What other types of insurance can you consider apart from total insurance?


Total insurance consists of comprehensive, third party liability and collision insurance, a package that is likely to provide you good coverage against most adverse situations. The third party liability insurance which is mandated by law will take care of the damages that a fellow motorist has suffered through an accident caused due to your mistake. The comprehensive insurance will cover the cost of damages caused by natural disasters like floods and hurricanes, acts of vandalism and lastly, theft. The collision insurance will take care of the damages caused due to a collision both with another car as well as with an immovable object like a wall or a tree.

However, you can go for other types of insurance for coverage against a variety of unexpected situations. For example, if your car is very expensive or new and there is an auto loan, you can go for totaled car insurance and gap insurance. Totaled car insurance will provide compensation or coverage in a situation where your car has been totaled in an accident. It is interesting to note that you will need gap insurance considering that the depreciation value of the car is high while the auto loan takes some time to actually pay off. So the gap insurance will take care of the difference between the compensation provided by totaled car insurance based on the market value of the car and the actual loan amount that you will have to repay to the lender.

There are several other types of insurance too like the uninsured or inadequately insured motorist insurance. This is a situation where you have suffered auto damages due to an accident caused by a motorist who either doesn’t have third party liability insurance at all, or has an insurance that doesn’t provide sufficient coverage. This helps in preparing for scenarios, which are beyond your control, especially if you live in cities with high traffic or high accident rate.

There are add-ons for which you might want to take insurance as well. For example, rental car insurance covers the cost of a rental car that you will use while your own vehicle is being repaired after an accident. This is important when you need a car at all times at your disposal and the rental rates are extremely high in the place you live. Similarly, there are towing as well as emergency roadside assistance coverage which are provided by some insurance companies.