Renewing your auto policy should not be done blindly, even if you are going through the process once a year, as it is a good time to understand it better and pay lower premiums. Below we’ve gone into detail about what you need to know if you are using a broker,and what you need to ask him to get the best deal on your auto insurance policy, time after time.
How to keep premium rates low when renewing a policy?
A big part of your auto insurance policy revolves around premium rates which can increase, go down or remain equal to what you were paying previously.
Premium rates are also the most visible portion of an auto policy and people usually pay most attention to them. So you need to start by asking the broker important questions related to premium rates, and how much more you will have to pay if you want additional coverage. Importantly, additional premium as low as $50-75 can effectively double the amount of coverage.
Details about comparison of different insurers
Figuring out the differences between the auto policies offered by various insurers and finding the best for you, is a major part of what brokers do. When renewing your auto policy ensure you have asked your broker about different policies, so that you get an idea about alternatives that are currently available.
Questions about the payouts in case of at fault accidents
Being acutely aware of the insurance premiums related to your auto policy is well and good, but you also need to know exactly how much you will receive as a payout in case of accidents. Auto accidents come in many forms, and include those where you are at fault. When family members are driving your car you need to know how much the insurer will cover and this is something you bring up with your broker. Additionally you need to understand if the covered amount will sufficiently protect you from liabilities, or if you will also have to make payments from your assets.
You also need to ask the broker what payments you will receive from the insurer in case you are not at fault, and have a serious injury that impacts your ability to work.
Ask for Explanations of Small Print
Lurking in the fine print is a number of important details that you might understand. So ensure you take time to bring up these questions with your broker, and fully understand any terms and conditions that are present.
Questions about Changing and Cancelling Auto Policy
Finding an alternate auto policy that has lower premiums results in the need to cancel your existing one and change to a new insurance provider. In this case, you need to ask your broker the best time for cancelling a policy without paying unnecessary fees, and how a cancellation will impact your insurance cover.
Finally, brokers know how insurance companies work and have current information about discounts and promotions offered by them. So remember to query the broker about them when renewing your policy, as could end up with bigger discounts and even higher coverage.