All those car insurance advertisements you see on TV have one thing in common: They want your business. On a typical day, the average driver will see multiple insurance commercials, most of which promote different types of services or discounts offered by various companies. This two-part post seeks to clarify some of those features and help you better understand how they could affect you.
Bundle and Save
When you purchase car insurance, chances are your insurer is going to try to capture your home or renter’s coverage needs too. Insurance companies often extend discounts to drivers who purchase more than one line of coverage, whether it is home and auto or some other combination. Progressive Insurance commercials call it the Bundle-and-Save discount, but the savings are available from most other insurers, too. Tell your independent agent if you have multiple vehicles, property, or even recreational vehicles like an RV or motorcycle, as there may be bundling discounts available for most or all of your coverage needs.
Safe Driving Bonus Check
Save drivers cost insurance companies less to protect since cautious driving practices tend to prevent accidents. If you consider yourself a safe driver, the Safe Driving Bonus Check probably sounds like a good perk. After all, who wouldn’t want a cash reward for safe driving?
When you start to examine the Safe Driving Bonus a little further, though, you find that it comes with some heavy stipulations. First, you must have good credit and a clean driving history, which qualifies you for enrollment in an eligible tier of the Your Choice Auto Program. Next, you must pay to enroll in the program, which instantly raises your overall cost. Finally, you must remain accident-free for the duration of each policy period to get your bonus. In most cases, bonuses are worth no more than five percent of the premium paid during the previous policy period. If the bonus is not enough to meet the payment threshold, it must be applied to future premiums or else forfeited.
Alternatively, you could talk to an agent here at Frydach Insurance about discounts and benefits for safe drivers that are available from various Wisconsin insurers.
Unless you buy your cars with cash or big down-payments, you’ve probably heard of GAP insurance before. This coverage is designed to pay the difference between the insurance company settlement and the remaining balance on your car loan if you total your vehicle in an accident. Depending on how rapidly your vehicle depreciates and how slowly you pay off the balance, this coverage could potentially save you hundreds or even thousands of dollars. However, most drivers do not need coverage for the life of the loan.
We recommend purchasing GAP protection through an independent agent for a couple of reasons. First, an independent agent can shop around to make sure you are getting a competitive rate on you GAP and auto coverage. Second, by adding GAP to your car insurance and not purchasing it independently from a car dealership or lender who charges you years of premiums upfront, you are able to drop the coverage once you no longer owe more on your car than it is worth. This helps save you money and prevents you from purchasing coverage you do not need.
Name Your Price Tool
We’ll pause part one of this post with the Name Your Price Tool from Progressive. For the amount of time this feature has been advertised, it is highly likely that millions of people have used it to instantly save money on car insurance. Most probably received a quote from Progressive, only to find that getting an even lower price requires reducing or eliminating certain types of coverage.
Since insurance is designed to protect you and your future, it does not make much sense to cut down to the bare minimum. Doing so leaves you at risk of being under-insured and vulnerable to major financial losses that could total tens or even hundreds of thousands of dollars. Instead, try working with an independent agent who can assess your unique risk factors. Then, compare prices for the coverage you actually need from multiple insurers to find a policy that works for you.
Continue reading part two of our post, Advertised Insurance Features.