Navigating the world of car insurance can feel overwhelming. There are premium costs to consider, coverage limits to understand, and legal requirements to meet. Before you commit to a policy, it’s important to ask the right questions. The answers can help you better understand what you’re paying for and ensure you’re fully protected when it matters most.

Here are 10 crucial questions to ask your insurance agent before signing a car insurance policy. Think of this as your roadmap to making informed decisions about your coverage.

1. What Are the Different Coverage Types in My Policy?

Car insurance typically includes several types of coverage, such as liability, collision, comprehensive, uninsured/underinsured motorist coverage, and personal injury protection. Your agent should walk you through these options and explain what each one covers.

Why It’s Important:

Knowing the differences can help you tailor your policy to your needs. For instance, collision coverage pays to repair or replace your car if you’re at fault in an accident, while comprehensive coverage protects you from non-collision damages like theft, vandalism, or weather-related incidents.

What to Ask Next:

  • Are there types of coverage I can exclude to lower my premium, or are they mandatory in my state?
  • Does this policy meet state requirements?

2. What Are My Liability Limits, and Are They Enough?

Liability insurance covers the damages or injuries you cause to others. Limits are typically expressed as three numbers, like 25/50/25, which means $25,000 for bodily injury per person, $50,000 per accident, and $25,000 for property damage.

Why It’s Important:

State minimums often aren’t sufficient, especially in accidents with significant injuries or damages. If you’re underinsured, you could be held personally liable for costs that exceed your coverage.

Follow-Up Tip:

Ask about increasing your liability limits or adding an umbrella policy to provide extra protection, particularly if you have significant assets.

3. How Does the Deductible Work, and What Are My Options?

Your deductible is the amount you pay out of pocket before your insurance covers the rest. Common deductibles range from $250 to $1,000, and your choice will affect your premium.

Why It’s Important:

A higher deductible means lower premiums, but it also means more out-of-pocket costs if you need to file a claim. Striking the right balance is key.

Actionable Tip:

Ask your agent for quotes on different deductible amounts so you can compare how they impact both your monthly premium and potential out-of-pocket expenses.

4. Does My Policy Include Uninsured/Underinsured Motorist Coverage?

This coverage protects you if you’re in an accident caused by someone with little or no insurance.

Why It’s Important:

Not everyone on the road carries adequate coverage. Uninsured/underinsured motorist protection ensures you’re not stuck paying for damages or medical bills if the other party can’t.

Bonus Question:

What are the uninsured/underinsured motorist limits, and do they match my overall liability limits?

5. What Discounts Do I Qualify For?

Insurance companies often offer a variety of discounts. These might include savings for bundling home and auto policies, having a clean driving record, installing safety features in your car, or even being a good student.

Why It’s Important:

Taking advantage of discounts can significantly reduce your premium costs. Sometimes, you’re eligible for deals that agents don’t automatically apply, so it’s worth asking.

Pro Tip:

Ask if your premium could be further reduced by taking defensive driving courses or using apps that track safe driving habits.

6. Is Roadside Assistance Included or Available as an Add-On?

Roadside assistance helps cover costs for flat tires, towing, battery jumps, and lockouts. Some policies include this as a standard benefit, while others offer it as an add-on.

Why It’s Important:

Breakdowns can happen unexpectedly, and having roadside assistance can save you time and stress.

What to Confirm:

Ask about things like coverage limits for towing distances or the maximum number of service calls allowed per year.

7. Does My Policy Cover Rental Cars?

If your car is in the repair shop after an accident, rental car coverage can pay for a temporary replacement.

Why It’s Important:

Not all policies automatically include rental car reimbursement, and adding it may cost just a few extra dollars a month.

Follow-Up Tip:

Ask about the daily rental allowance and time limits on coverage.

8. How Will an Accident or Claim Affect My Premium?

Your premium can increase after an accident or claim, even if you weren’t at fault. Ask your agent whether the policy includes accident forgiveness to minimize rate hikes.

Why It’s Important:

Understanding how claims affect your premium can help you decide whether it’s worth filing minor claims or paying out of pocket.

Pro Tip:

If accident forgiveness isn’t included, ask whether it’s available as an upgrade and how it impacts your premium.

9. What Happens If I Drive Someone Else’s Car (or If They Drive Mine)?

It’s important to know whose insurance covers what in scenarios where you or someone else is driving a car that’s not their own.

Why It’s Important:

Some policies cover only the car, while others provide coverage for the driver. This is especially relevant if you frequently loan out or borrow vehicles.

What to Verify:

Ask whether the policy includes permissive use coverage and what restrictions apply.

10. Are There Exclusions I Should Know About?

Every car insurance policy has exclusions, or scenarios in which coverage won’t apply. For example, some policies don’t cover rideshare activities like driving for Uber.

Why It’s Important:

Knowing exclusions upfront can help you avoid gaps in coverage. You don’t want to find out too late that you’re not insured in certain situations.

Follow-Up Suggestion:

If you’re a rideshare driver or use your car for work purposes, ask if commercial or rideshare coverage is available.

Signing a car insurance policy isn’t something to rush through. By asking these 10 essential questions, you can feel confident that your coverage meets your needs and protects you from financial surprises in the future.