Insurance companies are constantly on the look-out for new customers. They are in fierce competition with each other, advertising around the clock in an effort to attract a greater share of the market. Since we all need insurance, we all tend to pay attention to what these companies are offering. However, it can be difficult to see through all of the marketing jargon and determine which benefits are worth our time, and which ones we should skip out on. In this two-part post, we will explore the details behind some of the most frequently advertised insurance features and where you can get them.
We’ll start things off with the State Farm commercials that advertise the Discount Double-Check. This marketing effort is the company’s way of telling you they will go out of their way to make sure you are getting all the discounts you qualify for. Of course, any other insurance agent could do the exact same thing, and should. Agents like those who work for State Farm are loyal to the companies they work for and can only double-check for discounts from one carrier. When you use an independent agent here at Pagel & Associates, we can compare discounts from many different insurance companies on your behalf.
New Car Replacement
Some people save years for a brand new car, only to crash and total it shortly after buying it. Most insurance policies only cover vehicles for their actual cash value, which quickly drops due to depreciation. In fact, the insurance settlement could be thousands less than what you paid for a new car the same day you buy it!
New Car Replacement coverage provides a guaranteed replacement of your vehicle if you total it, swapping it out for another vehicle of the same year, make, and model. You may have seen this benefit promoted by Liberty Mutual, but several other insurance companies offer similar protections. Depending on your needs, an independent agent can match you with an insurer that offers replacement for new or used vehicles – in some cases up to five years of ownership.
Breakdowns happen. So do flat tires, lockouts, dead batteries, and empty fuel tanks. If you find yourself stranded on the side of the road, who will you call? Liberty Mutual wants you to call them since they offer Roadside Assistance as an optional coverage for their policy-holders. However, you can add Roadside Assistance coverage to nearly any policy with any insurer, although the exact coverage details may vary from company to company.
We’ll round out part one of this post by talking about a less frequently advertised coverage called GAP insurance. This protection is designed to make up the difference between your insurance settlement and what you owe on your vehicle if you total your car. Essentially, GAP coverage will pay off the balance of your loan if you owe more on your car than it is worth.
Most insurance companies will let you add GAP coverage to your policy when you finance a vehicle, but lenders and car dealerships also offer this protection at the time of the sale. With dealer and lender-offered coverage, you typically pay upfront for coverage that lasts the duration of the loan – even after you pay down the balance and no longer need it. That means you could be spending more money for coverage you do not need. With traditional insurers, you can drop the coverage once you pay down the loan balance, which usually occurs within the first few years.
Continue reading part two of our post, Advertised Insurance Features.