With every Auto Insurance policy, you have many different optional coverages to choose from. Most Insurance Companies offer Medical Payments, Rental, Towing, Customizations, Gap, and many others. Some of these optional coverages may make sense for you to have, and quite frankly some may not. What is important is that you know they exist, and you can make informed decisions when purchasing Auto Insurance. Please beware when you are getting quotes, most carriers will automatically include some of these coverages in your quote. Make sure you are getting a detailed quote to avoid having coverages included that you don’t need.
Available Auto Insurance Optional Coverages
Rental Car Coverage
You will be provided a rental car in the event that your insured car is involved in an accident. Most Insurance Companies limit how much they will pay per day for a rental car. I recommend that you have at least a $60 per day, or $900 total limit.
Towing Coverage
Now most commonly referred to as “Roadside Assistance”, provides coverage if your car breaks down, runs out of gas, etc. Usually, you will have a limit of $50 or $75 per incident. If you obtain this coverage, make sure you know what your limit is.
Medical Payments
Coverage will be provided to you in the event of injury from an auto accident, or “auto related” injury. This coverage can be a little vague, and you should discuss with your current agent or our experienced professionals at Homestead Insurance Group. Most companies will offer limits of $1,000-$5,000 per incident. Some insurance clients exclude this coverage if they have low Health Insurance deductibles.
Customizations
Most are not aware of this very important coverage option. Most insurance companies can offer coverage for “extras” that you outfitted your car with. Some examples may include: stereos, custom wheels, advertising wraps, etc. If you do not purchase customization coverage, you will not be paid for losses to these items resulting from an accident. If you have these customizations you need to discuss adding coverage with your agent.
Gap/New Car Replacement
These are some new options that are now being offered by Insurance Companies. Gap traditionally will pay any remaining balance owed on a vehicle payoff resulting in the car being totaled in an accident. Some Gap policies will even provide money for a down payment towards your next purchase as well. New Car Replacement, typically will allow coverage for you to purchase a brand new model of your car in the event of a total loss. We recommend that if you purchase a brand new car these options are selected. The cost is very minimal but provides a lot of additional coverage. Furthermore, do not purchase this coverage from your car dealer. It is much more expensive and does not provide the flexibility if purchased through an Insurance Company. Just remember when you buy your next car, tell them to exclude the GAP Coverage!
What Optional Coverages Should You Have?
Again this will be based on a personal discovery through what we call our Consultative Process. Everyone is different, and some coverages will resonate more than others. Just remember it is your choice, and we will give you all the information needed to make your own decisions.