5 Things You Should Give up on Your Auto Insurance
Auto insurance companies and their independent agents want to sell you a policy and all the optional coverage they can. The more insurance they sell, the more money they make. While many of these optional types of coverage are useful, it is important to decide whether all of the coverage types offered are truly needed for you to be adequately protected behind the wheel.
Every state has laws regarding mandatory auto insurance for drivers. Insurance quotes provided ill reflect state laws regardless of where you live. It is the optional coverage that you can accept or decline, and the following five coverage types may or may not be worth the cost.
#1. Personal Injury Protection.
Some states make this type of coverage mandatory. You may have to purchase PIP in order to cover the costs of personal injury regardless of who caused an accident. The idea here is to reduce the number of fraudulent insurance claims. If you live in a state where PIP is not required by law, consider the costs of this coverage versus other protection you may already be carrying. If you and your passengers are already covered by a personal health insurance policy, chances are your medical bills will be paid for, meaning that PIP is not as valuable as it would be otherwise.
#2. Accidental Death And Funeral Costs.
A good number of insurance companies promote this type of coverage, suggesting it be added to the policy. This type of coverage may already be written into your life insurance policy, meaning that some of the amount dispersed is sent directly to the funeral home of your choice. If you already have an accidental death rider attached to your life insurance, there may be no need to duplicate the costs by adding this to an auto insurance policy. Accidental death coverage applies whether you are killed in your car or anywhere else.
#3. Car Rental Insurance Coverage.
This optional coverage doesn't cost all that much, but there may be no need to add it to your policy. It really only covers situations where your vehicle is damaged and it is in the shop for repairs. Car rental insurance coverage does not apply for other rental car needs. Also, if you are involved in a collision where the other driver is at fault, the other driver’s insurers will likely pay for your rental car costs if the car is towed from the scene of the accident and/or is being repaired.
#4. Emergency Roadside Assistance Coverage.
Depending on the insurance provider, this type of coverage can actually be quite expensive. Many new car models are sold with a full roadside assistance package, meaning you will not need to purchase this as part of an insurance package. Also, if you are a member of a travel club such as AAA, you do not need this type of coverage. Quite often the coverage through an insurance provider is limited to a certain number of tows, roadside repairs and lockouts.
#5. Gap Coverage.
Gap insurance is often required when you finance a new or late model used vehicle, but after a few years it usually becomes unnecessary. Gap covers the difference or “gap” between the amount remaining on the loan and the market value of the car in the event of a collision or theft.
By giving up these coverage options on your policy, you could save hundreds of dollars. This could go a long way towards taking care of expenses and saving extra money in the process!
The team at DiscountCarInsuranceQuotes.net contributed this article. On their site, they offer drivers the chance to get free quotes, compare rates from leading insurers, and lock in their lowest rate.