Car insurance commercials are everywhere, from television and radio to the Internet and even in your own mailbox. It’s not just about inundating you with advertising but also building a strong brand that is known for particular benefits or features. In this two-part post, we will cover some of the most commonly advertised insurance features and how you can better know which ones may be right for you.
Bundle and Save
We’ll kick things off with the famous Bundle-and-Save discount advertised by Progressive Insurance. With this discount, Progressive awards you with lower rates when you purchase other lines of coverage in addition to your auto insurance. It is one of the ways that insurance companies attempt to get all of your business – not just a single line of coverage.
However, it’s not just Progressive that offers savings for bundling. In fact, nearly all insurers will offer savings if you bundle auto with home or renter’s insurance. Some may even throw in extra savings when you purchase coverage for another car, or perhaps your boat, motorcycle, or RV. If you need multiple lines of coverage, let an independent agent here at Wheaton Insurance help you determine which insurance company will offer the greatest savings.
Roadside Assistance is help when you need it the most. Chances are you’ve seen the Liberty Mutual commercials advertising help when you have a flat tire, run out of fuel, or lock yourself out of your car. They are just one of many companies that offer this type of coverage, usually with 24-hour assistance. We typically recommend Roadside Assistance for policy-holders who have young drivers, long commutes, or who simply want peace of mind knowing help is available when needed.
If you crash your car, the insurance company will typically cover the market value of your vehicle based on depreciation – not the balance of your loan. GAP protection promises to pay the remainder of your car loan balance that exceeds the amount covered by your primary insurance if you total your vehicle in a collision.
While GAP insurance can save you thousands, it is also easy to overpay for this coverage, particularly if you purchase it from a car dealership or lender. Coverage sold from these sources typically requires an upfront premium to be paid or added to your loan, which could add up to as much as $400 or more. That premium covers the entirety of your loan, including in the final years when the balance falls below the value of your vehicle.
Instead of paying too much for coverage you no longer need, we recommend talking to an independent agent here at Wheaton Insurance. We can help you add GAP coverage to your policy and remove it when you no longer need it, assuring you only pay for the coverage you want and need.
Name Your Price Tool
We round out part one of this post by addressing the Name Your Price Tool from Progressive. In a world where you can name your own price for a hotel, it’s also tempting to set a maximum price you are willing to pay for car insurance. The problem with this tool, however, is that by naming your own price, it’s easy to leave yourself under-insured. Instead of encouraging you to compare rates from other insurers, the Name Your Price Tool makes it easy to get closer to your preferred rate by reducing or eliminating certain types of coverage and increasing your exposure to risk.
Ultimately, the upfront savings could pale in comparison to the financial damages you could be responsible for after an accident. That is why we always recommend working with an independent insurance agent who understands your unique coverage needs and is capable of comparing rates from multiple carriers.
Continue reading part two of our post Advertised Insurance Features.