Auto Insurance Checklist
If you are anything like us, life is already too busy to take on anymore tasks, so here is a simple set of questions you can ask your independent agent or direct insurance carrier to determine if you are properly covered at a reasonable price.
If you are denied answers to any of these questions, or the person you are speaking with seems evasive, remind them that you are knowledgeable about the process and are more than willing to take your business to a company who has the time to work with you. Keep in mind, as with any other type of business, insurance companies and independent agents get paid on volume.
On to the questions:
• What are my liability coverage limits (each person, each occurrence, and property damage)? If you have made any large purchases, a home for example, you may want to increase your limits to at least $300,000 per occurrence. This will protect you from losing it all if you are found liable for damages that supersede your current limits.
• What would it cost me to increase my limits to the next highest available?
• Do I have Med Pay or PIP coverage?
o If yes, what are my limits?
• Do I have physical damage coverage on my policy?
o If yes, do I have Comprehensive, Collision or both?
o If yes, what is my deductible?
o If yes, what would my rate be if I lowered or raised my deductible (remember it’s best to have the highest deductible you can afford, which should lower your rate overall)?
o If no, what would it cost me to get one, the other, or both?
• Do I have uninsured motorist coverage (UM)?
o If yes, what are my limits and deductibles?
• Do I have underinsured motorist coverage (UIM)?
• What are all of the possible discounts available to me? Be sure to have them all listed for you so you can determine which you qualify for. Also, compare the answer to the list provided on this website. Don’t be shocked if the company you deal with doesn’t know your background very well!
• If you own a home, ask if your insurer or the insurer your agent wrote your policy with also offers homeowners or renters insurance, which should entitle you to a discount.
If you purchase insurance from a direct company, also ask the following questions:
• What is your company’s A.M. Best and Standard & Poor rating?
• When was your company’s last rate revision in your garaging territory? Remember, similar to a mortgage, you don’t get the benefit of a price decrease mid-term!
• Also, do yourself a favor and get a quote from a different company for comparison purposes.
If you purchase insurance through an independent agent, ask this additional set of questions:
• What carriers or companies do you represent?
• Which companies are the quotes you provided from?
• Can I see a copy of all of the quotes?
• What type of insurance does your agency specialize in?
• What is the A.M. Best and Standard & Poor rating of the company you wrote my policy with?
• When was the last time you “shopped” my policy for a better rate?
• When was the last time you “shopped” my policy for better coverage (higher limits) at the same rate I am paying now?
• Does the insurer you placed my policy with have good/responsive claims service? If you asked simply for the lowest available rate, your agent may have placed you with a less responsive carrier.
• If you are feeling frisky, and you should be, ask what your agent’s commission is on your policy. Remember, each insurer pays a different amount, and in some instances your agent may place you with a carrier that pays more money to them, even if it isn’t the best option for you (this is very rare, but it’s better to be safe than sorry).