In each state, drivers are legally obliged to carry minimum liability coverage before getting behind the wheel. Since the automobile insurance laws differ from one state to another, your insurance agent is there to ensure you comply with the law.
And your insurance agent will offer you a variety of different add-on coverages to better your car insurance coverage that by the way, is optional.
Here are some add-ons that you should consider when buying auto insurance.
Gap insurance protects you when your car loan balance is greater than the actual value of your car, or what the insurance company will pay. Your insurer will cover the amount difference in case your car is in an accident and is totaled. While gap insurance is not something everybody needs, it is best for brand new vehicles under a lease or financing.
The way car insurance companies determine what your car is worth at the time of the accident varies between companies and states.
When you finance or lease your car, you more than likely will owe more on the loan or lease than what the car is worth. If you don’t have gap insurance, it can cost you money out-of-pocket if you get into an auto accident.
Breaking down or getting stuck in the middle of nowhere during wee hours is the worst.
But, if you have Roadside assistance, they will come to your rescue. They have mechanics that are equipped to change tires, fill up an empty gas tank, and inspect mechanical problems.
And, if they are unable to fix the vehicle where it is broken down, Roadside assistance will have the vehicle towed to the nearest repair shop.
Roadside assistance is an essential service to have for having peace of mind when often venturing out on the road alone or with children.
The vanishing deductible is to save on your auto insurance deductible if you get into an accident. This is one auto insurance add-on that’s becoming more common in premium car insurance policies.
With this add-on in place, your deductible is reduced annually by $50 to $100. Deductibles will continue to drop as long as you continue to have no accidents, moving violations, or points.
Personal injury protection
PIP has a wide range of covered expenses in case an accident happens, depending on the policy. It primarily pays for medical expenses of the insured driver, including family, as well as other passengers involved in the crash. PIP may also pay for funeral or loss of income.
But, in no-fault insurance states, PIP is required as there is no recovery of medical expenses from the other driver’s insurance company.