10 Questions Insurance Agents Answer Every Day

May 23, 2017 5 min read

When you’re in the market for home, auto, or life insurance coverage, you’re sure to have questions. Some big, some small, but all important. And that’s when having a local agent to available to answer your 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. My employer already provides life insurance. Why should I purchase more?

Many employers provide life insurance for their employees, but it usually caps out at less than your true life insurance need. And if you were to lose your job, you’ll most likely lose that coverage, too. Having life insurance that you purchased outside of work can help ensure you maintain your coverage throughout life.

The main goal of life insurance is to ensure the safety and security of your loved ones by helping with things 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, 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. My friend talks about how his annuity is going to pay him in retirement. How does that work? 

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 one-time to a lifetime. Annuities are often just one component or 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? I don’t know if I can afford it.

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. The younger and healthier you are, the lower your premium will be.

4. When do I have to add a child as a driver to my policy?

This varies by state and by insurance company. Most insurance companies require that all licensed drivers in your household have some form of car insurance.

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. Coverage from your personal auto insurance policy may extend to your rental car, especially if you’re renting a car of similar value to your personal car. However, if you’re renting a car of greater value, the extra coverage offered by the rental company may provide more complete coverage and greater peace of mind.  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, the driver’s insurance may provide primary coverages such as personal injury or medical expenses. In these cases, your automobile insurance would be considered secondary coverage. Because the policy terms and state laws can vary, it’s always best to contact your insurance agent before you loan out your car.

7. If my tree falls on my neighbors’ property, does my homeowners insurance cover their damage/cleanup?

This can vary 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, due to something like a storm, 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. 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. Liability coverage can help you pay for medical bills resulting from a guest’s injury in your home and help prevent you from paying those costs out of pocket. However, 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 because it starts where your vehicle and homeowners insurance liability limits stop.

9. Do I get a refund if I sell my house or car?

Insurance premiums on a home or car are typically calculated based on the number of days the coverage is inforce. 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.  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.  If you paid your premium in full rather than on 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.

10. Why is my house covered for such much? 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 were to ever happen 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.

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!  

Want to learn more?

Contact a local FBFS agent or advisor for answers personalized to you.