We are inundated with car insurance commercials and Internet ads here in Wisconsin. It seems like no matter where you look; there is another insurance company advertising a special benefit or feature that sets it apart or makes it more appealing than others. With so many advertised insurance features, it can be challenging to sort through the commotion and figure out which insurer is really right for you. In this two-part post, we will explore some of the most frequently advertised insurance benefits and whether they could be right for you.
First up is a special coverage call GAP insurance. You may have been offered this coverage by a lender or car dealership when you financed a brand new vehicle. Signing up for it typically costs about $400 added to the balance of your loan, but it helps ensure the full balance is paid in full if you total your vehicle before you pay it off. Since full-coverage auto insurance only covers a vehicle for its actual cash value, GAP insurance could save you thousands of dollars if the balance of your loan is more than the value of your car.
While we consider GAP coverage a helpful benefit for new-car buyers, we encourage you to compare coverage options from your independent agent instead of your lender or dealer. If you add GAP protection to your car insurance policy, you can drop the coverage when your loan balance falls below your car’s value. This could save you money and prevent you from paying for coverage you do not need. With lender or dealer-sold coverage, the entire premium is paid up front, likely providing unnecessary coverage for the final years of your loan.
Bundle and Save
From airlines and hotels to TV, phone and Internet providers, it seems like everyone is offering extra savings when you bundle multiple services together. Progressive jumped in on the action with Bundle-and-Save commercials that promise discounts when you purchase both your home and auto insurance from the same company. If you aren’t a homeowner, that’s okay. Bundling discounts are also offered to drivers who bundle their car insurance with renter’s townhome, or condo insurance.
The thing that Progressive commercials fail to tell you, however, is that bundling discounts are also available from nearly every other car insurance company, which vastly expands your options when it comes to saving. Here at Philleo Agency Insurance, we help Wisconsin drivers find the bundling discounts that benefit them most. With some companies, that could mean extending additional discounts for boat, RV, or motorcycle insurance.
Name Your Price Tool
If you’re on a budget, Progressive wants you to use the Name Your Price Tool to decide how much you want to pay for coverage. It may sound convenient since you can virtually guarantee the rate you want, but at what cost?
Like many things that sound too good to be true, using the Name Your Price Tool allows you to cut corners that could actually cost you much more in the future. The problem with this tool is that it reduces or eliminates very important coverages to achieve a target price. The average driver may do so unaware of the increased risk exposure, potentially facing a major financial loss due to denied claims.
Instead of fidgeting with the features in your insurance policy, let an independent agent here at Philleo Agency Insurance find the savings you are looking for. We know how to shop and compare rates from multiple insurance companies, as well as the discounts they offer. We can help you obtain a good value without sacrificing the quality of your coverage.
Accidents happen. If it happens to you, what would happen to your insurance premiums? Depending on your insurer, you can expect rates to rise significantly for an accident-related claim – especially if the incident was your fault. Allstate wants to lessen the blow by offering ‘forgiveness’ for a first-time accident if you are enrolled in an eligible tier of the Your Choice Auto Program.
You’ve probably seen Allstate advertise this feature on television as Accident Forgiveness. However, many other companies offer similar benefits, including Acuity, Progressive, Nationwide, The Hartford, and Liberty Mutual. Another insurer – Integrity Insurance – even offers accident forgiveness at no cost after you’ve been a policy-holder for at least five years.
Continue reading part two of our post Advertised Insurance Features.