We continue with Part Two of our post, Advertised Insurance Features.
Safe Driving Bonus Check
The Safe Driving Bonus Check sounds like a dream. After all, who wouldn’t want the insurance company to pay them for driving safely? Under this program, Allstate provides a bonus every six months for eligible drivers who remain accident-free for their policy term. The bonus is worth up to five percent of the premium paid, which equates to about $30 for a $600 policy. It can either be applied to the next policy’s premium or reimbursed to the driver in the form of a check.
It is worth noting that in order to qualify for a Safe Driving Bonus Check from Allstate, you must have a clean driving record and a high enough credit score to enroll in the Your Choice Auto Program, which costs extra to be a part of. Alternatively, you could work closely with an independent agent here at Smith Insurance to compare other safe-driving discounts and benefits available from other insurers.
GAP insurance is coverage that insures you against the gap between what you still owe on your car and the cash-value settlement the insurance company pays if you total your car. This protection is optional and can be added to your full-coverage policy to pay off the balance of your loan after an accident.
Though GAP is not as frequently advertised as other insurance features, it can still save you thousands. Just beware of GAP coverage sold by alternative sources, such as a car dealer or lender. Though effective, the premiums are typically paid in advance for the duration of the loan. However, most buyers only need GAP coverage until the loan balance falls even with the car’s value. If you add GAP protection to your car insurance policy instead, you can drop the coverage when you no longer need it, potentially saving you money.
Bundle and Save
Progressive Insurance commercials promote the Bundle-and-Save discount, but our team here at Smith Insurance and Financial Services can help you find similar discounts from a wide range of insurers. Most companies want to insure both your home and auto and they are willing to discount your premiums in exchange for more of your business. Some may even include discounts for bundling auto with other types of coverage, such as renter’s, RV, boat, or motorcycle insurance.
Lastly, we come to Accident Forgiveness, a feature advertised by Allstate and other insurance companies. Under this program, Allstate promises not to raise your insurance rates just because of an accident. Since premiums can go up hundreds of dollars after a single collision, Accident Forgiveness can bring welcome relief for safe drivers who rarely experience collisions.
What many drivers may not know is that it costs extra to enroll in Accident Forgiveness. Considering the extra expense, it is worth noting that several other insurance companies like Liberty Mutual, The Hartford, Progressive, Nationwide, Acuity, and Integrity also offer a version of accident forgiveness. Though most charge extra for the benefit (Integrity offers it free to certain long-term customers), you could find tremendous savings by comparing coverage and rate options from multiple insurers using an independent agent.
Remember, your agent is your closest advocate in the search for quality coverage at affordable prices. Regardless of what the insurance commercials come up with next, always talk with your agent if you have questions about advertised insurance features.