Radio, television, and Internet ads are filled with insurance companies touting some ‘special’ benefit they say sets them apart from the rest. The commercials make it seem like these benefits are only available from the company advertising them when that simply is not the case. In fact, many ‘special coverages’ are unique only in name – not in their actual benefits. In this two-part post, we will review some of the most commonly advertised insurance features and what they really mean for you.
If you or a driver on your policy has ever been at-fault for a car accident, chances are you have seen first-hand the financial impact it can have on your premiums. Perhaps that is why Allstate’s ‘Accident Forgiveness’ commercials are so appealing. After all, it sounds pretty good to avoid paying more for coverage just because of a first-time accident.
However, it is not just Allstate that offers this benefit to policy-holders. It goes by different names from other companies, but you can find benefits similar to Allstate’s ‘Accident Forgiveness’ from a handful of other companies like Acuity, Nationwide, Travelers, The Hartford, Liberty Mutual, Nationwide, and Progressive. The added costs vary between companies, although Integrity Insurance offers it for free for policy-holders who have been with the company for five years or more.
Bundle and Save
Insurance companies like to reward loyalty. They know that most drivers also have more than just a car to insure; many also have homes, RVs, personal belongings, or even another vehicle to insure. To get more of your business, insurance companies offer discounts for purchasing multiple lines of coverage from the same company. Progressive is well known for their ‘Bundle-and-Save’ commercials, but they are not the only company offering extra savings. In fact, nearly all insurance companies provide discounts for multiple coverage lines – specifically for home and auto or renters and auto. Some will also offer discounts for bundling additional coverages, such as RV and motorcycle insurance. This ‘bundling’ discount is usually applied automatically and at no additional charge.
Name Your Price Tool
The ‘Name Your Price Tool’ is intriguing for many drivers – especially cost-conscious drivers looking to stay within their budgetary confines. Progressive began marketing this ‘tool’ to customers as a way to attract business, but it is really more a disservice than a benefit. That is because it prioritizes price over coverage and reduces or eliminates coverage in an effort to achieve a lower premium. Ultimately, this puts the policy-holder at-risk of being under-insured for future losses.
Instead, we recommend working with an independent insurance agent who understands the amount of coverage you need. We shop and compare rates on your behalf to find the best possible value.
Discount Double Check
The ‘Discount Double Check’ is a marketing phrase used by State Farm to suggest that other insurance companies may be overlooking valuable discounts that might otherwise save you money. The truth is that any insurance agent can double check for discounts on your policy, but only an independent agent can check for discounts from multiple companies – not just one. You could go straight to State Farm to double check for discounts from them, or you can use an independent agent who could double check for discounts from multiple companies.
Continue reading part two of our post Advertised Insurance Features.