Things to Look for in an Iowa Auto Insurance Policy

The auto insurance business has become more and more competitive over the last few years. Because of this, many Iowa auto insurance companies are beginning to find new ways to offer added value to their auto insurance policies. In the last few years there have been some new and inventive ways to give more to you, the customer.

With these changes, there are now some things to look for in your Iowa auto insurance policy to help you get more comprehensive coverage and to even save you a little money.

Iowa Auto Insurance Policy Accident Forgiveness

Accident forgiveness is a relatively new concept in Iowa auto insurance. The general idea is that if you have an accident, even if it is your own fault, your Iowa auto insurance company will not penalize you for the accident.

There are, of course, restrictions on this offer. The most common being that you have to be a customer of the particular Iowa auto insurance company for 5 years or whatever they deem appropriate. Also, in most cases, the accident forgiveness is only for your first accident.

There are now more companies willing to offer this to their customers and each will have their own guidelines and qualifications. You should check the fine print, or have your Iowa auto insurance agent explain the details of this offer.

Iowa Auto Insurance New Car Replacement

This is another new feature that is supposed to replace an old way of doing business. You have probably heard by now that once you drive a new car off the lot, it immediately loses considerable value. Vehicles depreciate rapidly and the old way of doing business was for the Iowa auto insurance company to write you a check for the depreciated value of your car if it is totaled.

With new car replacement, your Iowa auto insurance company will get you an new car of the same model. Again, there are restrictions that will depend upon the specific Iowa auto insurance company, but, generally, if the car is within three model years of being considered a new vehicle, it will be replaced by a new car if it is totaled.

Iowa Auto Insurance Safe Driver Kickback

This addition to your Iowa auto insurance policy was pioneered by Allstate and is a way to give back money to safe drivers. The general principle is that every 6 months you go without an accident; you then become eligible to receive cash back of around 5 percent of your 6 month premium.

This is the Allstate policy, so the details of other Iowa auto insurance companies may differ and there may be other qualifications. Most companies that do offer this bonus will offer it on top of any other Iowa auto insurance discounts that you are already receiving. 

Iowa Auto Insurance Policy Deductible Reductions

This is another way for Iowa auto insurance companies to reward good drivers. It was also pioneered by Allstate and the underlying principle is that good drivers deserve a break on their car insurance costs. If you go without an accident for a year, you will get a specific amount of money taken off your collision deductible.

Generally, this is only on your collision deductible. Some companies will offer that each year you go without an accident, you get an additional amount of money off your deductible: $100 per year is pretty standard. There is a limit that can be taken off your deductible that is usually $500. So, if you have a $500 collision deductible and you go without an accident for 5 years with $100 taken off each year, you will no longer have to pay a deductible. 

Summary of Iowa Auto Insurance

Good drivers save auto insurance companies money, so competition has forced Iowa auto insurance companies to find ways to give the money back to safe driving customers. Not all companies offer all of these ways to improve your car insurance coverage, but you should be able to find a reputable Iowa auto insurance company that can offer a variety of these new concepts to give you more bang for your buck.