Posted on: 3 November 2020
If you have a new car, you will want to make sure that you have a comprehensive insurance policy to protect your vehicle. In addition to carrying collision and comprehensive insurance, you will want to consider a few additional add-ons to your insurance policy.
Whenever you are carrying a loan on your vehicle, you should get gap insurance coverage. Gap insurance coverage will cover the difference between your car's actual cash value and what you owe on your vehicle, in the case that your vehicle is totaled.
For example, you may still have a car loan balance to pay off $7,000, but your vehicle's actual cash value is $5,000. Without gap insurance, you would still owe your loan provider $2,000 on a totaled car. With gap insurance, your insurance company will pay off the remaining $2,000-dollar difference, allowing you to pay off the loan and more easily get a loan for a new vehicle.
Some insurance companies allow you to sign-up for a vanishing deductible program. The longer you go without a claim with this program, the smaller your deductible gets, without raising your insurance rates. After so many years, you can enjoy a zero deductible without having to pay for having no deductible.
For example, your deductible could start at $1,000. After a set number of years, your deductible could be reduced to zero if you have not had any accidents.
If you don't already belong to a roadside assistance program, it is worth paying for one with your insurance company. Calling your roadside assistance doesn't count as filing a claim with your insurance company. It is a separate service and benefit offered by your insurance company. The great thing about most roadside assistance companies is that you can use your policy if you need it or use it if you are with someone else who needs it. For example, if you are with a friend who gets a flat tire, you can use your roadside assistance policy to get someone out to change the flat. This is an affordable service worth paying for.
If you get into an accident with someone, the accident is their fault, and they don't have insurance, you are kind of stuck. You will have to pay to fix your car out of your own pocket, and you may have to pay medical fees as well.
However, if you have uninsured motorist coverage, and you are in an accident with someone else who doesn't have insurance, your insurance will step in and cover all the costs associated with your accident. This coverage is low cost and helpful to have, as you don't control who drives around you and if they are carrying insurance.
Sit down and talk with your car insurance agent to see what add-ons they recommend for your new vehicle. It is smart to carry gap coverage, vanishing deductible, roadside assistance, and uninsured motorist coverage when driving a new and valuable vehicle.Share