You have seen the ads. Auto insurance companies want your business, and they are going to great lengths to get it. The discounts, the insurance bundles, the devices, the bargaining chips, the rewards, and all of their other enticements make it difficult to choose. Instead of choosing an insurance company/provider based on rewards and enticements, which can make the decision difficult, you should be basing your choice on coverage, deductibles, and cost. Still, if you want to consider the tempting offers by all auto insurance coverage companies, here is how to decide if any of the rewards or enticements are worth it.
Accident Forgiveness
So, the concept here is that when you have a little fender bender land on your driving record, the insurance company looks the other way. A small accident can impact your insurance rates just as much as a big one. The difference is that you do not file a claim on a minor accident because it is not worth it/will not pay out.
Yet, any accident you do not file a claim for still hurts your insurance rates. Companies offering to forgive your first minor accident each calendar year are doing you a big favor, so long as you do not have any more accidents. That could save you anywhere from fifty to five hundred dollars a year, depending on the company, your policy coverage, and the age of the owner/driver of the vehicle.
Safe Driving Checks
A check from the insurance company to reward you for safe driving sounds like a great deal. However, if you are even six hours away from qualifying for that check, and you have an accident, guess what? No check, and your rates go up. Additionally, you should compare and contrast coverage and rates with other insurance companies that do not give you a safe driving check. You might be surprised to learn that, to cover those safe driving checks issued, you are paying higher rates and/or higher deductibles.
Loyalty Rewards
Loyalty rewards are nothing new where auto insurance is concerned. Many companies have been reducing monthly premiums for years when customers have stayed loyal to them. It is a decent enough reward, since either the deductible on your plan or the premiums are reduced. Most customers prefer to have the reduction in their deductibles, since deductibles tend to be high and insurance premiums drop the older you become.
Keep this information in mind and contact companies like McHugh Insurance for more information.
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