Three Types Of Lesser Known Car Insurance
Anybody that has car insurance likely knows about all the common forms of it, such as liability, comprehensive, and collision coverage. However, there are a few lesser-known types of insurance that you can likely purchase from your auto insurance provider. Here is what you need to know about these three types of insurance.
Uninsured Motorist Coverage
One thing that your insurance provider likely tells you is that you need enough liability insurance to cover an accident so that you are not responsible for paying the additional money out of your own pocket. This can lead you to believe that the same would apply in the opposite situation where you are involved in an accident that another person caused. Unfortunately, things do not always work out as planned when it comes to insurance and lawsuits.
Uninsured motorist coverage is going to guarantee that you can repair your car if the other person is uninsured. That is because a lawsuit is only worth it if you can collect the money from the guilty party, and that is not always the case when someone has no assets or income. Uninsured motorist coverage also protects you if you were involved in a hit-and-run, and you don't know who was responsible for causing the accident.
Gap insurance is only necessary when you have a loan or lease on a vehicle, and the remaining balance is potentially worth more than what the car is worth. Gap insurance fills that gap between your loan amount and the car's actual cash value. Since a new car can lose as much as 19% of its value in its first year, you'll get the most out of gap insurance during that time when you are paying a lot of interest each month.
Rental Reimbursement Coverage
When the time finally comes when you do need to have your car repaired due to an accident, you'll likely be making a claim with your insurance provider so that you do not have to pay it out of your own pocket and save some money. However, are you really saving money if you need to pay for a rental car while your primary car is being repaired? This is where rental reimbursement coverage can help. You won't have to pay for those rental costs yourself, and your insurance provider will pick up the bill until your car is repaired.
Speak to local auto insurance agents to learn more.