The Ultimate Checklist Before Choosing Any Insurance Policy
By Rozmek Team
•
September 25, 2025
Choosing an insurance policy can feel overwhelming with all the jargon and fine print. But you can simplify the process and make a smart decision by using a simple checklist.
Before you sign on the dotted line for any policy—whether it's for your car, home, or business—run through these essential questions. This will help you compare your options like a pro and ensure you're getting the right protection at the best price.
Your Insurance-Buying Checklist ✅
1. The Coverage Questions ????️
✅ What are my coverage limits?
This is the maximum amount the insurance company will pay for a single claim. Make sure your liability limits are high enough to protect your assets in a worst-case scenario. Don't just settle for the state minimum on your auto insurance.
✅ Is this for "Replacement Cost" or "Actual Cash Value"?
This is critical for home and renters insurance. Replacement Cost (RC) pays to replace your damaged items with new ones. Actual Cash Value (ACV) only pays what your items were worth at the time of the loss (i.e., the depreciated value). You almost always want Replacement Cost.
✅ What are the biggest exclusions?
Ask the agent directly: "What are the three most common things people think are covered by this policy, but actually aren't?" This helps you understand the major gaps in coverage, like floods not being covered by a standard homeowners policy.
2. The Cost Questions ????
✅ What is my deductible?
How much will you have to pay out-of-pocket before the insurance kicks in? Make sure you choose a deductible that you have readily available in your emergency fund.
✅ What is the total premium?
Ask for the price broken down by month, by the 6-month term, and for the full year. This helps you compare quotes from different companies on an apples-to-apples basis.
✅ What discounts am I eligible for?
Don't wait for them to be offered! Actively ask about every possible discount: bundling home and auto, being a good driver, having a good student in the family, home safety features, paying in full, etc.
3. The Company Questions ????
✅ What is the company's financial strength rating?
You need to know if the company can actually afford to pay your claim. Look up their rating from an independent agency like A.M. Best. You want to see a grade in the "A" range (A++, A+, A, A-).
✅ How is their customer service and claims process?
A cheap price isn't worth it if the company is a nightmare to deal with when you have a problem. Look up customer satisfaction ratings from sources like J.D. Power or read online reviews specifically about their claims handling.
4. The Comparison Questions ⚖️
✅ Have I gotten at least three different quotes?
This is the single most effective way to know if you're getting a fair price. Never accept the first quote you receive.
✅ Am I comparing apples-to-apples?
When you're looking at multiple quotes, make sure you're comparing policies with the exact same coverage limits and deductibles. Otherwise, you won't know which company is truly offering the better value.
By running through this checklist, you'll move from being a passive buyer to a proactive, informed consumer. It's your best tool for choosing a policy that gives you real security and peace of mind.
Before you sign on the dotted line for any policy—whether it's for your car, home, or business—run through these essential questions. This will help you compare your options like a pro and ensure you're getting the right protection at the best price.
Your Insurance-Buying Checklist ✅
1. The Coverage Questions ????️
✅ What are my coverage limits?
This is the maximum amount the insurance company will pay for a single claim. Make sure your liability limits are high enough to protect your assets in a worst-case scenario. Don't just settle for the state minimum on your auto insurance.
✅ Is this for "Replacement Cost" or "Actual Cash Value"?
This is critical for home and renters insurance. Replacement Cost (RC) pays to replace your damaged items with new ones. Actual Cash Value (ACV) only pays what your items were worth at the time of the loss (i.e., the depreciated value). You almost always want Replacement Cost.
✅ What are the biggest exclusions?
Ask the agent directly: "What are the three most common things people think are covered by this policy, but actually aren't?" This helps you understand the major gaps in coverage, like floods not being covered by a standard homeowners policy.
2. The Cost Questions ????
✅ What is my deductible?
How much will you have to pay out-of-pocket before the insurance kicks in? Make sure you choose a deductible that you have readily available in your emergency fund.
✅ What is the total premium?
Ask for the price broken down by month, by the 6-month term, and for the full year. This helps you compare quotes from different companies on an apples-to-apples basis.
✅ What discounts am I eligible for?
Don't wait for them to be offered! Actively ask about every possible discount: bundling home and auto, being a good driver, having a good student in the family, home safety features, paying in full, etc.
3. The Company Questions ????
✅ What is the company's financial strength rating?
You need to know if the company can actually afford to pay your claim. Look up their rating from an independent agency like A.M. Best. You want to see a grade in the "A" range (A++, A+, A, A-).
✅ How is their customer service and claims process?
A cheap price isn't worth it if the company is a nightmare to deal with when you have a problem. Look up customer satisfaction ratings from sources like J.D. Power or read online reviews specifically about their claims handling.
4. The Comparison Questions ⚖️
✅ Have I gotten at least three different quotes?
This is the single most effective way to know if you're getting a fair price. Never accept the first quote you receive.
✅ Am I comparing apples-to-apples?
When you're looking at multiple quotes, make sure you're comparing policies with the exact same coverage limits and deductibles. Otherwise, you won't know which company is truly offering the better value.
By running through this checklist, you'll move from being a passive buyer to a proactive, informed consumer. It's your best tool for choosing a policy that gives you real security and peace of mind.