The worst time to find out what your auto insurance covers and what it doesn’t is after an accident, vandalism or theft. It’s too late, at that point. In addition to carefully reading your auto insurance policy documents, learn more about what types of coverage are available so that you can ask your automobile insurance agent to make additions to your existing policy. Or, you might just elect to shop for a new policy if your current insurance company has limited offerings. Here are a few types of auto insurance coverage that you might or might not know about and/or need:
Accident Forgiveness Coverage – Some insurance companies now provide “forgiveness” for a certain number of accidents during a specific time period, meaning they will not raise your premiums come renewal time. When shopping for car insurance quotes, inquire about this type of coverage, especially if you have had multiple accidents during your time behind the wheel. It would be worth the additional expense.
Personal Umbrella Coverage – Most insurance companies offer this type of coverage, which supplements your required liability auto insurance. Ask your automobile insurance agent how much it would cost to add this to your existing policy, and if it isn’t offered, you might want to start shopping for additional car insurance quotes.
Windshield Repair Coverage – Replacing a windshield can be costly, and in some states a police officer can issue a ticket if the cracks extend into the driver’s field of vision. Sooner or later, you will have to get a new windshield – especially if you commute to work on a highway – so adding this auto insurance coverage makes sense.
Declining Deductibles Coverage – With this type of auto insurance coverage, a company will reduce your deductible year over year under certain circumstances. This helps safe drivers save money on their auto insurance over time.
Emergency Roadside Assistance Coverage – Many auto insurance companies now compete with the likes of AAA in this area. This type of coverage usually covers jump starts, locksmith services and towing to the nearest repair shop. Ask your automobile insurance agent if your current policy covers this, and if not, consider adding it.
Car Rental Reimbursement Coverage – If you do get into an accident, does your current auto insurance provide you with a rental car while your car is being fixed? This type of coverage typically pays for itself the first time you have to use it. Many auto insurance companies also allow for direct billing from the car rental agency, meaning you are never out of pocket rental costs.
Extended Customized Equipment Coverage – While customized equipment auto insurance covers optional equipment, such as entertainment players or navigation systems if permanently installed where a manufacturer would normally install such equipment, this extended auto insurance covers those items not permanently installed in your car. For example, tapes, disc, external audio equipment and other items are covered. Be sure to inquire about this coverage when obtaining car insurance quotes.