Auto Insurance Coverage You Should Have
There are many different types of auto insurance coverage offered by auto insurance companies. Some of these coverage types like bodily injury and property damage liability are required by law. Other types of coverage are required by finance companies when you have a loan on your car such as comprehensive and collision coverage. However, there are a few important types of coverage that these entities fail to require that most automobile owners should have.
Uninsured and Underinsured Motorist Coverage
While you may be a responsible driver who keeps adequate liability insurance, not every one is this responsible. By buying uninsured and underinsured motorist coverage you are able to protect yourself financially against drivers who do not keep liability coverage, or who only have a small amount.
Unfortunately, in many states the legally required amount of liability insurance is low. Therefore, if a person only buys what is required, he or she will likely not have enough coverage to pay for your property damage or injuries if that person is at fault in an accident with you. Protect yourself with uninsured and underinsured motorist coverage.
Lease or Loan Gap Coverage
If you buy or lease a new or newer used car, chances are the salesperson or finance manager will offer you lease or loan gap coverage. This coverage will pay the difference between what your insurance company pays out to the finance company (your car’s current value) and the amount still owed on your loan or lease if your car is ever totaled.
I wouldn’t necessarily recommend buying gap coverage from the dealership because it is usually much more expensive than buying gap coverage from your insurance company. However, gap coverage is a type of insurance that anyone who has the potential to exceed the value of his or her car should have. Lease or loan gap coverage can be bought for less than 20 dollars a year usually.
Towing and Rental Reimbursement Coverage
Towing coverage is overlooked by many insured simply because many do not realize how inexpensive it is. If you do not have AAA or towing coverage with your warranty it can be worth the less than 20 dollars a year it will likely cost you with your insurance company.
Rental car reimbursement, while not always necessary can be helpful if you don’t have an extra car sitting around. Rental car coverage can be purchased in various increments (usually starting at 20 dollars a day) and is less expensive than you may realize.
