Many people don’t truly take the time to look through their auto insurance policies until it’s too late. You don’t want to be footed with an unexpected bill after an accident, so it’s important to take a look through your policy and understand exactly what you’re buying. Although you might have sat down with an agent when you first purchased car insurance, it is always a good idea to meet with them again just to be clear on the terms of your coverage. Below are important six questions you’ll want to ask your insurance agent about your policy in order to avoid any confusion.

Does My Insurance Cover Flood Damage?

Flooding has been a major cause for concern this year because there has been record rainfall and flooding throughout the nation. Usually a flood claim is a total loss on the car, so it’s pretty important that you’re covered under an event like this, even if you have an older car that has been paid off for years. Having comprehensive coverage will help you secure a down payment for a new vehicle.

How Does My Car Insurance Cover a Rental?

Let’s say you’re going out of town for a week and don’t want to put the extra miles on your car, so you decide to grab a rental instead. When you’re signing the contract you’re going to be presented with a list of insurance options. In this situation, it’s important to know how your insurance will extend coverage to the rental to help you mitigate any unexpected costs. In most cases, if you’re renting a car similar in value to your vehicle then you’ll be safe, but it’s always a good idea to look over your coverage with your agent just in case.

Is My Liability Too High or Too Low?

Liability coverage seems like almost an afterthought when purchasing a policy, and most people tend to go with the state minimums. Unfortunately, a claim against another automobile is much cheaper to pay out than an injured family’s hospital bills. Your auto liability limits cover your assets, so it’s important to match your limits to your assets.

What is the Payout Process Like?

According to a personal injury attorney, knowing the payout process of a claim can be important in deciding how much coverage you’re comfortable purchasing. Most states have a form of personal injury protection (PIP) that will pay out first, followed then by medical payments. If that isn’t enough to cover your hospital bills, you can also litigate the at-fault driver for their bodily injury, or go even further and go after their uninsured/underinsured motorist coverage.

Why Should I Buy Medical Coverage if I already have Health Insurance?

This is a common question people ask their agents when purchasing insurance. What most people don’t realize is that this money does not cover your medical bills in the case of an accident, it covers the medical bills of people you injure. So, while you might be covered for injuries by your health insurance, you’ll be stuck with the bill if you injure someone in an accident and they decide to litigate.

What’s the Difference Between Comprehensive and Collision?

Many people either raise their deductibles or drop their comprehensive and collision coverage all together, once the vehicle reaches a certain age, to reduce their premium. This can be dangerous because you’re also dropping coverage for your vehicle under weather related circumstances as well. It’s generally always a good idea to keep comprehensive on your vehicle unless you know you’re financially stable enough to do without the vehicle in the case of it being a total loss. Comprehensive coverage covers for more than just acts of God, so speak with your agent to learn more.

When you purchase your policy, any good insurance agent will walk you through the basic coverage, but some things aren’t spelled out exactly. Knowing what types of questions to ask will help you purchase a policy that fits your needs the best. Even if you’ve had your policy for a long time, it never hurts to meet with an agent in order to make sure you aren’t paying too much, or aren’t missing any important coverage.