UPDATED: AUGUST 24, 2023 | 3 MIN READ
When shopping for car insurance, it’s easy to get overwhelmed by the options. But if you’ve got a classic car, some add-ons can make a difference. Keep reading to learn what care insurance add-ons you should consider.
What type of car insurance is required?
You probably know you need car insurance, but what kind of insurance is required? The answer depends on which state you live in. Most states will require you to have basic liability coverage.
Basic liability coverage
Basic Liability Coverage covers medical and legal fees if you hurt someone else or damage their property. Nearly every state requires you to carry Liability Insurance.
Personal injury protection (PIP) coverage
Not every state requires you to have Personal injury protection (PIP). PIP pays for your medical bills if you’re injured in a car accident, regardless of who was at fault. It also covers lost wages if you have to miss work because of the accident.
Other Common Coverages Required
Other common coverages that many states require include:
- Comprehensive covers damages caused by events such as a fire or theft
- Collision covers damages caused by accidents with other vehicles
Again, the insurance required depends on which state you live in.
What common car insurance add-ons are available?
Plenty of car insurance add-ons that aren’t required. But they could help you save a pretty penny in the future. Planning can be what saves your bank account — if you’d rather be safe than sorry, add-ons are worth it.
Uninsured/underinsured motorist coverage
Even though every state requires car insurance, some people drive around without coverage. What happens if one of them hits you? Or is their coverage not enough?
If someone hits you and they don’t have insurance or aren’t insured enough to cover all the costs, this will help you cover those costs. It also helps when a hit and run or if your car is hit while parked.
Medical payments coverage
Medical payments coverage covers the medical expenses of anyone injured in the crash. It will cover medical payments, regardless of who caused the accident. It also covers lost wages due to injuries, and other costs, like funeral expenses.
Comprehensive coverage
Comprehensive coverage helps cover any costs you may face in case of an accident or natural disaster. This type of coverage may also cover theft or vandalism of your vehicle.
Collision coverage
Collision coverage covers physical damage to your vehicle if you’re in an accident. You can purchase it as part of a standard policy or separately as an add-on.
Roadside assistance
Roadside assistance helps you get back on the road quickly and safely if you get stranded. You can choose between basic roadside assistance and a premium service that includes:
- Towing
- Battery replacement
- Jump starts
These add-on costs are as low as $5 – $7 monthly.
Rental car coverage
If you get in a car accident, the last thing you want to do is pay for a rental while your car is in the shop. This is where rental car reimbursement coverage can save the day. It’ll pay for your rental car costs.
Other car insurance add-ons to consider
By now, you’ve probably realized that there are many auto add-ons to consider. They go above and beyond regular auto insurance. Add-ons help you pay for all types of costs. Below are some more options to explore.
Rideshare coverage
If you’re an Uber or Lyft driver, you should consider adding rideshare coverage to your car insurance policy. This ensures you’re covered while you’re working. This coverage also covers food delivery services like DoorDash and UberEats.
Accident forgiveness
If you’ve ever been in an accident, you know how expensive it can be. The price of auto insurance skyrockets after you cause an accident. Accident Forgiveness helps you avoid these rate increases.
Gap insurance
What if you total your car in an accident, and it’s not worth enough to pay off your loan or lease? Gap insurance will make up the difference. If you have to pay out of pocket to replace your totaled car, gap insurance can help cover those costs.
New car replacement
What do you do if the car you have is totaled? New Car Replacement helps you get back on the road quickly. This add-on covers the cost of purchasing a replacement vehicle. However, it must be within your car insurance policy limits.
Vanishing deductible
A disappearing deductible is also called:
- Disappearing deductible
- Diminishing deductible
This rewards accident-free or ticket-free drivers. If you don’t file any claims or get tickets, your car insurance deductible drops or “vanishes.”
Custom parts and equipment coverage
If you’ve ever had to replace a custom part on your car, you know how expensive it can be. Custom parts and equipment coverage is a car insurance add-on that covers the cost of replacing parts of your vehicle that are unique to your car.
FAQs
What two additional coverages are considered full-coverage car insurance?
To have full-coverage insurance, you need to add comprehensive and collision coverage to your car insurance policy.
What’s the difference between liability and full coverage car insurance?
Both are important but different. Liability car insurance covers your legal costs if you cause an accident or injure someone else. If you’re in an accident, full-coverage car insurance provides coverage for all types of losses. It includes liability, collision, and comprehensive coverage.
Do I need more than liability car insurance?
The short answer is yes. If you’re only looking at liability coverage, you’re missing out on some of the best financial protection for your car and yourself.
What does 100/300/50 represent on a car insurance policy?
If you have 100/300/50 coverage, then you have:
- $100,000 in coverage for bodily injury liability per person
- $300,000 for bodily injury liability per accident
- $50,000 for property damage liability
What are five car insurance add-ons you should consider?
Here are five car insurance add-ons to consider:
- Medical payments coverage
- Collision coverage
- Uninsured/underinsured motorist coverage
- New car replacement
- Gap insurance
Deciding which car insurance add-ons you need
Learn as much as possible about each plan when shopping around for car insurance policies. Most insurance companies will offer a variety of add-ons that could save you money in the long run. Explore your options today.
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