If you listen to the radio, flip through TV stations, or surf the web, there is no escaping the incessant commercials for car insurance. In fact, car insurance ads are much more common than they ever were before, with insurers constantly coming up with names for ‘new’ special features to promote to drivers. So how do you know which ones are right for you? In this two-part post, our team will take you behind the scenes of some of the most frequently advertised insurance features and what they mean for you.
New Car Replacement
It feels really good to drive off the lot in a new car, but it feels really bad when you total that brand new car in an accident. Typical car insurance only covers the depreciated value of the vehicle, falling short of the money needed to buy another new car. However, some insurers advertise New Car Replacement coverage, which pays for a brand new car instead.
Here’s how it works: You opt-in to extra coverage on your policy, which typically comes at an additional charge. The insurer agrees to replace your totaled vehicle with a new one of the same make and model if you damage it within a certain period of time – usually, between one and three years or before it reaches a specified number of miles on the odometer.
Companies like Allstate and Liberty Mutual are primary advertisers of New Car Replacement coverage, although several other companies offer similar protections. Traveler’s Insurance, for example, offers new car replacement for up to five years. Other companies offer vehicle upgrades for used cars as well, usually replacing totaled vehicles with one that is a year newer and with fewer miles. By working with an independent insurance agent here at Mayville Insurance, you can determine which company’s new car replacement feature is right for you.
Safe Driving Bonus Check
Allstate’s Safe Driving Bonus Check is an optional policy enhancement designed to reward policy-holders for driving safely. The check is a small gesture to reward safe driving for the duration of each policy period – usually six months. To qualify, drivers must enroll in an eligible tier of the Your Choice Auto Program, which may require an additional fee, a clean driving record, and good credit. After six months of continued safe driving and no accidents, Allstate writes a check worth up to five percent of the paid premium. For a $500 policy, that equates to about $25.
Other companies have similar discounts, such as safe driver discounts that instantly reduce your premium or lower your deductible and policy costs over time. An agent here at Mayville Insurance will be happy to help you explore various safe driving discounts and which ones may be right for you.
Every day, drivers find themselves in inconvenient or perhaps even dangerous situations. If you experience a breakdown, a flat tire, or lock yourself out of your car, the Liberty Mutual commercials promise their Roadside Assistance coverage will be there, 24-hours a day. Of course, most other companies offer some type of Roadside Assistance, too, although the details and coverage may vary from insurer to insurer. Here at Mayville Insurance, we know that policy-holders who have young drivers, a long commute, or who drive at night may be particularly interested in this coverage. Regardless of who your insurer is, we can help you get Roadside Assistance coverage that meets your needs.
Bundle and Save
Bundling discounts are everywhere – including insurance companies. You may have seen Progressive commercials advertising extra savings when you bundle your auto insurance with home or renters insurance. While it’s true the company provides discounts for buying two lines of coverage from them, nearly every other insurance company does too. In fact, the savings are not always limited to home and renters insurance. Some companies also offer discounts to drivers who purchase other forms of coverage, such as RV and motorcycle insurance. Be sure to tell your independent agent which types of insurance you need to help ensure a good value for your coverage.
Continue reading part two of our post, Advertised Insurance Features.