How do you know how much insurance coverage you need? You’ll see ads promising lower rates everywhere — but is a lower rate always better? In a word, no.
“Companies that claim they can get you a quote in 15 minutes and save you a bundle may not have your best interests at heart,” said Ed Conley, CPIA, regional insurance sales manager of AAA Ohio Auto Club.
Conley recommends working with your agent and to find a balance between deductible and annual premiums that works for your budget. Take the time to understand your policy to make sure you have the most important coverages. These may be things like higher liability limits or medical payments.
It’s a good idea to conduct a yearly insurance check-up and make sure your coverage is still right for you. Asking a few simple questions to make sure you understand your coverage options could make a big difference if a disaster occurs.
- What discounts do you offer?
- What are my deductible options?
- Will my rates go up if I’m in an auto accident, even if it’s not my fault?
- Should I add collision or comprehensive coverage to my auto policy?
- What disasters do my homeowners or renters insurance cover?
- Do I have enough coverage to rebuild my home in its current location in the event of a total loss?
- Do I have enough coverage to replace my personal property in the event of a total loss?
- What are the coverage limits on expensive items such as jewelry or art, if they’re stolen, lost or destroyed?
- Are my possessions covered if they’re lost or stolen outside of my home?
- Do I have enough liability coverage?
The best companies and agents will keep in touch, letting you know of any changes to your insurance coverage and improvements to various policies. While the whole process may involve some number-crunching, “it will be worth it, because if something does happen, you’ll know you are covered,” Conley said.