We continue with Part Two of our post, Advertised Insurance Features.
One thing insurance companies are known for is the many discounts they provide to their policy-holders. Certain traits and characteristics can indicate a lower-risk driver, and many companies are willing to extend extra savings in exchange. One such company, State Farm, promises to double-check for discounts to ensure you get all of the extra savings you deserve. Known as the Discount Double-Check, State Farm often promotes this feature in commercials, even though it is no different from what any other agent could do.
With a State Farm agent, you only get a double-check for discounts from State Farm. An independent agent here at Carrigan Insurance, however, can look for discounts from multiple companies and then compare them against each other to ensure you are optimizing your savings.
GAP protection is another important coverage offered by insurance companies, although it is not as frequently advertised as other features. GAP coverage covers the difference between your vehicle’s cash value and the amount you still owe on your vehicle. Essentially, this supplemental coverage can pay off the balance you owe for your totaled car loan if your collision damage settlement falls short. That can save you hundreds or even thousands of dollars if you happen to total your vehicle soon after purchasing it.
If you decide to purchase GAP protection, be mindful of where you get it. Lenders and car dealers often sell third-party GAP coverage, but it requires that you pay hundreds of dollars in premiums at once or add it to your car loan balance. Though the coverage typically lasts for the duration of the loan, that is typically longer than you actually need. Instead, we recommend talking to an independent agent about adding GAP protection to your car insurance policy so that you can drop the coverage as you pay down the loan and no longer need it.
If you’ve ever experienced a rate increase after a car accident, you know how expensive these penalties can be. Allstate offers a benefit called Accident Forgiveness, which promises your insurance premiums will not go up after a first-time accident. This could apply to the primary driver on a policy, or it could also extend to other drivers, such as a teen who is statistically at higher risk of causing an accident.
Several insurance companies offer a version of Accident Forgiveness. Shopping and comparing coverage from multiple insurers can help you get a competitive rate for a forgiveness policy. Acuity, The Hartford, Nationwide, and Progressive are examples of insurance companies that offer Accident Forgiveness, and Integrity Insurance offers if for free to eligible drivers after five years or more.
New Car Replacement
Finally, we conclude with New Car Replacement coverage, a feature that is frequently advertised by Liberty Mutual Insurance. With this coverage, Liberty Mutual promises to pay for a brand new car to replace your totaled car if it is less than a year old and has fewer than 15,000 miles. This is in stark contrast to standard collision insurance, which generally reimburses drivers for only the depreciated cash value of a totaled vehicle. Since the cash value is typically less than the retail price of a vehicle, having New Car Replacement could save you from draining more of your personal savings to purchase another vehicle.
Several insurance companies offer New Car Replacement, although the benefits and features vary from company to company. For example, some only cover replacement for a year, whereas others, such as Travelers Insurance, may extend replacement protection for up to five years of ownership. Some insurance companies also offer better car replacement for used cars, promising to replace a totaled vehicle with one that is a model-year newer.
For more information about advertised insurance features or how you can add a particular benefit to your coverage, contact an independent agent here at Carrigan Insurance today.