7 Questions You Should Be Asking About Your Insurance Policy

Julee Russo By Julee Russo, 22nd Feb 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/yj.utrq2/
Posted in Wikinut>Money>Travel & Transport

Choosing the right car insurance policy can be complicated, but here are 7 questions you should always ask when comparing quotes.

Know the Questions

Selecting a car insurance policy that is right for you can be a long process. Car insurance can be an expensive outlay at the best of times, let alone if you rush into an agreement with the first provider you come across. Asking some of the following key questions will help you find the right provider and walk away with an agreement that is beneficial to you.

What kind of insurance agent are you dealing with?

There are many different types of insurance agents, and making sure which kind you are dealing with may save you money. A captive agent usually only deals with quotes and prices from one provider, which may limit your pricing options. You may find it better to deal with an independent agent or broker who can offer you services from a range of companies in order to find the best deal.

Is the cheapest quote the best insurance?

Although a low-cost premium is often an enticing proposition, it is important to remember that auto insurance companies that charge little may not be able to provide the extensive kind of coverage you get with more expensive firms. Depending on your driving habits and needs, you may want to go with a more expensive provider.

Should I choose a higher deductible initially?

A deductible is the amount of money that an insurance company will not pay on any claim. For example, if you have repair costs of $600 and your deductible is $250, the insurance company will only pay $350 towards your costs. Having a higher deductible will reduce your monthly payments, but you have to decide whether it is worth the risk.

Should I insure additional family members on the same policy?

Adding extra family members to your policy will increase its cost. However, it can often be cheaper to have separate drivers on one policy rather than take out a number of policies, so if everyone in your house needs to drive, then you should consider this option.

Can I save money by driving carefully?

Insurance firms often reward careful drivers who drive for years without making claims by cutting the cost of their premiums and payments. Keeping a clean driving record can be a great way to lower your insurance costs.

Does my age matter when it comes to insurance?

In short, yes it does. There are many factors that affect insurance rates. Younger drivers are often seen as a greater risk for insurance companies as they have less experience and are statistically proven to be involved in more accidents, particularly young male drivers.

Will my car affect the price of my quote?

Again, the answer is yes. Smaller cars are less powerful and less expensive to replace in the event of an accident, while newer cars with stronger engines can really add to the price of your premiums.

By asking these questions when researching your car insurance, you should be able to keep costs down to a bare minimum and find a policy that will not leave you paying for extras that you do not need. Can you think of any other questions that are important to ask when it comes to insurance policies? Leave a comment.

Tags

Assessment, Car, Car Insurance, Choices, Facts, Knowledge, Questions

Meet the author

author avatar Julee Russo
A dog lover who focuses on living life and savoring every moment without messing up the next :)

Share this page

moderator johnnydod moderated this page.
If you have any complaints about this content, please let us know

Comments

Add a comment
Username
Can't login?
Password