3 Car Insurance Add-Ons You Should Consider
Auto insurance protects you against financial loss if your car sustains damage. You can select the mandatory third-party insurance plan that offers limited protection or you can select comprehensive insurance. A comprehensive insurance plan gives the highest level of protection, including coverage for repairs, personal injury claims, and property damage.
You can strengthen your comprehensive insurance policy by investing in optional add-ons at an extra cost. Here is a rundown of some essential insurance add-ons you can consider.
Zero Depreciation
A zero-depreciation rider (no-depreciation rider) is an essential add-on, especially if you just bought a new car. When you file a claim, a regular insurance plan compensates you based on the depreciated value of the vehicle, which may not be enough to cover your replacement costs.
Some factors insurers consider to determine depreciation rate include a car's make, model, mileage, and age.
With a zero depreciation rider, you enjoy 100% coverage, so the insurance company settles the full claim amount, not just a part of it. This rider coverage is particularly vital for drivers of luxury vehicles that have costly replacement parts.
Return to Invoice (RTI)
With this add-on, the compensation after a claim is equivalent to the car's original value, not the insured declared value. For example, if your car gets stolen and the authorities can't trace it, the return to invoice coverage kicks in. So, your insurer will pay you the entire amount you spent purchasing the vehicle.
Additionally, suppose your vehicle gets severely damaged and the restoration costs exceed the car's resale value. In that case, RTI guarantees the entire car value, and you don't need to worry about the repairs. Note that you can't use this coverage for repairs or minor damage, but only for stolen vehicles or cars damaged beyond repair (total loss).
Road Assistance
Your car might run out of gas, break down, or need a jump start while you are in the middle of nowhere. In such situations, road assistance will be your ticket to safety. With this coverage, you have round-the-clock access to emergency services like battery jump-start, fuel refilling, flat tire change, lost key recovery, mechanic services, towing, and more.
All you need to do is contact your insurance provider and give them your location, and they will send out a team in no time.
As you buy or renew your comprehensive insurance coverage, consider these add-ons to enhance your coverage. An auto insurance agent can run you through the available riders and help you choose the most suitable ones.