There are plenty of commercials and ads bombarding us on a daily basis with how we can best spend out money. In the insurance world, the current trend is to focus on policy extras that bring added-value to your policy. But, what exactly are they?

Many companies offer a variety of extras, including: vanishing deductibles, accident forgiveness, new car replacement, and personal property replacement costs. The marketing reps behind the ads make it sound like each company has something unique, and that it is a way to get something for nothing. While each company does have a different way to offer some of these extras, most have some version of it.

As for getting this “extra” that others won’t do…well, if you can pause your TV and look at the fine print, you will see the disclaimer that additional premium may (will) be charged for the added coverage. That’s not to say that the extra premium dollars are not worth it. Just know that your current company may offer a similar program that you could add to your current policy.

So what? Well, review your policy to determine if you have any policy extras. If you do, and have questions, contact your agent to have them explained. If there is something you would like on your policy, contact your agent to see what your options are.

These added-value extras do actually add value to your policy, and could lead to some cost savings in the future. But know that there will be some additional premium to include these on the policy. As the saying goes: “You get what you pay for.” In insurance, sometimes a lower payment isn’t always the best option.

 

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.