Other Types Of Car Insurance

Let's discuss what other types of auto coverages are available.

Other car insurance types:

"You can choose from a variety of extra car insurance types to add to your policy. Most of these “extras” don’t cost much to add, but you may need to buy collision and comprehensive insurance to be eligible to buy other coverage types.

• Rental reimbursement covers a rental car while your car is in the shop for a repair covered under an insurance claim.

• Roadside Assistance gets you help if you break down and need a battery jump or towing service, but it may be cheaper from a local towing company or auto repair shop.

• New car-replacement insurance works a lot like gap insurance, which pays the value of a new car if yours is totaled in an accident.

• Full glass coverage pays to repair or replace chipped or broken window glass.

• Ride-Share insurance covers you when you’re driving for a ride-share service such as Uber or Lyft. Most rideshare companies only cover you when you have a passenger or are heading to pick one up; rideshare insurance provides coverage for the time when you’re waiting between fares.

• Mechanical breakdown coverage pays for repairs or replacement parts if your vehicle breaks down even if there is not an accident or external cause of damage.

• Custom parts and equipment value coverage will repair or replace modifications to your vehicle, like a new stereo system or those sweet, sweet spinner rims.

• Classic car covers repairs on classic or antique cars. It will also insure your vehicle for its full appreciated value.

• Business or commercial auto insurance covers you when you’re using your vehicle for commercial or small-business purposes."

What other types of auto insurance coverage are typical?

"While most basic, legally mandated auto insurance covers the damage your car causes, it does notcover damage to your own car. To cover your own car, you should consider these optional coverages:

• Collision reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object—e.g., a tree or guardrail—when you’re at fault. While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from rolling your car.

• Comprehensive provides coverage against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other hazards—even getting hit by an asteroid!

• Glass Coverage provides coverage from windshield damage, which is common. Some auto policies include no-deductible glass coverage, which also includes side windows, rear windows and glass sunroofs. Or you can buy supplemental glass coverage."

What is gap insurance and do I need it?

"Collision and comprehensive only cover the market value of your car, not what you paid for it—and new cars depreciate quickly. If your car is totaled or stolen, there may be a “gap” between what you owe on the vehicle and your insurance coverage. To cover this, you may want to look into purchasing gap insurance to pay the difference. Note that for leased vehicles, gap coverage is usually rolled into your lease payments."

How much do I need?

"Choosing the appropriate level of auto Insurance coverage depends on a number of factors, including assets you must protect (liability coverage), value of your vehicle (collision and comprehensive), the amount of money you can afford to pay out-of-pocket (deductibles), and your tolerance for risk.

Do I need insurance if I’m not driving my car?

"If you own a car but don’t drive it, it may still be a good idea to purchase or keep your existing car insurance policy.

Most states have laws that require drivers to insure any vehicle that’s registered with the state. Failure to do so can result in fines and other penalties. Another thing to consider is whether or not you finance your vehicle. It’s likely your lender will require you to carry full coverage - usually liability insurance, comprehensive coverage, and collision coverage - until the balance of your loan is paid in full.

Even if there is no legal reason for you to keep your policy, there are benefits for doing so. Many insurers see a lapse in insurance coverage as a risk. That means you may pay more for coverage when it’s time to hit the road again. And, if your car is stolen, vandalized, or otherwise damaged while it’s parked, an insurance policy may protect you from the financial fallout.

If you’re not going to be driving, it’s a good idea to contact your insurance agent to see what options you have. They may be able to help you change your policy and lower your premiums until you’re behind the wheel again."