Insurers have a massive market; every person who rents or owns a car or home needs coverage. Most of the major companies spend billions of dollars combined on advertising every year in an attempt to capture as much of the market as possible. Most are battling for customers by promoting specific services or discounts, even if those services and discounts are also available from other insurance companies, too. In this two-part post, we will cover some of the most frequently advertised insurance features and what they mean for you.
Bundle and Save
The first advertised feature is actually a discount promoted by Progressive. It’s called the Bundle-and-Save discount, and it is supposed to encourage drivers to combine auto with renters, home, condo, or townhome coverage. If you purchase multiple lines of coverage from Progressive, the company will reward you with a discount on your premiums.
What the commercials fail to tell you, however, is that nearly all insurance companies will offer discounts to drivers who bundle coverages. Often, the discounts are limited to home and auto or renters and auto, but be sure to tell your independent agent if you have other assets to insure, such as an RV, boat, or motorcycle. In some cases, insurance companies will extend bundling discounts to include those coverage lines, as well.
Who doesn’t love a discount? State Farm enlisted a celebrity football player to help promote its Discount Double-Check, a service that promises to ‘double-check’ for every possible discount you deserve from the company when you purchase your coverage. From discounts for having multiple vehicles on a policy to lower rates for good students, the goal is to save you as much money as possible on your premiums.
It is important to note, however, that while State Farm agents can search their own discount database for extra savings, they will not double-check for savings from other insurance companies. On the other hand, an independent agent will search for discounts from multiple insurers and compare them against each other to determine which will result in the greatest value for the coverage you need.
Name Your Price Tool
Back to Progressive, we visit the Name Your Price Tool, a feature on the company’s website that allows drivers to find out how premiums are affected by policy adjustments to coverage and limits. This tool often sparks interest from drivers who prioritize saving money on car insurance. While value is important, it never outweighs the significance of having the right coverage.
Unfortunately, those who use the Name Your Price Tool may be tempted to eliminate collision coverage or perhaps lower liability limits to save a few dollars on premiums. In the event of an accident, they risk being dangerously under-insured and in jeopardy of a financial disaster. That is why we generally recommend avoiding this ‘tool’ and instead utilizing the services of a real-life independent agent who can achieve savings without sacrificing your coverage.
We’ll leave off part one of this post by addressing a lesser advertised feature called GAP coverage. Due to depreciation, the cash-value settlement from insurance companies is often too little to pay off the balance of a car loan. GAP protection is designed to supplement the collision coverage on your primary insurance policy by paying any balance that remains on your car loan after your insurer reimburses you for your totaled car.
Many insurers will allow you to add GAP coverage to your policy when you purchase your car and drop it once the balance of your loan is lower than the value of your car. That is in stark contrast to many GAP policies sold by car dealers and lenders, which typically cover the entirety of a car loan and require upfront payment of premiums. If you think you may need GAP insurance for your upcoming purchase, contact an independent agent here at Couri Insurance to explore your options.
Continue reading part two of our post, “Advertised Insurance Features.”Share this with others...