Understanding The Intricacies Of Insurance

Questions To Ask Your Car Insurance Agent

Insuring your vehicle may sound like a no-brainer, but it can be pretty challenging if you're doing it for the first time. Familiarizing yourself with the laws, trying to find the right insurance company, and understanding insurance lingo can be a lot to take in for a newbie. To make it easier for you, here are some questions you need to ask a car insurance agent.

How Much Coverage Is Required?

A car insurance agent will advise you on the appropriate coverage based on your specific needs. The auto insurance law requirements vary depending on where you are. For example, in Florida, auto liability insurance is mandatory.

You should inquire about some other forms of coverage, including comprehensive, uninsured, and underinsured protection and collision coverage. Comprehensive coverage is for non-accident-related incidents like theft and tornados. 

Uninsured and underinsured coverage applies to repairs to your vehicle when an uninsured or underinsured driver hits you. On the other hand, collision coverage is for repairs arising from a collision accident. It's crucial to check in with your car insurance agent for updates on your coverage needs.

Does The Policy Feature Uninsured (UM) and Underinsured Coverage (UIM)?

Some states require motorists to have UM coverage. You should ask your agent whether the laws in your state mandate this coverage. If it's not compulsory, consider whether it is cheaper than comprehensive and collision coverage. If you don't have collision coverage, you can purchase UM coverage for damages to your car if you collide with an underinsured motorist.

Another advantage of UM coverage is that it doesn't require you to pay a deductible. However, it's limited to payments of up to $3,500. Nevertheless, you have the option of a collision deductible waiver if you have collision coverage and don't want to pay a deductible after a collision.

This means you don't pay any deductible if your vehicle collides with an uninsured driver. Since collision coverage doesn't cover medical bills, inquire from your car insurance agent about UM coverage for injuries.

What Deductibles Will You Pay?

Another critical question you should ask your car insurance agent is about the deductibles you will pay. This usually depends on the limits of your policy, coverages, and the circumstances of the incident or accident. 

For example, if you aren't responsible for an accident but the liable party isn't insured or underinsured, you may be required to foot the bill. Therefore, ask your insurance representative how you can protect yourself from such a situation.

If you caused the accident, your insurance provider will foot the bill for repairs and other expenses, provided it is within the policy limits. However, you are required to pay deductibles.