Five questions you should ask the insurance provider before purchasing insurance


When you are purchasing auto insurance there are a few questions that you must ask any auto insurance provider before making the purchase. This will help you in not only taking a fool-proof policy but also in saving some money, which is quite important these days. These are simple questions that will let you know a lot about what you are paying for and what you can expect from the auto insurance provider in the future.

What does the policy not cover?

A lot of times, customers ask the wrong question to the auto insurance provider. They ask what the insurance covers and that leaves a lot of ambiguity. Instead it is important to find out what the insurance provider is not covering. For example, if you are taking collision insurance, you might want to know the situations wherein you will not receive coverage from your auto insurance provider. This will prevent future surprises and will help you plan better. As a result, knowing about fine print conditions, like no coverage when someone else is driving your vehicle, will keep you well informed in the future.

Are there any discounts that you can avail?

No insurance provider will tell you that you will get a reduced premium because of a list of discounts that you qualify for. However, when you ask you will invariably get a positive reply. Also, in some scenarios, it could be a matter of negotiation rather than an incentive from the insurance provider. If you have a good credit history, a clean driving record or good grades at college, you can ask the insurance provider for auto insurance. That will tell you whether it is time to move to a different insurance provider.

Are there incentives for combo plans?

You may want to purchase just liability insurance, but if you are getting collision insurance or comprehensive insurance or both for a very small additional cost, it is totally worth it. This is because more coverage is always safer in the long term. When you are getting the benefits of a combo plan, it is a good idea to extend the coverage.

Are there add-on charges that you can get rid of?

Some auto insurance providers might add charges for additional services like towing of a damaged car, roadside assistance, rental car insurance, etc. If you don’t need them, you need to make sure you are not paying for them.

Are there incentives for multiple policies?

Most auto insurance providers have some good incentives lined up for those who take multiple policies. If you need house insurance as well as auto insurance, you can pick one insurance provider and purchase both together. You will end up saving more that way as opposed to the individual costs. This is because when you take multiple policies you become a privileged customer doing more business with the insurance provider for which, most insurance providers will be obliged to give you better rates. In fact, you can even expect better service from the auto insurance providers.