Why You May Need More Than Basic Car Insurance

When you own a car you know you have to have basic insurance coverage such as liability insurance. If you got a loan to buy the car, you will also be required to have collision and comprehensive coverage. There are some states that require their residents to have uninsured motorist and underinsured motorist property damage and bodily injury insurance. These are the basic types of coverage that most people understand go into their car insurance policy. However, there are actually a number of other types of coverage that you may want to include in your policy.

Some insurance companies offer a medical payments coverage that covers all medical expenses for you as well as any passengers who happen to be in your car when an accident occurs, no matter whose fault it is. This type of coverage may even cover you if you are a pedestrian who gets hit by a vehicle, or it may cover you and your family members who are riding in someone else's vehicle. People who don't have health insurance coverage for these types of things can really benefit from this type of coverage. It is sometimes referred to as Personal Injury Coverage, or PIP.

Loan/lease gap coverage is a very important type of car insurance coverage if you are purchasing or leasing a new car with a loan. This coverage will pay the difference between the cost of replacing the vehicle if it is totaled and the amount still owed on the loan. This is designed to help you if you get into an accident shortly after you make your purchase because your vehicle will have lost value right away, but you still owe the entire amount of the loan. It can take a couple of years for the amount of your loan to equalize with the current value of your car.

Work loss coverage can help pay for wages that are lost because you are unable to work after an accident because of your injuries. If you are the main breadwinner in the family, you may want to consider this type of income protection.

You can also get car insurance coverage that provides for a rental car while yours is getting repaired, and this is usually referred to as rental reimbursement coverage. If your car breaks down, you may need to have it towed to a mechanic's shop for repairs. Towing and labor insurance or roadside assistance coverage can cover the cost of towing your vehicle to a shop. This insurance coverage is very inexpensive and may only cost you about a dollar per month.

If your vehicle has customized parts or specialized equipment, you can get separate coverage for each of those things. For instance, if you have a special stereo system, customized trailer hitches, running boards or wheels and spoilers, you can have them covered individually.

There are other options that are available to you, so when you are discussing car insurance with your agent, be sure to look at all of the different options so that you will know what kinds of coverage you prefer to have. Sometimes you need more than just the basic car insurance coverage.

Article Source: http://EzineArticles.com/6871514