Safe Driver Bonus Check
If you are a cautious driver, you deserve to be rewarded for your safety behind the wheel. Allstate’s Safe Driver Bonus Check aims to do just that, rewarding you with a check every six months you remain accident-free. Think of it as a reimbursement of up to 5 percent of your paid premiums. If you pay $100 per month to insure one vehicle, for example, your bonus check could be worth up to $30. To qualify for a Safe Driver Bonus Check, Allstate also requires a good credit score, a clean driving record, and enrollment in the Your Choice Auto Program, which comes at an additional cost.
While Allstate is famous for this policy ‘perk,’ other companies offer similar benefits for similar purposes. For example, some companies offer upfront discounts for safe drivers. Others reward accident-free drivers with deductibles and premiums that get gradually lower over time.
GAP protection may not get much airtime on TV or the radio, but it is still a very popular (and sometimes misunderstood) insurance feature. Drivers typically purchase GAP coverage when they owe more on the balance of a car loan than the vehicle is actually worth. Since car insurers only cover the actual cash value of a vehicle, GAP insurance can help pay off the balance of the loan if you total your vehicle in an accident.
While purchasing GAP protection can be a good idea, be careful where you get it from. Car dealers and lenders often sell this coverage when you first finance your vehicle, offering protection for the life of the loan in exchange for an upfront payment – usually about $400. However, you could be paying for more coverage than you need.
Most loan balances eventually fall below the actual cash value of the vehicle, eliminating the need for GAP protection. Why pay for coverage you do not need? Always talk to an independent agent here at Feivor Insurance before purchasing insurance protection you may not need. In some cases, GAP coverage is automatically included with enrollment in certain programs offered by some insurers. If not, it may still be possible to purchase GAP protection from your car insurer and drop it later when you no longer need it.
State Farm’s Discount Double-Check claims to get you all the discounts you deserve. Do not be fooled, though; any insurance agent can double check for discounts, but only an independent agent can search and compare discounts available from multiple insurers instead of just one. From defensive driving and good student discounts to vehicle safety and low mileage discounts, we know which questions to ask and how to help you get the most value from the coverage you need.
New Car Replacement Coverage
There’s nothing quite like that new-car smell, but you risk losing it as soon as you drive off the car lot. If you total your brand new car, chances are your insurance payout will not cover the cost of a brand new car. Fortunately, some insurers offer benefits designed to prevent such a loss.
For example, with Liberty Mutual New Car Replacement, a driver who totals his brand new car gets to replace it with a new one of the same make and model. To qualify, the vehicle must be less than one year old and have fewer than 15,000 miles. Also, the cost to repair it after an accident must exceed the cash value of the car.
Besides Liberty Mutual, several other insurance companies offer similar benefits for car insurance policies. Travelers Insurance offers a feature that guarantees new car replacement within the first five years of ownership. Others extend coverage for a newer car with fewer miles to drivers of used vehicles.
Name Your Price Tool
The Name Your Price Tool is one of the most controversial advertised insurance features. When Progressive began marketing this ‘tool,’ it prioritized price before coverage, which ultimately puts unsuspecting drivers at risk. When you name your price, Progressive builds a policy designed to fit that budget – even if that means cutting down or eliminating very important coverages. It may not be until you file a claim that you realize the tens of thousands of dollars in coverage reductions you took were not worth saving a few bucks each month.
Here at Feivor Insurance, we commit to always putting your needs first. We believe there are better ways to save on car insurance than lowering your coverage. Talk with an agent at our office to learn how comparison shopping can minimize your insurance costs.
Bundle and Save
If you want to save money on car insurance, Progressive commercials suggest bundling multiple coverages together to get a discount. For example, if you own a home and a car, insuring them both through the same company could get some big savings. However, these discounts are not just limited to Progressive. In fact, nearly all insurers offer discounts when you buy your home and auto or renters and auto insurance from the same provider. Some even extend the discounts to other less common coverage lines, such as RV and boat insurance.
This type of coverage is available to help you when your car breaks down. It can provide peace of mind knowing there is always someone to call for help if your battery dies, you blow a tire, or you run out of gas. Although Liberty Mutual advertises Roadside Assistance as a feature of its car insurance policies, you can also find some form of Roadside Assistance coverage from nearly all other car insurers as well. Some offer it as an optional add-on, while others roll it into a package of coverages with extra perks for travel and lodging. Some insurance companies even offer it by default at no additional charge.
Insurers view collisions and claims as indicators of future risk. If you cause a car accident, you probably expect your insurance rates to go up. Allstate made their Accident Forgiveness program famous by claiming your premiums will not go up after your first accident. However, there are several other companies, such as Nationwide, Progressive, and The Hartford, that also offer this benefit to their best customers.
To qualify, drivers typically need a clean driving history free of accidents and moving violations. Some insurers may even implement additional requirements, such as good credit. Also, the guidelines for forgiving an accident can vary from insurer to insurer. Some companies may offer immediate forgiveness, whereas others make you wait a while after becoming a policy-holder. All of that usually comes at a cost, too. At Allstate, for example, you must enroll in the Your Choice Auto Program and upgrade to package that includes Accident Forgiveness.
As you can see, the insurance benefits advertised on commercials are often more complex than they first may seem. They may also be available from other insurers besides the ones promoting them. To ensure you are getting a good value for the coverage you need and want, always work closely with an independent agent here at Feivor Insurance.