We continue with Part Two of our post, Advertised Insurance Features.
Most insurance companies offer a lengthy list of discounts to customers who meet certain criteria, whether it is for enrolling in a safe driving course or for a student who has good grades in school. As a policy-holder, you want to get all of the savings you deserve, which is why State Farm began advertising the Discount Double-Check. This is not a special coverage or discount, but rather a promise to double-check that customers have received every discount they qualify for.
Though State Farm stakes claim to the name, the truth is any insurance agent could perform the exact same service, albeit from their own companies instead of State Farm. To really get the most from insurance discounts, we recommend using an independent agent instead. That way, you can search for discounts from multiple insurers and then compare them against each other to maximize your value.
New Car Replacement
The next item on our list of advertised insurance features is New Car Replacement coverage, which is offered by many different insurance companies but advertised by Liberty Mutual. This coverage is designed to replace your totaled car with another one just like it or up to one year newer. Compared to standard collision coverage, which only covers the depreciated cash value of your vehicle, this could be an upgrade that saves you thousands of dollars should you ever need to use it.
With most insurance companies, it costs extra to enroll in New Car Replacement coverage. Furthermore, the requirements and coverage may vary from insurer to insurer, with some providing new car replacement only and others offering ‘better’ car replacement for used cars as well. Comparatively, some insurance companies may limit new car replacement to between one and three years, whereas Travelers Insurance extends that protection for up to five years of ownership with its Premier New Car Replacement program.
If you are considering adding new car replacement to your insurance policy, contact an agent here at Integrity Insurance today.
Next up is GAP protection, a coverage that is not advertised as often as some other types of protection, but still very important to certain drivers. When you total your car, GAP coverage pays off your car loan when your insurance settlement is not enough to cover the entire balance. This is generally recommended for drivers who finance new vehicles with a low down-payment and/or lengthy repayment terms since depreciation will initially outpace the payoff rate under these circumstances.
It is important to note that GAP protection is only useful when the balance of the car loan exceeds the value of the vehicle itself. Once your loan balance falls below the value of the car, you no longer need GAP protection. If GAP protection is part of your car insurance policy, you can save money by dropping the coverage at that time. If you purchased your GAP coverage from a lender or car dealership instead, you may have paid hundreds of dollars in upfront premiums for coverage that extends the life of the loan – long after you actually need it.
Rather than pay extra for coverage you do not need, contact an independent agent here at Integrity Insurance to add GAP protection to your car insurance next time you finance a vehicle.
Name Your Price Tool
Finally, we wrap things up with the Name Your Price Tool from Progressive. This is not a special coverage or discount, but rather a website feature used to market insurance to drivers who are looking for a bargain. The commercials make it sound like you get to decide how much to pay for your car insurance for Progressive, but there is actually more than meets the eye. By using the tool, drivers receive a quote for coverage and can only lower the price by reducing or eliminating certain coverage types or policy features.
Here at Integrity Insurance, we prioritize coverage over price. After all, the entire purpose of insurance is to protect you against financial loss. Our team will work to assess your risks and match you with the right coverage to minimize your exposure. Then, we will compare rates and discounts on that coverage from multiple companies until we find one that will give you a competitive price.
At the end of the day, it is your independent agent who is working on your behalf to secure the benefits and discounts you deserve. Give us a call the next time you have questions about a specific feature or benefit you see advertised by an insurance company. Chances are there is more than meets the eye.