Add-Ons for Car Insurance
Owning a car comes with certain responsibilities. Not only would one be responsible for filling up the gas tank, general maintenance, and repair, he or she is also responsible for having car insurance. Car insurance is a requirement by law but having insurance also gives car owners peace of mind knowing that should an accident happen they are covered. Basic car insurance will cover most drivers for the damage they cause to the property of others. Other insurance plans also cover the policyholder’s car in the event it is damaged. When basic coverage is not enough, policyholders can purchase add-ons to extend the coverage of their policies.
One widely used add-on is uninsured motorist insurance. Although car insurance is a requirement by law, there are many people out there driving without proper insurance. If an uninsured driver was to cause an accident, the victim would likely be left footing the bill to get his or her vehicle repaired. With uninsured motorist insurance, a policyholder who is victim to an accident caused by an uninsured driver would be able to get his or her vehicle repaired by the insurance company. If a motorist is insured and caused more damage than his or her insurance policy will cover, uninsured motorist insurance will cover policyholders for the remainder.
When a vehicle is too damaged to be repaired, the insurance company will make the decision to junk it out. This means the policyholder is paid the amount the car is worth at that time. The problem is, the value of a new car depreciates rapidly and the junk out price is not sufficient to cover the entire amount still owed on the car. A GAP insurance add-on is perfect for this type of situation. GAP insurance pays the remainder of what is owed on a financed vehicle once an insurance payment is made. This relieves the policyholder of any other financial responsibility for the financed car and allows them to quickly purchase a new vehicle.
Roadside assistance and car rental are two add-ons that any car owner should consider adding to his or her policy. Roadside assistance gives the policyholder the added benefit of being able to call a tow truck when it’s needed, get a jump when a battery is dead, and many others. This can give motorists additional peace of mind when on the road. A car rental add-on helps policyholders pay for the costs associated with renting a car should their vehicle be damaged or is being repaired. This type of coverage may not cover the entire costs but does help tremendously.
Basic car insurance is all that is required by law and for the most part gives people the coverage they need. When basic coverage is not enough to fit a person’s needs or his or her peace of mind, there is always auto insurance add-ons. These add-ons can extend the coverage of the current policy or can give policyholders added protection when they need it most.
Source : http://ezinearticles.com/?Add-Ons-for-Car-Insurance&id=6915459
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