Can you name a special car insurance feature off the top of your head? Chances are you can do more than that. With insurance commercials on TV, radio and Internet 24-hours a day; you can probably recite slogans, sing the jingles, and even recall the names of the characters and celebrities that lend their faces to the advertising. In this post, we will discuss many of the most frequently advertised insurance features and where you can find them.
New Car Replacement
Car insurance covers the value of your vehicle, which begins to depreciate the moment you drive it off the lot. If you purchase New Car Replacement coverage from your insurance company, the insurer instead pays to replace your totaled vehicle with another one just like it – a value much greater than a typical settlement.
Liberty Mutual often advertises this benefit in commercials, promising to replace your brand new car with another one if it is under a year old and has fewer than 15,000 miles on it. However, several insurance companies offer similar protections with varying degrees of coverage. Some insurance companies offer better car replacement for used vehicles in addition to new ones. Others extend New Car Replacement beyond the first year. Travelers Insurance, for example, offers New Car Replacement for up to five full years of ownership.
Part of an insurance agent’s job is to ask questions to find out if you may qualify for any special discounts or savings. When State Farm advertises a Discount Double-Check, they are marketing a service that any agent can, and perhaps should, offer. Of course, State Farm agents only double-check for overlooked discounts from State Farm. And independent agent, however, can widen the field of search, comparing discounts from multiple insurance companies to ensure you get a good value for the coverage you need.
Allstate’s Accident Forgiveness commercials claim the company will not raise your rates just because of a first-time accident. To anyone who has ever experienced a post-accident rate increase, this sounds like good news. However, this coverage does come at an additional cost, which generally raises the cost of coverage overall.
If you still prefer the assurance that Accident Forgiveness provides, you do have options. Versions of this coverage are available from a wide range of insurance companies besides Allstate – Liberty Mutual, Acuity, Nationwide, Progressive, and The Hartford just to name a few. One company – Integrity Insurance – even offers it for free to qualifying customers of five years or more.
Name Your Price Tool
Next up is the Name Your Price Tool, a feature advertised by Progressive Insurance. The Name Your Price Tool became popular many years ago and has remained a popular feature even today. Using the tool, a driver can enter information, get a quote, and then adjust coverage options to lower the premium further. Often, drivers looking for a bargain will cut or eliminate coverage to get the lowest possible price. This can put the driver at risk of major financial loss in the event of an accident. Not to mention, the lower Progressive rate still may not beat that of a competitor.
Keep in mind that price should not be the primary factor in choosing an insurance policy. After all, the coverage is designed first and foremost to protect you against risk vulnerabilities. Furthermore, a bare-bones policy designed primarily around price is generally going to fall short of most drivers’ coverage needs. That’s why we recommend skipping this tool and going directly to your independent agent to find an affordable rate for the coverage you actually need.
Continue reading part two of our post, Advertised Insurance Features.