understanding your insurance policy

understanding your insurance policy

3 Car Insurance Add-Ons That Everyone Should Consider

by Tuĝba Van Den Heijkant

In an effort to save you money, your auto insurance provider has provided you with the option to customize your coverage, which allows you to only purchase the coverage you need and can afford. However, if your first consideration is the cost, you might be overlooking insurance add-ons that could save you thousands in the event of an accident. The next time you talk to your insurance provider, ask about these three add-ons that everyone should consider:

Gap Insurance

Otherwise known as Gap protection, Gap insurance will cover the difference between what your car is worth and what you own on it, if the car is totaled. For example, let's say that you still owe $20,000 on your car and after a horrible car accident, your car is deemed a total loss. Unfortunately, the value of the car is only $15,000.

Unfortunately, if your car is deemed a complete loss by the insurance company, you will still owe $5,000 on your automobile loan. If you have Gap insurance, your insurance provider will cover this "gap." In most cases, Gap insurance is very inexpensive.

According to Nolo, Gap insurance is a crucial add-on to consider if you took out a loan with a longer term, such as 60 or 72 months, if you put little or no money down on your car or if you bought a car that depreciates quickly.

For parents with teenagers, Gap insurance is also a must.

PIP Insurance

If you live in Michigan, Minnesota, New Jersey or any of the other 13 states that, according to Cover Hound, requires PIP insurance, you are already very aware of this coverage. Personal insurance protection, or PIP, insurance is an add-on that helps pay for lost wages, medical expenses and the other costs that often come after an accident.

PIP insurance is often referred to as "no fault" insurance because in the eyes of the insurance company, it doesn't matter who is to blame for an accident. If you've ever been involved in an accident in the past, you know how long it can take for the insurance companies and the court system to determine fault.

Having PIP insurance coverage will help cut out all this unnecessary paperwork, which will help you get the money you need to pay for your medical bills, lost wages and the other expenses that occur after suffering a car accident.

Roadside Assistance

If you've ever purchased a new car, one of the many perks of having a warranty is the free roadside assistance that is provided for the first few thousand miles. However, what happens once the warranty has expired and you're stuck on the side of a busy highway at night with a busted fan belt?

Before signing up for this add-on, which is often very inexpensive, ask what is provided. In most cases, your auto insurance will provide you with a number of perks that will come in handy if and when you are stranded.

From having your car towed to the nearest mechanic, if it is in need of a serious repair, to simply having a towing company come out to change a tire or fill your gas tank, ask your insurance provider about the many advantages of adding roadside assistance to your policy.

From providing you with thousands of dollars to cover the remaining cost of your vehicle to giving you the peace of mind that comes with having your bills covered after an accident, there are several kinds of insurance coverage add-ons to consider. If you're ready to get this extra coverage, don't hesitate to contact your insurance provider right away!


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understanding your insurance policy

You keep a copy of your insurance policy in your file drawer, but do you know how to read and understand the policy? Having an insurance policy will protect you from losses, but it won't protect you from all losses. To get a better understanding of what your policy will and will not cover, read through this blog. You will learn about all different types of insurance policies and learn the terminology used in the documents that you have read. Hopefully, by the time you have read through the content here, you will know exactly where your insurance policies are lacking so you can make changes.