All states have a minimum liability cover that motorists are required to carry. However, your insurance agent is also likely to offer you a number of add-ons or ancillary coverage which may be optional. While some of them are certainly worth the extra costs there are a number of them that are simply not worth it.
It is better to investigate these 5 add-ons if you decide to purchase insurance and it includes:
– Gap Insurance – This insurance will offer protection if in case, you owe more money on your car than what the insurer will pay you in the event of an accident. In general, insurance companies use standard evaluation procedures to arrive at the worth of your vehicle at the time of crash. But, if you leased or financed your car, then you may owe a lot of money by way of loan or lease when compared to what the insurer will give you. This is known as gap insurance. If the vehicle is not insured it may costyou a lot of money that you will be paying out of your pocket in the event of an accident.
– Roadside assistance – This will typically include mobile repair as well as towing charges in the event of a vehicle breakdown. The mechanics will help in changing tires, fill up empty tanks, and also assess other mechanical problems and address them. If the problem cannot be fixed, you vehicle would be towed to the nearest repair center. This is useful especially if you travel often or travel with your family.
– Vanishing deductible – This is something where your deductible will reduce by some amount, may be around $50 or $100 at the start of the policy and the same would continue each year until it reaches zero. These deductibles will continue to drop as long as your driving record remains clean.
– PIP – This is an insurance cover that takes care of a number of expenses if you are involved in an accident depending on the coverage you have. The medical costs for the driver, passengers, family are covered up to a certain amount. PIP is a must in the no-fault insurance states as you cannot claim anything from the other driver.
– Uninsured motorist coverage – For those who don’t live in the no-fault states there is always a risk of getting hit by an uninsured motorist, where you will have no insurance cover. Hence, having uninsured motorist coverage is useful.
