Reducing your limits or dropping a few coverages isn't the best way to lower your car insurance costs, as it may leave you exposed to loss or liability. While discounts on your premiums are ideal, they're not the only viable option. Sometimes, you can save a lot of money over time by customizing your coverage with less common but useful car insurance extras.
Full-coverage auto insurance comprises the following components:
- Third-party bodily injury and property damage liability coverage
- Personal injury protection (PIP) insurance for accident-related medical bills
- Collision coverage for repairs to a crashed car
- Comprehensive policy for car theft or damage related to vandalism and events other than crashing
- Uninsured/underinsured motorist coverage for medical bills and property repair costs when the at-fault driver lacks proper insurance
Depending on your specific circumstances, you could save money by adding these less common car insurance extras to your standard auto coverage:
- Gap insurance: If your insured car has a lower market valuation (collision payout) than the money you owe on it when it's totaled in a crash, gap insurance can settle the difference.
- Rideshare insurance: It covers you for the duration between signing in to the rideshare app and accepting a rider's trip request. Neither your personal auto policy nor rideshare firm's car insurance protects you from accident risks within this timeframe.
- Roadside assistance: This endorsement can help minimize disruption to your schedule for the day when you get caught up in a road emergency, such as a flat tire, on your way to work.
- Mechanical breakdown: Explore this coverage against various types of mechanical faults, including items excluded in most standard new-car warranties.
- Rental reimbursement: When you rent a car as yours undergoes repair, this coverage option will pay your rental fees.
- Coverage for driving in Mexico: You should get a special Mexican auto insurance policy if you'll be driving across the border into Mexico.
- New-car replacement: It covers the decline in the resale value of a new car immediately after it leaves the parking lot.
- Windshield insurance: You could pay up to $1,500 or more to replace a windshield for a car that has rain-sensing wipers. Since out-of-pocket expenses under your comprehensive coverage can go up quickly, you may consider getting special coverage for your car's windshield.
- Original Equipment Manufacturer (OEM) insurance: Your standard auto insurance policy may only pay for repairs to generic car parts. To cover factory-original components of your new car, you may consider getting OEM insurance.
- Modified car insurance: Expensive car system upgrades, such as performance enhancers or high-end sound systems require special coverage. You can obtain customized equipment insurance to cover the potential replacement costs of such modifications.
Read The ABCs of Car Insurance: Everything You Need to Know About Coverage Options
Adding extra coverage will raise your annual insurance costs. However, savings that outweigh the increase in premiums are possible if your extra coverage protects you from costly issues like:
- Bodily injury/property damage claims
- Auto liability lawsuits
- Damage to your car
To understand this better, assume you're a regular Uber driver. If you got in an accident not covered by your personal car policy or Uber's insurance, you could face significant auto liability expenses. Since you're constantly exposed to these risks while driving for Uber, you may avoid devastating financial losses by carrying rideshare insurance.
For optional car insurance extras that can help you save money in the long run, contact our experts at Spotlight Insurance Agency today. We are ready to help you find a policy that's best suited to your coverage needs and budget.
