Car Insurance Coverage
Car Insurance Coverage
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Know What Your Car Insurance Covers? Read about different types of insurance policies.
Do you know exactly what your auto insurance policy covers? Are you covered for windshield damage? Are you liable for vehicles you drive, but do not own? Many people have no recollection of what they are covered for in terms of their insurance policy. Auto insurance is just a broad term that is used to identify the whole concept of financial liability. There are several types of car insurance terms and policies that exist to help protect vehicle owners and drivers. The basic insurance coverage is understood by drivers, but there are some secondary additions that enhance your policy. Read about different types of life insurance.
As part of your basic car insurance plan, you have the option to add some of the following additions; gap insurance coverage, work loss coverage, parts and equipment coverage, towing coverage, GAP coverage and rental insurance. We will be looking at each of these additions in detail below.
GAP Insurance Coverage: This type of insurance coverage is slowly becoming popular among many new vehicle buyers. Cars are known to be horrible investments because of their high depreciation value. If you purchase a brand new vehicle for twenty-five thousand dollars, it will not be worth same in five years. If your vehicle is totalled in five years in a horrible accident, the insurance company would only provide you with money to make up for the value at the time of the accident. There will be a fairly large GAP between the purchase price and what you receive from your insurance company. GAP insurance coverage is there to make up for the difference in cost that you do not receive.
Rental Insurance Coverage: Have you ever found yourself thinking about whether you should purchase the car rental company’s insurance plan? If you have your own rental insurance coverage with your existing insurance policy, you would not have to worry about coverage from the rental company. For only ten to twenty dollars more per year, you could benefit from full rental insurance. If you rental vehicles occasionally, you will see that this option could save hundreds of dollars each year.
Work Loss Coverage: If you get involved in an accident, you may be forced to stay home from work due to injuries or medication. In this case, you have no source of income due to the loss of work. This is where your insurance company comes in with a helping hand. With the use of your current employment pay stubs, the insurance company will come up with a relatively close substitute for your income loss. Essentially, if you were making seven hundred dollars a week, your insurance company would pay you about five hundred dollars to make up a percentage of your income.
Parts and Equipment Coverage: This type of coverage is not so popular among many drivers, as there isn’t much use for it. Simply put, this type of insurance coverage is for when you make any parts of vehicle equipment purchase. A brake change or parts replacement would qualify for a claim under this term. If you are spending only a few dollars to replace something, it isn’t worth submitting a claim in.
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