7 Questions to Ask Before Choosing an Insurance Policy

Before you sign on the dotted line, take a deep breath and ask yourself these 7 questions:

1. What am I trying to protect? This might seem obvious, but clearly identifying what you need coverage for is the first step. Are you looking for homeowners insurance, auto insurance, general liability insurance, or something else entirely? Understanding your specific needs will help you choose the right type of policy.
2. What coverages are included? Every insurance policy is different, so it's important to understand exactly what's covered. Read the policy documents carefully and ask your insurance agent to explain any confusing terms. Don't be afraid to ask for clarification on things like deductibles, limits of liability, and exclusions.
3. How much coverage do I need? While having enough coverage is crucial, over-insuring yourself can be less-than-ideal. Talk to your insurance agent about replacement costs for your belongings (for homeowners policies) and how to make sure you can show evidence of what you own to a carrier if needed.
4. What are the deductibles? The deductible is the amount you'll pay out of pocket before your insurance kicks in. Higher deductibles typically mean lower premiums, but make sure you can comfortably afford the upfront cost in the event of a claim.
5. What are the exclusions? Every policy has exclusions, which are situations where coverage is not provided. Make sure you understand what's not covered and consider additional policies if needed (e.g., flood insurance).
6. What are the discounts available? Many insurance companies offer discounts for things like bundling multiple policies, having a good driving record (for auto insurance), or having security systems installed (for homeowners policies). Ask your agent about available discounts and take advantage of them to save money.
7. Who is the insurance provider? Do your research on the insurance company's reputation for customer service and claim processing. Read online reviews and check their financial stability ratings.