Do you really understand what you are buying when it comes to purchasing auto insurance? Surprisingly, most people don’t. In this case, what you don’t know can hurt you; you could end up spending too much. Spend a few minutes on getting acquainted with auto insurance basics to buy the perfect policy.
Medical Payment Benefits. If you have full health insurance coverage through your employer, or other provider, then you may not need additional health insurance coverage through your auto insurance. On the other hand, if you don’t have health insurance or are under-insured then this is one of the more valuable types of insurance to have. Remember, buy what you need but don’t cut costs on essential coverage.
Rental Car Coverage. Check your credit card to see if you already have automatic coverage when renting a car. Many credit cards –especially gold or platinum level cards – provide rental car coverage as a standard benefit.
Towing Insurance. If you are a member of a travel club or other popular automobile groups then you might already have towing insurance. Stop duplicating benefits and save a few dollars.
Gap Coverage. Gap insurance coverage pays the difference between the balance amount of your auto loan and the actual cash value of the vehicle. If you have just purchased a vehicle then Gap coverage might be one of the best bargains out there. If you bought right (and don’t owe more than the vehicle is worth) then eliminating Gap insurance will further reduce your rates.
Loss of Use. This provides a rental car when your car is being repaired. If you own a second automobile then you may not need a rental car or Loss of Use coverage.
