We continue with Part Two of our post, Advertised Insurance Features.
How many times will you crash your car? While there is no way to know the answer to that question, statistics suggest that the average driver will file about four accident claims during a lifetime. That means that even if you are a safe driver, it could still happen to you. A typical accident claim can cause insurance premiums to skyrocket and remain high for many months or years. Perhaps that is why Allstate started advertising its Accident Forgiveness program. It promises that drivers who enroll in this program will not see their insurance rates go up just because of a first-time accident.
If that sounds like a benefit you might want to take advantage of, you may be happy to know you have options. In fact, several insurance companies offer similar benefits, including Acuity, Nationwide, Travelers, The Hartford, Liberty Mutual, and Progressive. It typically comes an additional cost, although Integrity Insurance is known to offer accident forgiveness for free to customers of five years or more.
Totaling your car before you pay off the car loan could leave a big financial gap between your insurance reimbursement and the balance you owe. Instead of getting stuck with a few thousand dollars to pay for a totaled vehicle, GAP insurance promises to pay off the balance of your loan and give you a clean financial slate.
You can purchase GAP coverage from several sources. Most often, a car dealer or lender will offer the protection the moment you finance a car. They typically charge the entire insurance premium upfront or tack it onto the balance of your loan. The problem is you are unlikely to need GAP coverage for the length of your loan, as balances tend to fall below vehicle valuation after a few years.
Instead, we recommend talking with an independent agent here at Mayville Insurance to add GAP coverage to your insurance policy for the first few years you own the car. This way, you pay for only the coverage you want and need.
Name Your Price Tool
Progressive’s Name Your Price Tool became famous when the company started advertising it on commercials several years ago. While it may seem beneficial for cost-conscious drivers, it can actually do much more harm than good. For example, imagine a driver using Progressive’s tool in hopes of paying only a certain price for coverage every month. Perhaps the driver’s risk profile does not qualify him for preferred prices, which means he must cut coverage in order to achieve the targeted rate. While he successfully lowers his monthly costs, he ends up under-insured and eventually on the hook for tens of thousands of dollars due to an at-fault accident.
Don’t play around when it comes to insurance. The fact is insurance is designed to protect you against financial loss. Always work with your independent agent to ensure you are getting a good value for your coverage.
Finally, we come to State Farm’s Discount Double-Check. This is not so much a specific type of coverage as it is a benefit State Farm created for marketing purposes. The commercials promise that State Farm will scour through your insurance policies to ensure you are getting all the discounts you deserve. The truth is any insurance agent could do the same thing, but only an independent agent can compare your discounts against those offered by other companies to determine which one offers you the best deal.
Here at Mayville Insurance, we help you find the truth amid the hype. We know the ins and outs of insurance benefits and discounts, and we can help you compare your options across our entire platform of insurers. Call us today to find out how working with an independent agent can work to your benefit. We look forward to serving you soon.