Supplemental Auto Insurance
There are many types of insurance available for vehicles today; standard insurance and supplemental auto insurance. Besides the basics, there are types of supplemental auto insurance that can be purchased to better protect your vehicle.
There is a type of supplemental auto insurance that can be purchased even if one does not own a car. It is called non-owned auto insurance, and is mostly obtained by people who rent cars often. This type of insurance can give a person coverage in a rental car, if they are in an accident that causes damage to someone else’s vehicle, to that car's passengers, or even to pedestrians in the street. When you rent a car, you will be asked if you want to purchase the additional insurance. If you already have collision and comprehension on your personal vehicle, than this typically will cover a rented vehicle. If you don’t, then you will need to purchase the company’s insurance.
But this can be costly, especially if you habitually rent cars from companies. Purchasing non-owned auto insurance can really save one money. There are other benefits to this insurance, as well. You can get underinsured and uninsured coverage for accidents occurring where the other driver has little to no insurance. It will also cover medical expenses incurred to any of yours or the other driver’s passengers. Non-owned insurance is a type of supplemental auto insurance that can be purchased from most major insurance companies. For those who rent vehicles often, it can be a wise investment.
There is a type of supplemental auto insurance that can be purchased that can cover a person who is in an accident with a driver that has little or no insurance. First, there is underinsured motorist bodily injury coverage. This will cover expenses that happen as a result of an accident, if the accident is caused by a driver that does not have adequate insurance or none at all. Examples of things that can be paid for are medical bills, prescriptions, and lost wages. Whatever the difference is between the auto coverage you have and any bodily injury coverage the other driver has is what you will be given.
Uninsured motorist bodily injury coverage covers a driver if they are in an accident with another person who has no insurance at all. This type of coverage is designed to pay expenses associated with any bodily injuries that occur. Examples of these are medical bills and lost wages. The amount of money a driver will receive can be up to the limit of the coverage purchased for this issue.
Having this extra supplemental auto insurance can be very beneficial to cover unexpected medical costs associated with a driver with little to no insurance coverage.
Another kind of supplemental auto insurance that is available for purchase is called underinsured motorist property damage coverage. This type of coverage is used for repairs and replacements to property, mainly the vehicle involved in an accident. This insurance covers an accident that is caused by another driver who does not have sufficient insurance coverage to cover the damage caused in an accident. The difference between both the other drivers insurance and your insurance is the amount that you will receive.
Another branch of this supplemental auto insurance is called uninsured motorist property damage coverage. Repairs to a vehicle are covered with this type of insurance if a driver is involved in an accident with you and has no insurance at all. This can also cover a replacement vehicle, if necessary. There will be limits set by your policy that will determine the amount you can receive for this claim.
Again, this is a great extra coverage to have on your insurance policy. You never know what type of accident you may end up in, and if the other person will have enough insurance to fix your vehicle. It is best to make sure you are covered all the way around, no matter what the situation requires.
A new type of supplemental auto insurance is called pet injury coverage. Many people drive around with their pets in the car, whether they are going to the park, the vet, a pet store, or simply for a ride. For a lot of people, pets are like their children. Some auto companies believe that they should be treated as part of the family. That’s why they offer pet injury coverage, an extra perk to having collision coverage on your vehicle. If your pet is injured in an accident, the insurance company will pay up to a certain amount for their vet bills and any medicine they may need.
The best part of this coverage is that is usually offered with collision coverage. There is no extra charge for having it; it is automatically added into your policy. Having pet insurance is like a health insurance program for your pet. The way that most plans work is that the owner initially pays the vet bill, and then the insurance company reimburses it. Each plan is different; some have deductibles, a maximum amount, and more variables. Most will not completely cover everything, so be sure to get all the facts before relying on this insurance. Pet insurance typically covers only dogs and cats riding in the vehicle, and is not available yet in all states. It can be obtained through some auto insurance companies, and also specialty businesses.
One type of supplemental auto insurance is called personal injury protection, otherwise known as PIP, or medical payment insurance. If a policy holder is involved in an accident, it can compensate them for many things. These include paying for medical and hospital expenses incurred and any child care expenses that may occur because of treatment caused by an accident, and also funeral expenses. The advantage of having PIP insurance is that the insurance company does not take into consideration whose fault the accident was. Claims can be made quickly on medical bills, and there are no lawsuits as to whose fault the accident was. This type of supplemental auto insurance can save both money and time.
Depending on the state you live in, PIP coverage can be either mandatory to have on your auto, or optional. Since medical costs are expensive, this insurance may be expensive, as well. It is recommended to budget the cost into your insurance so you know the price you may be paying. PIP coverage will cover any vehicles on one policy, although there may be a premium charge required to pay for each vehicle to the insurance company.
Check into any and all health care coverage that you have when starting an auto insurance policy. If you are covered for lost wages and medical bills, then you may not need to purchase PIP coverage on your car.
Gap insurance is one type of supplemental auto insurance that may be very beneficial to purchase. If a car owner runs into a situation where their car is stolen or totaled, but they still need to pay off the loan balance, having gap insurance can really help. A vehicle is worth a certain value, and gap insurance will pay off the difference in value of the car and what you still owe. Gap insurance is better this way than even what having comprehensive and collision can do.
Gap insurance is usually available for newer vehicles, so it may be hard to find a provider who will offer this type of supplemental auto insurance for an older vehicle. You could still purchase it; however, the price would just be higher. Your current insurance company may already have gap insurance built into their premiums. It is also possible to buy gap insurance from a dealership, but this will typically be much more expensive. It is better to try and get this coverage from your car insurance company to save money. Having gap insurance is a great idea for anyone who owns a vehicle, but especially for those that have a bank-owned vehicle.
Accidents can happen to anyone, at any time, anywhere, and under any condition. Having the right type of vehicle insurance is important to getting your car fixed. But what if your vehicle won’t start? Or the motor dies on the highway? How will you get around? How will you get the car to a mechanic or your dealership? Having rental and towing reimbursement is a good idea to save you money.
Towing is expensive. Most companies will want their money up front for a tow. That may not always be possible, and that is where towing reimbursement can come in handy. Some insurance companies offer this as part of a supplemental auto insurance package, and it can save you a lot of money if you need to tow a broken down car.
Rental reimbursement is also a great feature to have on your auto insurance. If your vehicle is in the shop for repairs, you may need another car to get around. For usually a few dollars a month, you can have the piece of mind that comes with knowing rental vehicles are included in your insurance. A car typically costs $20-$30 a day, so for a few dollars a month, it could save you a lot of money if needed. In some cases, your deductible may have to be paid before a rental reimbursement is authorized from your insurance company. But if your vehicle is in the shop for repairs for more than a few days, it can be a life saver.
There are a few types of insurance options that are usually not so much supplemental auto insurance options, but standard ones. Collision coverage is a type of insurance that is generally mandatory on a bank-owned vehicle. Collision coverage will pay to fix your vehicle even if you cause the accident. Those that get collision coverage do, however, generally pay more for it, and there will be a deductible if you need to have your vehicle fixed. This deductible will have to be paid before any insurance kicks in. However, it can be well worth it if you are in an accident and need extensive and expensive repairs.
If you are in an accident, such as fire, hitting a deer, vandalism, or your vehicle is stolen, comprehensive coverage will pay for damages to your vehicle. There is also a deductible for this type of insurance, and the insurance company generally only pays what the car is worth at the time of the accident. However, this is a good coverage to have on your vehicle, as you never know when these types of accidents will happen.
Liability coverage is a type of auto insurance that pays for damage done to someone else’s vehicle in the event of an accident. It does not pay for damages to the policy holder’s car. This is an excellent type of insurance to have to protect yourself against damages you may do to another vehicle.
Insurance can be confusing. Choosing the right company, and the right coverage, can be time-consuming, but worth it in the long run. When you buy car insurance, consider the type of vehicle you are insuring. A bank-owned, new car will almost always require full coverage. An older model, or a very used car, may not need as much insurance. Be sure and get a quote from multiple companies. The Internet offers many sites that will give you multiple quotes. Don’t choose the first one; compare rates and coverage at a few. Talk to an insurance agent if you have questions.
Finally, ask if there are any discounts that you may qualify for. Insurance companies give discounts for vehicles with airbags, anti-lock brakes, and theft deterrent devices. They also give discounts for those that take driver safety courses, persons in the military, and students with good grades. There are many ways to save on auto insurance, even supplemental auto insurance. Talk to a qualified agent to get the best deals for the best coverage.