Welcome back! In part two of our Brush Up on Your Basics series we are going to dive into some of the optional coverages you will find available on an auto insurance policy.
Collision Coverage – This coverage is helps repair or replace your vehicle in the event of a collision. If you are leasing or have a loan on your vehicle it is typically required by your lender. Collision coverage is subject to a deductible of your choosing and the higher the deductible the lower the premium. The most common deductibles for collision coverage are $500 or $1000 though most of our carriers offer deductibles higher or even lower than these. The deductible will be a determining factor when considering whether to file a claim. Any damages to your vehicle that do not meet or exceed your set deductible are usually best paid for out of pocket.
Comprehensive Coverage – Often referred to as “Other than Collision Coverage”, comprehensive coverage helps repair or replace your vehicle for damages caused by a variety of events. Some examples being – hail, theft of your vehicle, vandalism, fire and falling objects. Like the collision coverage, comprehensive claims are also subject to a deductible and is often also required by leasing and financing companies.
Loss of Use – This coverage is oftentimes referred to as “rental reimbursement coverage”. Say you’ve gotten into an accident, filed a claim on your insurance and now your car is in the shop. For some, this is no problem, but many people don’t have a spare vehicle at their disposal. The loss of use coverage is going to help get you in a rental car by paying a portion or all your daily rental fees. The daily coverage amount will vary depending on what you’ve chosen but may be anywhere from $25 a day to $50 and generally maxes out at 30 days.
Roadside Assistance – Also called “towing and labor coverage”, roadside assistance can help get you out of trouble. With the costs being quite low, it’s an indispensable coverage that will grant you peace of mind. A flat tire fix, tow, fluid fill up or jump start is just a call away. Most of our carriers have dispatchers to send someone out to you and others offer you reimbursement for those unexpected disablements. Add it today and rest assured that your spouse, son or daughter are driving with that extra layer of protection courtesy of your insurance carrier.
Gap Coverage and Loan/Lease Coverage – So you finally bought that shiny new car you’ve been longing for. Unfortunately, after yesterday’s accident you’ve totaled it. Are you now on the hook for the remainder of your auto loan or lease? Gap or loan/lease coverage can help by paying the difference between what you owe on your car and what it is worth at the time of the accident. There are some limitations to how long you must add this coverage, so we recommend doing so when you are first adding your vehicle to the policy. The cost is relatively low and sometimes cheaper than the option offered by the dealership.
Uninsured Motorist Property Damage – This coverage is available specifically to those who have opted for liability only coverage on their vehicle(s). It will help repair your vehicle should it get damaged by a driver with no insurance. Since the driver has no insurance you are not able to file a claim for the damages leaving you with the bill. Because of the high rate of uninsured drivers in the state we, as an agency, recommend this coverage to everyone with liability only coverages on their vehicle.
We hope that you were able to learn a little bit more about the auto policy coverage options available to you. We’re here to help! If you are interested in adding or discussing these coverages call our Service Team at 720-283-1722.
Special Note- These examples are for reference only. All claims will be subject to your individual policy terms and conditions. These examples will not change or amend any insurance policy.