Auto insurance options can be confusing and overwhelming, but our agency is here to help! Like most other policy types, auto insurance is a package of coverage that can help to protect you if you cause damage or injury to others. Here are the types of auto insurance coverage that are generally found in most policies:
- Liability: Covers the injuries and damages of others when you are at fault. This coverage is also usually required by law.
- Comprehensive: Covers damages to your vehicle caused by things other than collision. This includes things like wind, hail, theft, animals, vandalism, and more!
- Collision: Pays to fix or replace your vehicle when you are at fault. This covers collisions with other vehicles, animals, and objects.
- Uninsured Motorists: Covers your injuries and damages when cause by an uninsured or underinsured driver. This also covers your passengers!
- Medical Payments: Assists with medical care costs for you and your passengers, regardless of who’s at fault.
However, there are various types of optional coverage that you can also add to your policy! These policy add-ons can help you to customize your auto insurance!
- Towing & Roadside: You’ll get 24/7 roadside assistance for towing, tire changing, locksmith services, and jumpstarts!
- Rental Car Reimbursement: Covers a rental car for up to 30 days while yours undergoes repairs.
- Rideshare: Helps to protect Uber and Lyft drivers during periods not covered by company or personal insurance.
- Loss of Use: Provides a flat sum for transportation that can be used for public transit, rentals, taxis or rideshare services.
- Guaranteed Value: Pays an agreed-upon value if your car becomes a total loss.
- Customized Equipment: Covers repair or replacement of aftermarket equipment. However, your vehicle must also have comprehensive and collision coverage to qualify for this optional coverage.
- Personal Umbrella: Provides additional liability coverage on top of your auto and home policies. This coverage can help to protect your assets in the event of a lawsuit.
- and MORE!
Are you financing your vehicle? Then you may want to consider gap insurance coverage! The depreciation of a car is steep as soon as you drive it off the lot, then levels off over time. If take out a loan, you could owe a lot more than the vehicle is worth for several years! This can be an issue if your vehicle is totaled while you are still “upside-down” on the loan.
The coverage your auto policy provides is based on the current worth of your car, not your loan amount, how much you initially paid, or what a new version is worth. In the event of a total loss, you’ll only get what the car is actually worth, but you’ll still owe the balance of your loan amount. So, if you owe more than the car is worth, the difference comes out of your pocket.