10 Common Insurance Questions Agents Answer Every Day

Insurance agents hear a lot of frequently asked questions — and they’re frequent for a reason. Getting home, auto or life insurance often accompanies a big life change or raises important questions for the buyer. And if that’s you, you’re sure to have questions. Whether big or small, every question is important. 

That’s why having a local agent available to answer your common insurance questions can make all the difference. Our team is ready help whenever you need us, but to help you get started, below we’re answering 10 questions we’re asked nearly every day.

1. Should I Purchase Life Insurance Even Though It Is Provided by My Employer?

It’s true that many employers provide life insurance for their employees. But the cap on the insurance amount in employer-provided life insurance is usually lower than how much life insurance you really need. Furthermore, if you were to lose your job, you’ll most likely lose your coverage, too. Having life insurance that you purchased outside of work can help ensure you maintain your coverage throughout life, no matter the circumstance.

The main goal of life insurance is to ensure the safety and security of your loved ones by helping with costs like mortgage payments, education costs and living expenses. One of the biggest questions agents are asked when talking about life insurance is how much you will need. Since everyone’s financial situation is a bit different, and since life insurance needs depend on factors such as your dependents, there is no simple rule to tell you how much to buy. But you can get an idea of how much insurance you may need by checking out our life insurance calculator.

2. How Can an Annuity Pay Me in Retirement? 

An annuity can, in fact, help you supplement your retirement income. It’s designed to pay you a steady stream of income in your retirement years. Here’s how it works: you make deposits into the annuity, then when you reach age 59 ½ you can begin to receive income — either quarterly, annually or in one lump sum. You can also determine how long you’ll receive payments with options ranging from once to a lifetime. 

Annuities are often just one component in a retirement strategy, so it’s important to meet with a Farm Bureau agent to determine if an annuity is right for you.

3. Isn’t a Life Insurance Policy Expensive?

If you’re already living on a tight budget, it can be difficult to pay for a life insurance premium. But it’s important to remember that if your household finances are tight while people are alive and well, it will be much more difficult should you pass away. The cost of life insurance depends on your age, your health and the size of the death benefit you want. So, remember — the younger and healthier you are, it’s likely that your premium will be lower. It’s worth prioritizing life insurance when it costs less.

4. When Do I Have to Add a Child as a Driver to My Policy?

A child in your household that is old enough to drive introduces additional likelihood of future claims, even if the child does not have their own dedicated vehicle. For that reason, nearly all insurance companies will require the child to be a driver on the policy. Some carriers will require they be assigned to a particular vehicle while other carriers will just want to consider their impact on the household driving overall. Either way, insurance carriers have access to reports that will identify unlisted drivers, so it is best to let your insurance company know about all potential drivers right away. Keep in mind, you can potentially lower the cost of a younger driver with these strategies.

5. Does My Auto Insurance Policy Cover Me if I Rent a Car?

One of the most common questions when it comes to renting a car is whether to buy the rental car coverage. The answer depends on several factors. Coverage from your personal auto insurance policy may extend to your rental car. Some carriers may have limitations on this extension, while others will extend the broadest coverage available to you, so you should always check with your agent before rejecting the rental car coverage. There are typically a couple of things to consider. 

Your policy may not cover claims the rental car company made for diminished value of the car, or for lost income for the time the car is not available to rent if they have no other cars available. If you use your auto insurance policy, you will need to go through the claims process and some carriers will make that an easy experience. If you purchase the additional rental coverage, depending on the situation and type of claim, you may be able to hand them the keys and walk away without much involvement.  If you’ve got a trip coming up, you can double-check your coverage with a simple SuperCheck^® in your agent’s office. 

Learn more about Farm Bureau’s auto insurance.

6. If Someone Else Drives My Car, Are They Covered by My Auto Insurance Policy?

Probably. If someone is driving your car with your consent and is involved in a covered accident, coverage will most likely be afforded to protect your interests up to the limits of your auto insurance policy. However, some carriers do limit the amount of liability coverage they will provide for a guest driver. Keep in mind that the driver’s insurance (assuming they have insurance) will need to coordinate with your coverage. It may be excess coverage, primary coverage or sharing the claim with your carrier on a pro-rata basis, depending on the way both policies are written.  Of course, either policy’s liability coverage would likely not cover damages to your vehicle unless you have comprehensive and collision coverage. Depending on the way the other driver’s coverage extends, you may still be responsible for paying the policy deductible in the case of comprehensive or collision damage. It’s always best to contact your insurance agent if you plan to loan out your car because the terms of your policy, the borrower’s policy and state laws can vary.

7. If My Tree Falls on My Neighbors’ Property, Does My Homeowners Insurance Cover Their Damage and Cleanup?

The answer to this question varies from state to state and situation to situation. In many cases, if your tree or any part of it falls on your neighbors’ property and causes damage to their property through no fault of your own — for instance, due to a storm or similar weather event — you will not be held legally liable for the damage. Your neighbors would need to file a claim with their own property insurer.  However, if any part of the tree falls as a result of your negligence, like a dead overhanging branch, you may be responsible for the damages. This of course means that you should keep a close eye on the trees on your property and make sure you take care of problems before they begin. But in this case, coverage for the claim will depend on your specific policy. If you’re not sure what your policy includes, schedule a SuperCheck today. We’ll help you identify any potential gaps in your coverage.

8. If I’m Hosting a Party and a Guest Is Injured on My Property, Will My Homeowners Insurance Policy Cover Their Medical Bills?

Most likely! Personal liability coverage is typically a component of homeowners insurance coverage. When a guest is injured in your home, liability coverage can help you pay for medical bills, which in turn can prevent you from having to pay those costs out of pocket. However, keep in mind that medical payments and personal liability coverage will only pay up to a set dollar limit. If a liability claim exceeds your coverage limit, you could be held financially responsible for the difference. An optional coverage called a personal umbrella liability can help you provide additional protection beyond the limits of your homeowners policy. It starts where your vehicle and homeowners insurance liability limits stop. If you are collecting money for the party or charging for alcoholic refreshments, you should definitely check with your agent as there could be coverage limitations that apply. 

9. Do I Get a Refund on My Insurance Policy if I Sell My House or Car?

Maybe. Insurance premiums on a home or car are typically calculated based on the number of days the coverage is in force. Likewise, a return of premium when selling your home or car is also calculated based on the number of days the coverage was in force and how much of the premium was already paid in advance. Some carriers may make the premium on some types of property, like seasonal vehicles or boats, “fully earned.” That means there will not be any refund of premium unless certain exceptions apply, such as selling the item. The premium return may be in the form of a credit toward any future billing if, for instance, other coverages remain on your account, and you are being billed on an installment basis and have a balance due. If you paid your premium in full rather than in installments, you may qualify for a premium refund rather than an account credit. When selling insured assets such as a house or car, be sure to notify your agent of the date ownership is being transferred so that you receive the appropriate premium return, when eligible, in the form of a refund or an account credit. And it’s a good idea to check with your insurance agent before the sale so you know what to expect and they can ensure your coverage transitions smoothly through the sale.

10. Why Does It Cost So Much to Cover My House? I Could Never Get That Much if I Sold It.

One of the main reasons you have homeowners insurance is to cover rebuilding costs if anything happens to your home. If you have a total loss, rebuilding your home can be your biggest expense and one of your first priorities. The cost to completely rebuild your home could be much greater than the price you paid for it and could even exceed your home’s current market value. Insurance is designed to create peace of mind and alleviate the financial burden.

Protect What Matters Most in Your World  

It’s important to keep your insurance in mind when any life-changing events happen, big or small. It’s a good idea to have a SuperCheck with your agent every year to make sure you’re protected and getting the insurance discounts you deserve. Get in touch with a Farm Bureau insurance agent today to go over any questions you may have to ensure your world is protected!