There’s an advertisement for car insurance in nearly every commercial break. Most of them are promoting some special feature that a particular insurer offers, but they fail to tell you that the same or similar benefits may also be available from another insurer. In this post, we will review what’s really behind some of the most frequently advertised insurance features and what they could mean for you.
State Farm’s Discount Double-Check commercials are doubling down on the search for discounts. They imply that their agents can uncover important, money-saving discounts that may be easily overlooked by inexperienced eyes. Of course, their agents are only double-checking for discounts from their own company, which significantly narrows the potential savings. Furthermore, any agent can double-check for insurance discounts, but only an independent insurance agent can compare savings from multiple insurers.
GAP protection is not advertised as often as other insurance features, but it is still an important and sometimes misunderstood coverage for drivers who finance vehicles – especially those who make low down-payments or accept lengthy repayment terms. That is because it can take years for a new car loan balance to fall below the depreciated, actual cash value of the vehicle. If you total your vehicle while you still owe money on it, the insurance company’s settlement may not be enough to pay off the balance of your loan. GAP protection pays the difference, preventing the need to continue paying out of pocket for a car you no longer have.
Just be careful where you decide to purchase your GAP coverage from. Sometimes, car dealers and lenders offer this protection at the time you purchase your car, conveniently adding the premium to the balance of your loan. However, most borrowers do not need GAP coverage for the entire duration of the loan since the balance eventually falls below the car’s value. That means you could be paying extra money for extended GAP protection that you do not need. By asking your independent agent to add GAP coverage to your insurance policy instead, you may be able to save money by dropping the coverage as you pay down your loan.
New Car Replacement
When you total your brand new car, the insurance company is unlikely to compensate you for the price you paid for the vehicle – even if it is only a few months old. Instead, insurers typically cover vehicles for their actual cash value, which thanks to rapid depreciation, is usually much less than the retail price. With New Car Replacement coverage, insurers may instead cover the cost of a brand new vehicle of the same make and model.
Liberty Mutual is one of several insurance companies that advertise or offer this coverage, and it’s hard to miss their commercials for New Car Replacement. With their plan, you get compensated for the cost of a new vehicle if you total your car in the first year you own it or before you reach 15,000 miles. Other insurance companies offer similar benefits, and some extend coverage for used cars, as well. Travelers Insurance, for example, offers a form of new car replacement protection for up to five years.
In nearly all cases, the extra coverage for a new vehicle comes at an additional cost. Talk with an agent here at Vanyo Insurance for help determining if it could be right for you.
Imagine going years or even decades without an accident or even a traffic violation – the definition of a safe driver. One day you fail to yield right-of-way, causing a minor collision. Your insurance company pays the claim, and you move on, only to see your premiums soar when your policy is renewed. If you had Accident Forgiveness, you would not face surcharges or penalties for a first-time accident.
Allstate is the primary advertiser of Accident Forgiveness, but there are several other insurance companies like Acuity, Integrity, Nationwide, Progressive, and Liberty Mutual that offer similar protection. One company even offers the coverage for free to eligible customers of five years or more.
Safe Driving Bonus Check
You can save money just by driving safely. Most insurance companies offer some type of discount for safe driving, but Allstate’s Safe Driving Bonus Check is a different kind of financial incentive that is frequently promoted in TV commercials and other types of advertising. The Safe Driving Bonus Check is worth up to five percent of paid premiums and awarded to eligible drivers who remain accident-free each policy period. However, eligibility is based on good credit, a good driving history, and enrollment in the Your Choice Auto Program. It also comes as an additional charge.
Here at Vanyo Insurance, we know the difference a safe-driving discount can make in a policy’s premiums. We search for discounts and safe-driving incentives from a wide range of insurers that are financially advantageous for our customers.
Name Your Price Tool
With Progressive’s Name Your Price Tool, you decide how much you want to pay for car insurance, and Progressive will present options for achieving that rate. So what’s the catch? When you use this tool to lower your rates, you are typically presented with options to reduce or eliminate certain types of coverage. With too little coverage, you could end up with a major financial loss in the future, such as if you total your car with no collision insurance or if you cause an accident with too little liability protection.
Remember, insurance is supposed to protect you against major financial losses – not leave you vulnerable to them. When it comes to getting a better price on car insurance, leave that to your independent insurance agent here at Vanyo Insurance. We can shop multiple carriers to find the right rate without sacrificing your coverage.
If you’ve ever experienced a break-down or a flat tire, you know how important it is to have the tools or assistance during those times. Roadside Assistance coverage can give you peace of mind knowing you or other drivers on your policy – particularly those who may feel vulnerable in such a situation – will have the help you need, 24-hours a day. Right now, Liberty Mutual is advertising its optional Roadside Assistance protection on commercials, but you can obtain similar protection from nearly any carrier.
Bundle and Save
Finally, we complete part two of this post with a savings feature advertised by Progressive. Chances are you’ve seen commercials telling you how easy it is to Bundle and Save when you purchase home and auto insurance from Progressive. However, nearly all insurance companies offer incentives to drivers who also purchase other coverage lines, such as home, renters, or even RV and motorcycle insurance. Ultimately, one insurer may offer you a better discount depending on your insurance needs, which is why it is important to work with an independent agent when shopping for coverage.
Remember, your independent agent does not work for anyone except you. It is our job here at Vanyo Insurance to get all of the coverage you want and need at the best value we can find. From double checking for discounts to ensuring you are protected against major losses, be sure to contact our team for your coverage needs.