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Shopping Tips for Insurance
Automobile
and Homeowners Shopping Tips
- Answer the questions on the application
completely and honestly.
- Do not sign a blank application.
- Do not pay the agent in cash. Make a
check payable to the insurance company. And include the type of
policy that you are paying for (auto or homeowners, etc.).
- If you are turned down for insurance,
ask for the specific reason.
- Do not buy on price alone; consider coverage
and service. Select a company and agent you feel you can trust.
- Do not forget to ask about discounts
for safety and security devices (burglar alarms, fire alarms,
dead bolts).
- Remember to use the Insurance Quotation
Worksheet to see which company has the lowest price for you.
- Ask if the company gives a new home discount
or multi-policy discount.
- Ask about the difference in price between
a “named peril” policy and an “open perils” policy.
- Make sure your dwelling policy limits
are at least 80% of the replacement cost of your home. If you
do not have a recent appraisal, ask your agent to help you.
- Does the company offer an inflation guard
endorsement?
- Discuss with your agent whether you should
list your valuable items of personal property on a personal property
schedule. Does the company offer full replacement cost coverage
on your personal belongings?
- Ask about the difference in price for
basic liability limits of $100,000 and a higher limit such as
$300,000 or $500,000.
- Companies are required by law to offer
you water and sewer back-up coverage. If your property is subject
to water, which backs up through the sewer or drains, make sure
you get this coverage. You may have to pay extra.
- Companies are required by law to offer
you building ordinance or law coverage. This provides protection
when a building damaged by a covered peril must be repaired or
rebuilt in a more costly manner because the original construction
does not comply with current building codes. This coverage may
cost you extra.
- Your homeowners policy has some provisions
that may prevent you from receiving payment for a claim even if
you have paid the premium. If your home or apartment is left vacant
or unoccupied, some part of your coverage may be suspended automatically.
When you plan a long vacation, or when you are moving either in
or out of your home, or if your home will remain vacant for any
other reason, you should ask your agent or company which coverages
will be suspended.
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ct teLife
and Health Insurance Shopping Tipsx
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Decide how much insurance
you need and the length of time the protection should last.
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Learn what kinds of policies
are available to meet your needs and pick the one that best suits
you.
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Look for a policy with a
premium you can afford. It can be costly to let policies lapse.
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Use the 10 day “free-look”
provision, you can get your money back in the first 10 days if
you change your mind.
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Reassess your life insurance
needs frequently because your needs will change as your dependents
and finances change.
Health Insurance
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Always complete applications
including your medical history.
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Check policy provisions
that restrict or reduce benefits.
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Be aware of possible consequences
when replacing existing coverage.
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Check your right to renew.
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Use the 10 day “free-look”
provision.
General Shopping Tips
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Shop around.
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Select a sound company and
a reliable agent.
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Check with the Bureau of
Insurance to see if the company and the agent are licensed to
do business in Virginia.
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Examine the policy carefully.
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Carefully review the copy
of your application contained in your policy and report any errors
or omissions to the company or agent.
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Do not pay cash for any
policy.
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Check the rating of the
company.
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