Nobody wants to pay more for insurance. It’s tempting to think, “The more I tell my agent, the more this will cost.” So you quickly answer the questions on your insurance application, keep things short, and you don’t ask for clarification on questions you didn’t really understand.
That might save time or money today. But missing or incorrect information can lead to a denied claim when your financial future and quality of life depends on coverage being there.
That’s why I keep encouraging you to have a good conversation with your agent. Start with, “What if I do this?” What if my daughter gets her license? What if someone borrows my car? What if I deliver food for extra money? What if my son moves out but keeps driving one of my cars? What if I finish my basement? What if I get a wood burning stove in my garage? Etc.””
Watch out for responses from your agent such as “well, it’s hard to say, it varies by insurance company… ahhhhh, that SHOULD be OK… don’t worry about it.”
An agent who saves you time or money by overlooking important information isn’t doing you a favor. Neither is an agent who offers reassurance while shrugging their shoulders.
A good agent should help clear up the uncertainty. That may mean checking the policy, asking the insurance company to review your situation, and documenting the answer. If coverage needs to change, the agent should explain your options. And if insurance won’t address whatever you’re thinking about doing, you need to know that too.
For the best “good conversation” you can have with your insurance agent, first make an appointment so your agent has time to prepare for the conversation. Then you can both set aside time for a good walk-through on your coverage. I recommend doing this annually. If your agent is on the ball, they’ll have your policy in front of them along with a list of questions designed to find out what’s changed in your life and how these changes impact the insurance decisions currently shaping your coverage. Just do it!!!