Praying for Better Insurance

Would you trust your insurance policy to a higher power? Meet the GuideOne Insurance Company, self-described as "America's leading insurer of churches, churchgoers, and faith-based institutions." Today, GuideOne insures nearly 45,000 churches; when founded in the mid-1940s, it originally aimed to offer lower car insurance prices to non-drinkers.

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The company has now begun offering "FaithGuard" car insurance policies aimed at churchgoers. Among other benefits, the policy waives your deductible you're in an accident on your way to or from a faith-based activity. (A wide variety of religions qualify.) If you lose some income because of an accident, the company will make tithing payments for you to your church, along with car loan and mortgage payments. And the company will also make a $1,000 memorial contribution to your religious institution if you die in an accident on a faith-related trip.

Now, I understand that small insurance companies have to find niche offerings to compete with larger rivals such as Allstate (NYSE: ALL), Progressive (NYSE: PGR), Travelers (NYSE: TRV), and the GEICO unit of Berkshire Hathaway (NYSE: BRK-A). But reading about FaithGuard, I began wondering just how broad the definition of "faith-based events" would be. For example, if I have strong faith in the U.S. stock market's long-term ability to generate wealth, would an accident on my way to an investment club meeting qualify?

Hallelujah?
If you attend faith-based events, should you sign up for this insurance? Well, do some math first. If you go to church just a few times per year, the policy isn't likely to offer compelling benefits. But if you go several times per week, and your church isn't around the corner, this kind of policy could end up saving you significant dollars, starting with a deductible of $500 or more. Still, be sure to consider lots of factors before you sign up. Compare rates and protection levels with those of other insurers, for starters.

Keep learning
Learn more about the sometimes baffling (but still important!) topic of insurance in our Insurance Center. Some kinds of often-overlooked policies, such as disability or long-term care insurance, can be vital for many people. Take a little time to learn more -- if calamity strikes, you may be very happy you did.

© 2007 Universal Press Syndicate.