Life is full of options, and the same is true of a Texas car insurance policy. Frankly, everything other than liability coverage is optional, however, insurance companies offer a number of options worth considering beyond uninsured motorist coverage, comprehensive and collision coverage, and medical coverage. Here are 4 options worth knowing about.
Towing & roadside assistance provides a number of useful services including towing, changing a flat tire, provide a gallon of gas (if you’ve run out), charging a dead battery, and unlocking your car if you happened to lock your keys in the car. In most cases, these services are all inclusive.
The coverage is purchased on the basis of a towing charge, $50, $100, $200, etc. How much of a tow you may need depends on where you live, your commute, where you travel and more. Keep in mind that a $50 tow probably won’t cover a tow between Dallas and Fort Worth.
Rental car reimbursement is coverage which may only be used when your car is in the shop for repairs resulting from a claim. It does not apply if your car is in the shop for scheduled maintenance or other repairs.
The amount of coverage is usually represented with two numbers including;
- 25/750
- 30/900
- 35/1050
- 40/1200
- 50/1500
The first number is the daily rental rate. The second number is the total coverage available over a 30 day period. Some insurance companies will not go beyond 30 days and others may (if you’re using one of their preferred repair shops and/or rental companies). The level of coverage you need largely depends on the type of car you currently driver.
GAP coverage covers the “gap” between what your car is worth if totaled and what you owe on it. If the car is totaled before the loan is paid off, or the lease is up, you are responsible to pay the balance remaining after the insurance company pays the totaled depreciated value of your car, unless you have gap insurance. This is an excellent option considering the average cost of a new car is over $33,000 and how quickly many models depreciate.
New car replacement picks up where GAP coverage leaves off. This coverage is usually offered only on new cars, and for the first one to two years of vehicle ownership, depending on the carrier. If the car is in an accident during the first year of ownership and considered a total loss, the car is replaced with a brand new vehicle. For those insurance companies that offer this option for two or three years, the carrier typically pays a “cash equivalent” for your car such as what does a 2014 Honda Accord go for that was in roughly the same shape and mileage as the one you just lost.
What options do you think are important? Share them, along with your questions, comments, and experiences, with me on our Google +, Facebook, and LinkedIn pages! I’d love to hear from you!
