Buying Insurance

Lesson 8: How To Be A Savvy Insurance Buyer

You And Your Agent

1. Assess your relationship to the agent. How comfortable does he or she make you feel? Is the agent using a lot of technical jargon, or explaining the insurance in language you can understand? Is the agent answering your questions? Is he or she helping you to buy what you need or merely trying to sell you something? If you don't feel comfortable with this agent, then seek out another.

2.Come prepared to the meeting with your insurance agent. Don't be afraid to make a list of the questions and issues you want to discuss. Better to consult a list than to remember later an important question you forgot to ask.

3.Don't be afraid to ask questions. There are no dumb questions in the purchase of insurance. If the agent appears impatient with your questions, or unsure of the answers, it may be time to seek out a different insurance agent.

4. Try to imagine real life situations and ask questions accordingly. For instance, if your home is partially damaged by a fire, but is uninhabitable because of the loss of critical facilities, would your homeowners insurance pay for the cost for you and your family to live temporarily in a hotel or apartment?

5. Don't buy insurance from whoever answers the phone. Seek out an agent and try to find one with the most expertise in the insurance you are seeking. Also avoid buying insurance through the mail or by phone using 800 numbers. If you don't consult an agent, you dramatically increase the chances of having uncovered claims. For more on the process of seeking an insurance agent see Hungelmann, pp. 198-99.

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