Economists and insurance analysts both agree that the current economic slowdown is forcing many Americans to drop car insurance coverage to save money. Driving without insurance is illegal in 48th states and drivers caught without proof of insurance can end up paying fines or worse, getting jail time.
Experts say that with the unemployment closely tied to the number of uninsured motorists, the U.S. can expect to see more uninsured drivers on the nation’s roads. More uninsured car owner also means a higher chance of getting in an accident with one. Because of this, insurance providers are jacking up premiums in anticipation of more accidents involving uninsured drivers.
There is, however, a better way to save money and slash insurance expenses significantly, experts say. Insurance ‘riders’ can help policyholders extend their coverage and avoid costly repairs or expenses in the event of an accident.
Riders serve as additional protection for car owners and policyholders. There are different riders for the different needs of car owners. Purchasing added options like riders can help motorists avoid shelling out money from their pockets should the need arise.
Specialists explain that there are different types of riders to meet the needs of different clients. A towing or repair rider would give policyholders the ability to ask for roadside assistance in the event of a breakdown or accident. Insurance providers usually have contracts with local repair shops and towing services to assist clients in need of towing or repair services.
For business travelers, a rental reimbursement rider would cover a large majority of rental car companies. This particular option is best suited for policyholders who regularly rent cars for business or pleasure. Some providers offer this rider so clients no longer have to deal with damage expenses in case of an accident. Some rental riders offer additional protection for motorists who make use of rental cars.
Umbrella and custom riders essentially cover any gaps in the coverage purchased by a policyholder. While car owners have to pay more to avail of the insurance riders, they can be invaluable in the event of an accident. Umbrella riders offer drivers comprehensive protection against any gaps that can expose them to liability claims. Custom riders, on the other hand, allow policyholders to opt for specialized coverage and added protection for their specific needs.
Experts contend that while paying for more can seem counter-intuitive for car owners cutting back on insurance expenses, the added options can assure them of lesser expenses in the future.