Besides the most well-known types of car insurance -- liability, full coverage, uninsured/underinsured motorist coverage, PIP, and MedPay -- there are several other coverage options available to drivers who want added protection. Here’s a breakdown of the most common ones:
When you buy or lease a new car, its market value immediately decreases the moment you sign the contract, simply because it is now considered used. As time passes, even within the first few years when most of us would still consider the car to be fairly new, its value will continue to fall significantly, all while you are paying the price it was valued at when it was brand new.
If you get into an accident that totals your leased or financed car, basic coverage will only pay for how much the car is worth at the time of your accident, not how much you paid for it or might still owe on it. This can leave you to foot the leftover bills yourself. Gap insurance is an option that will bridge the gap between what the car is worth and what you actually owe on it in the event of a serious accident.
Non-owner insurance is an option for drivers who do not own cars, so that they are covered while driving someone else’s car. If you get in an accident while driving a car owned by someone else, their insurance should kick in and pay any expenses, but their coverage may not be enough in some cases. If there are still gaps in payment, which you will then be expected to take over, your non-owner insurance can pay the remaining expenses.
This insurance is usually liability-only, and it does not include comprehensive or collision coverage. These policies usually do not include rental cars either, so it’s important to check with your provider if this is how you’re hoping to use it. In most cases, the policyholder must prove that no one in their household has a car that they can use.
Drivers who do not have a car and intend to regularly borrow someone else’s car should consider non-owner insurance for that added protection, as the car owner’s insurance may not be enough to cover all costs in an accident. Additionally, people who are planning to cancel their regular car insurance for a time should look into getting non-owner insurance -- it’s generally less expensive than insurance for a car owner and having a gap in coverage can lead to notable price hikes when you next apply for insurance.
If your regular liability insurance policy is not enough to cover the expenses in an accident you are at fault in, umbrella insurance can pay for the difference. Umbrella insurance can cover gaps in payments for medical expenses, legal fees, or property damages for the other party. An umbrella insurance policy will cover not only you, but also other members of your household.
To qualify for umbrella insurance, you have to be paying for a high amount of liability coverage to begin with. Though adding umbrella insurance to your coverage will inevitably increase insurance costs for you, the higher liability coverage costs will likely be a bigger part of any price increase.
Whether or not umbrella insurance will benefit you depends on your situation and how much you can afford to pay in premiums. While umbrella insurance is not necessary for all drivers, it can offer added peace of mind that many drivers prefer to have.
If you get into an accident and won’t have access to your car for a few days, rental reimbursement coverage can help. Rental reimbursement is an insurance option that offers coverage for rental vehicles or alternative transportation when your own vehicle is unusable. This type of plan typically includes daily price limits as well as limitations when it comes to the situations you will be covered for but is useful in the event of an accident that makes overnight car repair necessary.
Car insurance goes beyond liability or comprehensive coverage, with many of the optional add-ons offering protection in situations you might have never considered. Whether or not you need any of these types of coverage depends on the individual, but for many drivers, they can add a sense of security that is priceless.
Whether you need gap, non-owners, or additional coverage, we can help you save. Find the best quotes by entering your zip code now!