MetLife Offers Six Savvy Tips for the New Car Shopper

WARWICK, RI - February 15, 2008: Although how Presidents' Day became a time to celebrate America's infatuation with the automobile has never been explained, savvy consumers know that the third Monday in February is an excellent time to secure great deals on this year's models. To get the most for their money, many discerning car buyers throughout Massachusetts will comparison shop and review new car guides before stepping on to the lot. However, to properly protect their investments, consumers should also take a few additional minutes to make certain that their auto insurance is top of the line.

"There's a lot to consider, to ensure that you don't have unanticipated gaps in your auto coverage,” said John Barish, state management director for Massachusetts at MetLife Auto & Home^�. “In fact, consumers may be stunned to find out how much a new car depreciates during the first year, from the moment that you drive off the dealer's lot. That means that a person can pay $20,000 for a vehicle and receive thousands less than that if the vehicle were ‘totaled.’ In many instances, consumers could find themselves owing more on a vehicle than it is actually worth.”

Now that managed competition offers Massachusetts consumers greater choice in auto insurance coverage, before purchasing a new vehicle, consumers should ask themselves the following questions:

What does my auto coverage actually cover? Determine in advance the level of protection actually afforded under the terms of the policy. For example, if your new car were damaged beyond repair, would your auto insurer replace the vehicle with a new one, or take a deduction for depreciation?
Is image everything? Certain cars look great and catch the eye, but you may end up paying more for the flair. Cars that are expensive to repair or have historically higher theft rates carry higher insurance costs. Specialty vehicles and sports cars typically cost more to insure.
Can I use the accessories to my advantage? If your new vehicle comes equipped with such things as anti-theft/alarm devices or airbags, you may qualify for discounts.
Are there other discounts that I qualify for? Insurers offer discounts for a number of factors: driving record, certain driver training courses, low annual mileage, or the fact that a household has more than one vehicle insured with the same company.
How safe is the vehicle? Besides ensuring greater peace of mind, vehicles that are considered “crashworthy” usually cost less to insure. Before making your final decision, pay a visit to www.highwaysafety.org to rate your prospective purchase.
Is there a way to protect against depreciation? Most insurers take depreciation into account, and not only for new cars that are totaled. In a partial loss, depreciation is also considered for parts that are subject to wear and tear, such as batteries, tires, shocks, and electrical parts. However, it pays to shop around, because there are insurance companies that provide replacement cost coverage for these items.

To learn more, MetLife Auto & Home offers a free brochure, “Shopping for a Safer Car,” which is co-branded with the Insurance Institute for Highway Safety and provides detailed information that will help consumers be “up to speed” when it comes to considering safety as part of the purchasing decision. The brochure can be obtained by calling 1-800-638-5433 (1-800-MET-LIFE).