Continuing from part 1 of our two-part post about advertised insurance features.
Name Your Price Tool
The Name Your Price Tool is not a benefit, but rather a sales tactic Progressive uses to capture a wider market of drivers. In the wrong hands, it can be particularly risky – especially when drivers drastically reduce or eliminate certain types of coverage in an effort to achieve the lowest possible rate. Doing so could leave a driver dangerously under-insured against major financial losses – the kind that can alter the course of a family’s future.
Instead of tinkering with your coverage, be sure to work with an independent agent who can advise you on coverage levels according to your individual risk profile.
Insurance companies typically pay for the actual cash value of a vehicle when you total it. If you financed your car and still owe a balance, the insurance settlement may not be enough to pay off your debt. GAP coverage fills that gap, allowing you to start with a clean slate.
You could purchase GAP insurance from a car dealership or lender when you purchase your car, but that could mean paying more for coverage you do not need. Unlike these sources, which typically collect years of premiums upfront, a traditional insurance company can add GAP protection to your policy for only the period of time you need it, saving you money when your loan balance falls below the valuation of your vehicle.
Safe Driving Bonus Check
When driving safely is a priority, insurance companies want to reward you. After all, low-risk drivers can be more profitable since they are less likely to file a claim. Allstate’s answer is to reward you with a check for every policy-period you remain accident-free. On the surface, it sounds like a great benefit, but let’s dig a little deeper.
First, you must qualify for the Your Choice Auto Program, which typically requires good credit and a good driving history. Next, you must be willing to pay extra to enroll in this program. Then, you must remain accident-free for the entire six months of your policy to get a check. Finally, the check that comes will generally be worth no more than five percent of the premium you paid during the previous six months, which equates to about $25 for a $500 premium.
If jumping through all of those hoops for what equates to a five percent rebate sounds a little excessive, you have other options. In fact, nearly all insurance companies offer some type of reward for safe drivers, from discounts to premiums that get smaller over time. Talk to an independent agent here at Pentagon Insurance for more information and to explore your options.
Bundle and Save
Finally, we come to the Bundle-and-Save benefit featured in Progressive Insurance commercials. This is a discount the company offers when you purchase home or auto insurance in addition to your auto coverage. Other companies offer it, too, albeit by different names. Essentially, if you are willing to purchase your home and auto or renters and auto coverage from the same company, you can probably qualify for a discount. Be sure to tell your agent if you need other types of insurance, too, as some insurers may offer extra savings for bundling other coverage lines like RV and motorcycle insurance.
Ultimately, remember that your independent agent is your closest advocate when it comes to getting the coverage you need at a competitive price. Our job here at Pentagon Insurance is to look out for your best interests – not the interests of the insurance companies. We can help you sort through all the noise to determine which features are right for you, and which ones you may want to skip.
Peter Cole, insurance agent and partner at Pentagon Insurance Agency in Elk River, MN, began his career in the industry more than 30 years ago. He prides himself on backing up every sale by personally providing service to his clients and by providing the coverage they need at the best possible price.
Contact Peter to discuss your situation today!