Understanding Insurance Policies

When you purchase auto insurance, you want to make sure that you are carrying at least the minimum amount of insurance required by your state. If you want to get assistance taking care of your own vehicle in the event of an accident, you should also purchase comprehensive insurance as well.

Collision and comprehensive coverage are not your only options when it comes to your personal auto insurance policy. There are lots of additional types of coverage you should consider adding to your insurance policy.

Extra #1: Uninsured Motorist Coverage

If you get into an accident with an uninsured or an underinsured motorist, you are going to be in trouble. When you get into an accident with someone who doesn't have insurance, and they caused the accident, you may not get the financial compensation you deserve for your injuries or for the damage to your vehicle.

That is why it is smart to add underinsured or uninsured motorist coverage to your policy. This coverage will ensure that you get money back equal to the bodily damage you have on your own policy if you get into an accident, and damage to your vehicle will be covered as well.

This is an especially important policy to carry if you live in an area with a high percentage of uninsured drivers.

Extra #2: Rental Insurance Coverage

Rental insurance coverage, often also called substitute transportation coverage, will cover your bill for a rental car while your vehicle is getting repaired, or while you look for a new one after an accident. With this type of coverage, most insurance companies will cover you for a set number of days, often around four weeks, for a certain level or type of rental vehicle.

If you want to rent a vehicle above the class of rental that the insurance company is willing to pay for, you just have to pay the difference between the class the rental company will pay for and what you want. This cover can save you from paying hundreds of dollars for a rental vehicle after an accident.

Extra #3: Lease Gap Coverage

As long as you hold a loan on your vehicle, you are going to want to carry a lease gap coverage, also known as loan gap coverage with some insurance agencies.

That coverage will pay the "gap" between the value of your car and what you owe your lender for the car if you get into an accident, thus filling the "gap" between the value of your car and your loan. Lease gap coverage will ensure you are not stuck with a car loan after your vehicle is totaled in an accident.

The best add-ons to your insurance policy will vary based on your personal situation. Discuss the various auto insurance add-ons you can add to your policy with your insurance agent in order to determine the ones that will provide you with the most robust protection for your needs.

For more information about your personal auto insurance options, contact an auto insurance provider today.