Car insurance is a must in the U.S., but not everyone grabs the same coverage. There are dozens of types of riders and provisions to choose from, and you need to pick the best for you. The traditional parts of your insurance include bodily injury, personal property liability, personal injury protection, comprehensive and uninsured motorist. However, you may save money in the long run if you consider adding these riders to your policy.
MedPay. Though it may seem redundant at first glance, this rider covers medical bills up to your coverage limit for you, your family and others riding in your vehicle in case of an accident. It can even pay for costs not covered by your health insurance. No matter who's at fault, MedPay covers you whether you're involved in an accident while walking down the street, riding in a friend's car or taking public transportation. You pay no deductible or copay, but it's built into your premium.
Rental reimbursement. If you're involved in an accident and drop off your car at the local mechanic, you'll still need a car for the basics, such as getting to your job. This coverage allows you to rent a similarly sized vehicle to replace yours if it's damaged or stolen.
Towing and labor. If your car breaks down at the side of the road or your tire goes flat on the highway, this covers out-of-pocket costs for towing and labor.
Gap auto insurance. The minute you drive your car from the dealership, it begins a continuous depreciation in value. So what happens if you get into an accident soon after buying that car? Your regular car insurance may not cover a sufficient amount to replace it. A gap insurance add-on will pay out the difference between the actual cash value of your car and whatever amount is left on your auto loan if your car is totaled in an accident.
You're required to keep certain coverage depending on the state you live in. Maintaining the basic car insurance will ensure you're met with basic needs, but add-ons could help plug the holes in your coverage.
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