There’s no way around it: choosing an auto insurance plan is a daunting task at any age.
As a millennial, you may worry that car insurance brokers will take advantage of your inexperience. They may attempt to overcharge you for cut-rate insurance or offer you a plan that doesn’t meet your particular needs.
At Higgins Insurance, we want drivers of all ages to make the best decision possible. That’s why we put this handy list together. Below, you’ll find all the essential questions you should ask a prospective insurance company before you sign any paperwork.
9 Important Questions to Ask Car Insurance Brokers
Car insurance rates across Canada are on the rise. In fact, drivers in the Atlantic provinces saw a nearly 4% increase at the end of 2018 compared to the previous year.
If you’re lucky, you’ll never have to actually use your insurance. In that case, it seems frightening to pay such high rates. However, remember that we face specific driving hazards in the Maritimes that drivers cannot control.
You might be a model driver, but what happens when it starts snowing and the driver behind you decides to begin scrolling through his phone? Plenty of accidents are entirely out of your control.
At the same time, you certainly don’t want to pay more than you need to. You need the right insurance within the proper budget. Make sure to ask car insurance brokers the questions below before making a decision.
1. What are My Deductible Options?
Your deductible dictates how much you pay out of pocket in the unfortunate event of an accident. It can range from $500 to upwards of $2000.
You and your insurance agent should agree on a deductible based on many factors including your driving history, vehicle value, and risk. (Lower isn’t always better.) Check out our handy guide on navigating deductibles.
2. What are My Coverage Options?
The two most common types of coverage are collision and comprehensive.
You also have several other coverage options for bodily injuries, road-side assistance, depreciation, rental vehicles. Make sure to ask car insurance brokers about both mandatory insurance and these optional coverage options.
3. Do You Offer Any Discounts?
Always ask if you’re getting the best rate possible. If you don’t come straight out and ask for discounts, an insurance company probably isn’t going to offer them.
At Higgins Insurance, for example, we want to help drivers get the best rate possible every time. That’s why we offer group discounts and bundling options to reduce your overall burden. We’re on your side.
4. Who is Covered Under My Insurance Policy?
Maybe you don’t plan on lending your car out to friends but imagine the following scenario:
You’ve had a drink or two and ask your sober friend to drive you home (because you’re a responsible driver). On the drive, someone hits your car causing significant damage.
The accident wasn’t your friend’s fault, but many insurance plans still may not accept the claim.
Don’t beat around the bush. Ask insurance companies precisely what happens if someone who isn’t listed on your plan borrows your car and gets into an accident.
5. How Do You Assess My Risk?
Every insurance company has different standards for assessing your risk and, ultimately, how much you’ll pay.
As a millennial, it’s especially important to ask how an insurance company assesses age-based risk.
How much will you pay compared to a similar driver ten years your senior?
At what age will they reassess your risk?
Ask car insurance brokers if your A+ driving record will lower your rate after you've built some trust.
6. What If I Need to Change My Policy?
Does the insurance company allow flexibility to update your policy as your needs change? It may not be as easy as you think.
With our Higgins Insurance app, you can make changes and access all of your documents with the click of a button.
7. What Happens If My Car Is Totaled?
No one wants to plan for the unthinkable but failing to do so can cost you big time. Even if you’re a responsible driver, a distracted driver on their phone can total your car in the blink of an eye through no fault of your own.
If you find yourself in this situation, what happens?
At Higgins Insurance, we want to make your life as easy as possible. We know it’s not easy to live without a vehicle. That’s why we’ll get you set up with a rental car if you find yourself without transportation due to an accident.
8. Does My Policy Only Cover Aftermarket Parts?
Even your parents might forget about this vital question. A lot of cut-rate plans will only cover aftermarket parts for repairs which can potentially impact the value of your vehicle.
Ask car insurance brokers if your plan will cover original manufacturer parts for significant engine repairs or if you’ll have to pay more out of pocket.
9. Do You Offer 24/7 Claim Service?
If your car is totaled in an accident, it will probably happen at 2 AM on a Sunday while you’re driving home from a holiday gathering. That’s just life, right?
Not every insurance company offers 24/7 claim support. In some cases, this means you’re left in limbo for days waiting to file your claim.
At Higgins Insurance, we just can’t let that happen. With our app, you can quickly file a claim and speak to a representative – anytime – from the palm of your hand.
Higgins Insurance Makes Car Insurance Easy
Higgins Insurance is one of the fastest growing independent insurance brokers across the Maritimes. As a family owned and operated company, we have over 20 years of experience helping drivers find the right insurance at the perfect rate.
We’re happy to offer bundle packages and group discounts to make your life just a little easier. Plus, our streamlined app makes it easy to manage everything from the palm of your hand. Higgins Insurance is 100% on your side.
Contact Higgins Insurance today to request a quote or ask about group discounts.