Does Your New Car Have the Coverage It Needs?

WARWICK, R.I. -- As auto manufacturers roll out their 2005 new car lines, consumers can find great deals. To get the best value for their money, smart shoppers take the time to comparison shop and review new car guides. However, too few take enough time to make certain that their auto insurance properly protects their sizable investments.

"There's a lot to consider to ensure that you don't have unanticipated gaps in your auto coverage," said Cathy Rein, president and CEO of MetLife Auto & Home. "In fact, consumers may be stunned to find out that a new car depreciates up to 30 percent during the first year. That means that a person could pay $20,000 for a vehicle, but only receive $14,000 if it is 'totaled.' In many instances, consumers find themselves owing more on a vehicle than it is actually worth. There are insurers out there, however, that do not take a deduction for depreciation during the first twelve months."

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 is damaged beyond repair, will your auto insurer replace the vehicle with a new one, or take that 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 anti-lock brakes, you may qualify for discounts.

--Are there other discounts that I qualify for? Insurers offer discounts for a number of factors: driving record, certain safe driving courses, the number of drivers using the vehicle, low annual mileage, and whether the vehicle is kept in a garage overnight or parked on the street.

--Can my good driving record work for me? In the event of a loss, certain insurance companies will reward customers for good driving habits, by offering a deductible reduction for each year of loss-free driving. Make sure to ask whether your company offers it.

--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.

To get a better feel for the safety level of a prospective purchase, MetLife Auto & Home offers a free brochure called "Shopping for a Safer Car." This informative 20-page booklet outlines what safety factors should be considered, to reduce the risk of death or serious injury in the event of a crash. The brochure has been co-branded with the Insurance Institute for Highway Safety, and is available by calling 1-800-638-5433 (MET-LIFE).

MetLife Auto & Home, an affiliate of MetLife, Inc. (NYSE: MET), is one of the nation's leading personal lines property and casualty insurance companies with more than 2.7 million policies in force. For more information about MetLife Auto & Home, visit MetLife's web site at www.metlife.com.

MetLife Auto & Home is a brand of Metropolitan Property and Casualty Insurance Company and its Affiliates, Warwick, RI.