I have always loved cars, but a few months ago I realized that there were a few things that I needed to do. I started evaluating my auto insurance plan, and I realized that it wasn't adequate for what I needed. I began focusing more seriously on choosing better auto insurance, and I spent weeks evaluating different policies. It was pretty time intensive, but I was able to find a great policy that really worked well for what I needed. This blog is here to help you to know how to choose auto insurance so that you can protect your finances.
Full-coverage auto insurance is important. You're required to have full coverage when you're financing a vehicle. Even if it's not required, it's important to have full coverage if you can afford it because with it you'll be covered if you wind up in an accident. The problem is, people think full coverage means that you have every type of auto-insurance benefit possible. Is full coverage really full coverage? Here are three things that full coverage doesn't cover.
Customized Equipment and Parts
If you like to tinker with your car and add customized equipment and parts to it, you need to make sure that they're covered in case you end up in an accident. When the insurance pays for the repairs or the cost of a totaled vehicle, it goes by your stock vehicle's value. This means that if you have a Honda Civic with a $4,000 stereo system and a $500 exhaust system, the value will be calculated by the stereo system and exhaust system that came on the car from the factory, not based on the value of your particular stereo and exhaust systems.
How you can make sure that your customized equipment is insured depends on your insurance company. Some insurance companies have a specialized insurance plan for customized equipment, and without that specific coverage, there is no way to receive payment. Most companies don't require this coverage, but you need to make sure yours doesn't. If you don't need this specific coverage, you need to have receipts that show the costs of your parts.
Roadside assistance is not included with full-coverage insurance. It is an add-on feature that you can choose to have or not have with any types of insurance you choose. The costs and features of roadside assistance vary by insurance company. However, roadside assistance generally includes free towing within a certain number of miles, tire changes, and gas that will be brought to you if you run out.
Rental-car reimbursement is another add-on feature that isn't included with full-coverage insurance. This allows your auto-insurance company to reimburse you if you need a rental car after you get into an accident. The coverage usually tells you how much it will reimburse you for each day and up to a maximum number of days. Sometimes there are different options so you can choose a higher daily amount if you want to ensure you can rent a nicer car.
Full coverage is amazing coverage, but it's more like "most coverage." While it covers just about everything, there are still different things you can add to your insurance to make it even better. Make sure you review your insurance policy carefully to make sure there is nothing you want to add. Never assume that full coverage covers everything you might need or want.