Many insurance companies allow you to buy standard coverage and then enhance it with add-ons or riders. Below are some add-ons to consider for your car insurance.
Roadside Assistance Coverage
Roadside assistance coverage can rescue you if you are stranded while driving. Consider the following scenarios:
- Your car breaks down during a road trip, and you have no idea where to get an auto mechanic.
- You unexpectedly run out of fuel, and the nearest gas station is miles away.
- Your car starts to overheat, and you cannot safely drive it back home.
You might wait for hours or even overnight for help to reach you if you don't have roadside assistance coverage. You might have to rely on assistance from strangers, which might not come fast if you are in the middle of nowhere. With roadside assistance coverage, the insurance company will ensure that you get help as soon as possible.
Rental Reimbursement Coverage
You might be without a car if you have one car and an accident damages it. The situation is inconvenient, especially if the repair is complex and takes time. Say you need a transmission overhaul or have an exotic car with locally unavailable parts.
Many people resort to rental cars in such situations. Unfortunately, car rental can cost a significant amount, depending on your local car rental rates, rental duration, and car make and model. However, you don't have to worry about all that if you have rental reimbursement coverage. Your insurance company will reimburse you for the rental costs if you have the coverage.
If you lose your car in an accident or theft, most insurance policies will compensate you for the car's market value just before the crash. Unfortunately, that value might not be enough to buy another car since cars depreciate with age.
The compensation might not even cover what you owe on the car, depending on its age, make, and model. That means you won't have a car but will still owe the financier some money. You only get full compensation if you have gap insurance.
Consider a car you buy on loan for $40,000 that an accident totals while your outstanding loan is $30,000. If the car depreciates to $25,000, the insurance company would pay $25,000 to the financier, and you will still owe $5,000. Gap insurance will cover the difference between the insurance compensation and the outstanding loan amount.
Contact an auto insurance agent for more information.