicle, age discounts, and discounts for low mileage use, just to name a few.

Who is covered by My Policy?

Find how and to what extent that all members of your family and even other users are covered under your policy. You will want to know to what extent you are covered if you have to rent another vehicle if your vehicle is being repaired.

How Much Will be Paid if the Vehicle is Totaled?

You could end up losing a lot of money if you don't ask. Most insurers will only pay the ACV (actual cash value) for your vehicle. ACV is the amount your vehicle is worth after depreciation is taken into account. Some insurers may offer an agreed upon value with an increase in the premium.

Will I be covered if I buy a new car?

Some people replace their vehicle quite regularly. If you plan to do so, you need to know the time limit where the company will extend their coverage as this is a usually limited period.

What about Uninsured (UM) or Underinsured Vehicle Coverage (UIM)?

Make sure you understand the minimum levels of auto insurance in the state you reside as some states do not specifically require that you have this coverage. If the other vehicle is uninsured when an accident occurs, you could be left holding the stick. You may also consider whether to get underinsured motorist property-damage or UMPD. UMPD is cheaper than collision insurance but it has a fixed limit that it will pay out for repairs.

Do I have Both Collision and Comprehensive Coverage?

Collision coverage obviously covers the repair costs of your vehicle regardless of who was responsible for the accident. Comprehensive coverage will cover expenses from events such as the theft of your vehicle, fire or wanton vandalism.