Auto insurance companies offer many types of add-ons that
you can choose to pay extra for as part of your coverage plan. Although some
add-ons are unnecessary, others can be worth the additional cost if you think
you might ever need them down the road. Here are five auto insurance add-ons
that may keep you afloat all through floods, so you can focus on more important
things in life than worrying about how to get your car fixed or replaced after
an accident occurs.
Auto insurance can cover most of the costs when your car
is damaged in an accident, but it may not cover all of the damage if you were
found to be at fault. Here are five auto insurance add-ons that may keep you
afloat all through floods, regardless of who was at fault.
1) Buy Additional Liability Coverage
You may want to purchase additional liability coverage,
which is used to protect you if you hit someone with your car. The average cost
of this add-on ranges from $100-$600 per year. This coverage will help pay for
the other person's medical bills and property damage if you are found liable
for the accident. For example, a teenage driver who crashes into another
vehicle would have a smaller financial responsibility with auto insurance than
if he did not have any. Parents may consider purchasing this type of coverage
for their teenage drivers or cars with the most costly repairs.
Additionally, some states require drivers to purchase this
as an option in order to maintain a car license and insurance policy. Make sure
that you have enough coverage: Consider adding collision and comprehensive
coverage to ensure that your car is adequately protected. Collision insurance
covers damages caused by collisions with another object while comprehensive pays
for damages from incidents such as hail storms, vandalism, floods, fire or
theft. While it can be more expensive upfront, collision protection can help
get back on the road faster after an accident because it offers a guarantee
that the owner can afford full value for his/her vehicle even after a crash has
occurred. Comprehensive insurance helps keep people insured during times when
weather conditions could harm vehicles like rainstorms or hurricanes.
2) Purchase Underinsured Motorist Protection
Purchasing an underinsured motorist protection (UIM) will
help with liability in the event of a car accident. If you have no uninsured or
underinsured motorist coverage and are involved in an accident where one of the
drivers does not have enough insurance to cover your expenses, then you may be
required to go after their assets in order to reimburse yourself for damages.
This is a very serious concern and UIM coverage is the best way to protect
yourself against this situation. Purchasing UIM coverage will help you avoid
putting your family's finances at risk by ensuring that if an accident happens
and another driver has insufficient or no insurance, you will be able to afford
any necessary medical treatments and property damage repairs.
3) Buy Collision and Comprehensive on New Vehicles
Purchasing collision and comprehensive on new vehicles not
only ensures you will be covered if your car sustains an accident or
significant damage, but also may lower your monthly payments. Collision
coverage is included in most insurance plans these days, but if not, it can
easily be added at the time of purchase. Comprehensive insurance covers your
vehicle against unexpected events like theft, weather damage and vandalism that
are not caused by accidents.
However, while this is definitely a benefit to purchase with
your auto insurance package, it doesn't mean you should take out additional
comprehensive insurance with separate companies as well. Some policies provide
this as a loaded premium without asking for an additional amount - so check
before buying anything more than what's required from your current provider.
4) Enroll in Rental Reimbursement
Enrolling in Rental Reimbursement is a peace of mind worth
having. With this add-on, your auto insurance provider will reimburse you for a
rental car while your vehicle is being repaired or while it sits in storage if
it was damaged by an incident not covered by the policy. For example, if you
have collision coverage and need to fix your cracked windshield and dent that
occurred during a hail storm, but you're worried about going into debt because
of the high cost of repairs, then you would have this safety net to fall back
on. This could also be helpful for those who are waiting for their insurance
company to give them estimates for repair work that needs to be done on their
car following an accident with another driver. It's important to note that when
enrolling in this add-on, drivers should notify their insurer before getting a
new lease so they can approve the agreement first.
5) Obtain Roadside Assistance
Having Roadside Assistance on your policy may be a good idea
in case of emergencies that arise from the roadway. They are available 24 hours
a day, 365 days a year and will help you with any roadside problems such as
changing a tire, providing gas, or towing your vehicle. If your car is stolen,
for example, Roadside Assistance will reimburse you up to $50 for
transportation expenses up to 200 miles. There are two different kinds of
roadside assistance plans - basic or premier. Basic roadside assistance covers
just the basics but premier provides extra benefits such as protection against
flat tires and locksmith service if you lock yourself out of your car. Premier
also offers discounts on rental cars, international travel services and some
other automotive needs. Premium roadside assistance also includes discounts at
certain car washes nationwide. Consider Mobile Phone Protection: When it comes
to phone insurance there are a few different options to choose from including
Wireless Connection Protection which costs about 5 dollars per month and offers
reimbursement for monthly device access charges. It also includes up to 3
months of coverage for loss or theft of an activated device so long as the
owner reports it within 12 hours after noticing the loss or theft.
Auto insurance is one of the most important products in
your financial portfolio, and knowing how to choose the right policy for you
can make all the difference when disaster strikes. Floods are one of the most
common sources of damage that can sink even the most prepared households, but
certain auto insurance add-ons may help you keep your head above water if
flood-related disaster strikes near you. Here are five add-ons you should
consider when adding coverage to your auto insurance policy.
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