Wednesday, January 22, 2014

Auto Insurance Add On’s You May Not Have Considered

Every state in the nation has rules and regulations about the things that you must have on your auto insurance. There are minimum liability amounts that are required, and certain coverage that drivers with financed vehicles must have. However, have you considered what other things you can add to your auto insurance that may be worth your time and money?

Roadside Assistance
While many drivers do not think that it will happen to them, accidents happen and cars break down. This is where roadside assistance swoops in to save the day! This type of auto insurance add on includes towing assistance and mobile repairs in case you find yourself on the side of the road with no other alternative. The mechanics employed by the roadside assistance crew are equipped to gas up your car (you would be surprised at how often drivers run out of gas on the road), change tires and assess problems. Sometimes however, the problem is not something that can be repaired while your car is on the side of the road. If this happens, you will be towed to the closest car repair facility. Even though the chances of this type of luck befalling you, not having roadside assistance coverage is really not worth the risk. It is better to be safe than sorry!

The Vanishing Deductible
This auto insurance add on has just recently become more popular as the large insurance companies have been doing some heavy advertising connected with it. This add on is offered as a premium policy and is something that is definitely worth adding on. The vanishing deductible works by subtracting a certain amount of money from your original deductible each year until the deducible is nothing. It simply vanishes as the name suggests. It may take a few years to get down to zero, but how wonderful would it be if you needed to file a claim and had no deductible? There is a catch to this add on though. In order for your auto insurance company to keep lowering your deductible each term, you have to keep a clean driving record. If you get in an accident that is your fault, things are reversed and you must start at the beginning again. However, if you get in an accident that is not your fault and are using your company to get your vehicle repaired, you pay the lower deductible rather than the original and your deductible will still continue to vanish.

Gap Insurance
This type of add on insurance keeps you protected if you get in an accident and the insurance payoff is not enough to pay off your vehicle. In a case like this, your company will pay it off for you as long as you have gap insurance. This may or may not be in your favor. It depends upon the condition of your car right before the accident. For instance, if you still owe $10,000 on your car, but in reality it is now only worth $7,000, this is all the insurance company will pay.

When shopping for insurance, be sure to consider these add on’s and find out if they are right for you.

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