5 Car Insurance Add-Ons That Are Worth Paying For

Car Insurance
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Before buying auto insurance, it's important to understand which insurance offers good value for money.

Key Point

  • Drivers are required to have the minimum automobile insurance required by the state.
  • However, you can also purchase additional protection.
  • There are 5 types of paid extra coverage, including collision, gap, and new car replacement.

Ascent's Picks for the Best Auto Insurance Companies

Buying auto insurance can be complicated. Most states require drivers to meet certain minimum coverage requirements, but there are also many optional add-ons for his type of auto insurance. And whether to buy protection for these options can be a more confusing question.

It's not worth paying for all kinds of add-on protection, but there are definitely some very important policy protections. In fact, here are five things worth paying for.

1. Collision coverage

Collision coverage is one of the most important types of voluntary insurance. In fact, it may not be an option for those with auto loans as lenders generally require this coverage.

Collision coverage pays for the repair or replacement of a vehicle if the policyholder causes a collision. Without this, the driver who caused the collision would have to replace his car himself or pay for the necessary repairs without financial assistance.

This is because the mandatory insurance that drivers are obliged to purchase usually only covers property damage caused to another person's vehicle if the driver causes a collision.

Collision compensation saves drivers from having to pay all costs if their car is damaged or destroyed in a collision. This is a form of insurance that is essential for most drivers.

2. Extensive coverage

Comprehensive coverage, like collision compensation, is an optional add-on that many auto loan lenders require motorists to purchase. This type of policy protects the driver from non-collision losses. For example, if your car is wrecked, a tree falls on it, or it is stolen, this is insurance that will pay your bills.

Without comprehensive coverage, drivers are left with bad luck if something goes wrong that wasn't caused by the accident. replace the car

3. Gap insurance

Gap insurance is an important additional cover for drivers with auto loans. Without it, drivers could face serious financial hardship if their vehicle is wrecked or stolen and not recovered.

You see, insurance only pays the car's fair market value at the time something happens.But your car loan outstanding can be higher than that. Even if the insurance pays out less, the driver still has to pay back the total amount owed. Gap Insurance pays for the difference between what the insurer says the car is worth and what the driver owes, making sure this doesn't have to go out of pocket.

Lenders usually require this too, but for good reason, as most people can't afford to continue making loan payments on a car they don't have anymore.

4. Car rental refund

Most drivers should also seriously consider purchasing refund insurance for their rental car. However, no lender mandates this and it is not required by state law.

This insurance add-on pays for most or all of the cost of the rental car while it is being repaired after indemnified damage or while the insurance case is being settled after a total loss. Without it, drivers may have to spend weeks without a car or pay for a rental car out of pocket.

5. New car replacement guarantee

Finally, a new vehicle replacement warranty is a great add-on for drivers who own newer model vehicles. New cars depreciate quickly, so insurance premiums are usually much cheaper than buying a new car. New car replacement coverage allows drivers to actually get an equivalent new car if something goes wrong.

Each of these different types of coverage will cost a little extra to your insurance premium, but they are worth adding to your policy to avoid serious out-of-pocket losses in the event of a covered issue.

Ascent's Best Auto Insurance Companies.

Ready to buy auto insurance? Whether your focus is on price, claims processing, or customer service, we research insurers nationwide to provide best-in-class auto insurance coverage doing. Get started today with a free expert review.

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