15 Key Questions to Ask when Looking for an Insurance Policy
I was contacted recently by a reader who also happens to be an employee of State Farm Insurance. He passed along to me a list of 15 questions that you will want to ask an insurance company when either shopping for a new policy or evaluating your current provider. So, if you happen to be in the market for a new insurance policy or want to re-evaluate your current policy (something I would actually recommend you do periodically), here are some questions to get you started.
Again, I did not create this list, I’m just passing it on to you as I feel it’s a good list of questions to discuss. I’d be particularly interested in the answers to questions 2, 3, 6, 7 and especially 10. Regarding #10, I’ve always found quite annoying the idea that I faithfully pay my premiums to the insurance company but they raise my rates as soon as I file a claim (wasn’t that why I was giving you all that money in the first place? So, you could cover my claim if I needed something?).
State Farm® Key Questions for Consumer Empowerment
- How do I know that I’m getting the right amount of coverage for my situation – not overpaying for things or leaving me exposed?
- What are the advantages of having different types of insurance policies (home, auto, life, etc.) with the same provider?
- What disadvantages are there of having multiple insurance policies (home, auto, life, etc.) with the same provider?
- How can I understand what comprises a good policy for my situation under each of the insurance categories? Language is complex and difficult to understand.
- How does your company make sure that I can get smart, trusted advice if my personal situation changes?
- What can I do to make sure that I get all of the discounts I’m entitled to?
- Are there benefits to renewing with the same company when my policy ends?
- How can I ensure that I’m making an apples-to-apples comparison if I’m price shopping among several companies?
- How can I make sure that my insurance decisions fit into my overall personal financial picture?
- What is the impact on me if I file a claim? Explain to me why my policy goes up when I make a claim? How is this protecting my financial needs if my insurance company raises my premium?
- What are the most overlooked discounts that are relatively easy to get?
- How frequently should I review insurance policies to ensure they are up-to-date and meet my needs?
- How can I tell if an insurance agent is being “straight” with me, or just trying to sell something else?
- Do my kids get a discount when they buy a policy with the same company that I have been with for years and years?
- Will a poor credit rating influence the coverage I qualify for and my premiums? How do I know if an insurance agency is investigating my credit report? Is that legal?
Monthly Net Worth Update – September 2009
Woohoo – our net worth increased again this month to another all-time high. In fact, something crazy that I realized when logging this month’s information is that our net worth has increased a total of 62% since the low point in March 2009. Another crazy thing that I realized is that the low point coincides with about the time I bought my iPhone….now, I don’t know if having an iPhone accounts for all of the increase – you can draw your own conclusion. ;^)
Our assets increased almost 2%
This month, we had moderate increases across the board for our assets (except for my stock options which dropped slightly). There were no huge gains like those seen in months past; the biggest increase was about 10% in our 529 college savings accounts. Other than that, most accounts saw a nice steady increase of about 2-3%. Of note is our house value increased again – it’s now rising up close to the value that we owe on our mortgage (it certainly would be nice to not be underwater on that anymore)!
Our liabilities decreased 0.5%
Another month, another drop of about 0.5% on our liabilities. One thing of note is that the contractual obligation that my wife would have to repay if she stopped working before the end of the year (which we are treating at debt in our net worth calculations) is almost down to $0. That will be a great relief to have that satisfied and not hanging over our heads. Of course, after that, the only decrease each month will, in fact, be the 0.11% that our mortgage is reduced each month. I gotta start accelerating that thing or refinancing or, or, or something!
Our net worth increased more than 5%
As I mentioned, our net worth is up to another new high. Hopefully that trend will continue forever (hey, a guy can dream!) but of course there will be hiccups along the way. Again, the plan stays the same: earn, save, invest, stay out of debt.
Buy More to Save More? You’re Doing it Wrong
I received a nice email from my credit card company today about a special “opportunity” for me:
Buy More, Save More!!
Sounds great, right? Here are some more details:
Take $25 off when you spend $150 to $249.99
(Wait, it gets better…)
Take $50 off when you spend $250 or more!
Woohoo – so are you ready to go shopping and “save some money?”
Well, I guess technically (in the strictest sense of the word), you are “saving” more money but on earth (where I currently reside) it seems like you’re actually just spending more. Here’s a fun quiz for you:
Q: If I buy something for $175, how much money will I save using this offer?
A: NOTHING – I will have spent $150!
I know that you see this kind of advertising all over the place but let’s get real here – my credit card company is not trying to save me money. Rather, they are trying to get me to spend more money (using their card, of course). But we are bombarded with these and numerous other similar artifices day in and day out. It is almost to the point where we are blind to the truth of the matter (or the math of the matter in this case). So, keep you eyes open out there and, of course, beware of credit card companies bearing gifts…
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