We continue with Part Two of our post, Advertised Insurance Features.
Name Your Price Tool
When you’re looking for a way to trim down your spending, naming your own price for insurance might seem like a good place to start. Progressive’s Name Your Price Tool makes it easy to see how various adjustments to your policy can affect the price you pay for coverage. However, it also makes it easy to under-insure yourself. After all, who needs $300,000 of liability protection when $50,000 seems like plenty?
The truth is accidents can happen to anyone – even the safest of drivers. If you under-insure yourself in an attempt to save on premiums, you could end up facing financial damages worth tens or even hundreds of thousands of dollars. Instead of fiddling with coverage limits and other factors, talk to an independent agent here at Pagel & Associates to learn ways of saving on premiums without jeopardizing your coverage.
Car insurance carries many benefits, but its primary purpose is to protect your vehicle and protect your finances against damage stemming from an accident. It’s the assurance you pay hundreds of dollars per year to have, but you hope you never actually need. If you are in an accident, you may be surprised to know your rates could go up by as much as 40 percent of more – just for having one accident!
Accident Forgiveness is designed to protect you against rising rates after a first-time accident. Allstate promotes this benefit in various commercials, promising your rates won’t go up just because of an accident. Of course, it costs extra to enroll in Accident Forgiveness, and you may have to meet certain eligibility criteria, such as a good driving record and good credit. If you still feel like this benefit is something you want in your car insurance, talk to an independent agent here at Pagel & Associates about your options. It turns out that Allstate is not the only company offering this benefit. You can also choose from several others like Liberty Mutual, Nationwide, The Hartford, Progressive, and Integrity Insurance, the latter of which offers accident forgiveness for free to eligible customers of five years or more.
Safe Driving Bonus Check
If you drive safely and meet a lot of other requirements, Allstate will send you a check every six months to reward you. It’s all the ‘other requirements’ that many people don’t pick up on just from watching the commercials. First off, you must enroll in the Your Choice Auto Program, which generally requires good credit, a stellar driving history, and an extra charge on your policy. Next, you must remain accident-free for six months.
At the end of your policy, Allstate will give you a bonus worth up to five percent of your paid premium. If the value of that bonus reaches a certain threshold, you get the bonus in the form of a check. Otherwise, it is credited to your next policy’s premium. As an example, a $500 policy would yield no more than $25 every six months – perhaps enough to take a friend to lunch.
Alternatively, you could talk to your independent agent about other safe driving programs available from various insurers. Some may provide upfront premium discounts, and others may gradually lower the cost of premiums or deductibles over time.
Bundle and Save
Lastly, we have the Bundle-and-Save discount advertised by Progressive. This is arguably one of the most valuable discounts available to drivers, and the good news is it is available in some form from nearly every insurer. To benefit, you simply add renters or home insurance coverage when you purchase your auto coverage. Some companies may even offer the discount for other types of coverage, such as RV and motorcycle. Talk to your independent agent to find out which company may offer the most lucrative savings for your individual needs.
Remember, we here at Pagel & Associates are here to answer your questions and find you the coverage and savings you deserve. Next time you see an insurance commercial that grabs your interest, give us a call to find out what’s really behind the advertising.