Why are there so many auto insurance policy options today and can they really save me money?

By | February 11, 2014

By our latest count, there are around twenty insurance companies actively advertising auto insurance today.  The Warren Buffet / GEICO-led hyper competition to gain auto insurance market share has pushed companies to conjure up all sorts of premium discounts and gimmicks, some good and some not so good.  Discounts range from the older multi-policy, multi-car and claim free premium discount to a variety of new company and agency customer loyalty discounts, as well as a new car discount.

Options run from new versions of the disappearing deductible to Progressive’s potentially dangerous gimmick,  the Name Your Own Price Tool.  Another relatively new purchase option, automobile accident forgiveness, won’t necessarily save you money in the long run.  Somewhere in the policy rating is a mathematical calculation and charge for the privilege of being forgiven.  Ultimately, irrespective of the option, your net premium savings will depend heavily on your personal safe driving record.

So, can these options like these really save you money?  The answer is:  not all of them can, but if you choose wisely you can save significant dollars.