Insurance companies are competing for your business more than ever, advertising around the clock in an attempt to gain more of the market share. It’s easy to fall for some of the benefits they promote, assuming they are better or perhaps only available from a particular insurer. In this two-part post, we will explore some of these advertised insurance features and just how beneficial or unique they may or may not be.
New Car Replacement
If you buy a new car, you want to protect your investment. Collision and comprehensive coverage are a good start, protecting your vehicle against a wide range of damages. However, New Car Replacement takes coverage a step further, ensuring you receive enough money to replace your vehicle if you total it. Liberty Mutual is a primary advertiser of this service, with New Car Replacement available for vehicles that are less than one year old and have fewer than 15,000 miles on them.
Other insurers offer similar coverage, although the details vary by company. Some offer extended replacement for up to three to five years, such as with Travelers Insurance. Others feature car replacement for used cars as well, although the vehicles are typically replaced with one of the same year, make, and model, or perhaps one year newer.
Ultimately, New Car Replacement can provide significant savings if you drive a new car, but the coverage does come at a price. Talk with an independent agent here at Tagge Insurance if you are interested in adding this type of protection to your policy.
Bundle and Save
Saving is easy when you purchase multiple lines of coverage from the same insurance company. Progressive is famous for its Bundle-and-Save commercials, but the truth is nearly any insurance company will offer discounts if you offer them more of your business. In many cases, savings discounts are offered to policy-holders who combine auto with home or renter’s insurance, but you may also be able to get extra discounts for other types of coverage, such as motorcycle or RV insurance.
Safe Driving Bonus Check
The Safe Driving Bonus Check is featured on many Allstate commercials where drivers are elated to receive a check every six months they remain accident-free. However, the bonus check is only available to qualified drivers who pay an additional fee to enroll in the Your Choice Auto Program, which typically requires good credit and an A+ driving history. If you qualify and enroll, you can receive up to five percent of your premium back at the end of each policy-period. In other words, a $500 policy would yield a maximum of $25 – enough for a couple of movie tickets at best.
Alternatively, we here at Tagge Insurance help our customers compare safe driving benefits and discounts from several different companies – some of which do not charge or require special enrollment to obtain the savings. In many cases, drivers can qualify for upfront discounts on premiums. Some insurers even offer unique features, such as diminishing premiums or deductibles.
We’ll leave off in part one of our post with the Discount Double-Check, made famous by State Farm Insurance. This feature is more of an advertising strategy than anything, promising that agents will do something we feel all agents should be doing anyway – double-checking for discounts. After all, shouldn’t your agent be working hard to find you all of the savings you deserve?
With State Farm and other companies, captive agents can only comb through policies to search for discounts from State Farm. With an independent agent, on the other hand, it is possible to double-check for savings from multiple insurers, which could reveal greater savings.
Continue reading part two of our post Advertised Insurance Features.