When To Consider These Three Auto Accident Riders
Auto insurance riders are coverage add-ons that you can buy in addition to the basic coverage that your policy offers. There are numerous auto insurance riders; here are some of the valuable ones to consider.
Rental Car Substitute
Rental car substitute provides you with a rental car as you wait for the insurer to repair your damaged car or replace your totaled or stolen car. The coverage ensures you never go without transportation irrespective of what might happen to your car. For example, if an accident damages your car and the auto shop requires four days for the repairs, then your carrier will pay for your rental car for those four days.
Coverage for rental car substitute is useful if you have a job or live a lifestyle that requires a personal car at all times. Maybe you live in a city with poor public transport, or you must drive your kids to school every day.
Waiver of Depreciation
If something damages your car or someone steals it, standard car insurance compensates you for the value of the car just before the damage or theft. Unfortunately, that value of the car might not be enough to buy you a similar car because cars depreciate with time. The waiver of depreciation coverage makes you eligible for compensation for the full value of the car without factoring in depreciation.
A new car depreciates from the moment you drive it out of the dealership lot. Some makes and models depreciate faster than others. If your car is one of those with depreciated acceleration, then consider a waiver of depreciation coverage to shield you from the losses you would experience if something damages the car or someone steals it.
If you have an accident in your insurance history, the insurance industry considers you more likely to experience an auto accident than another driver with a clean driving history. The increased risk means an auto accident triggers an increase in auto insurance premiums. However, an accident forgiveness rider shields you from the rate increase.
An accident forgiveness rider is useful if your car has a higher-than-normal risk of an accident. An example is if you have a teenage driver in the house, your work commute involves a dangerous road, or your spouse is a dangerous driver.
The valuable auto insurance riders vary from motorist to motorist because circumstances and needs differ. Talk to an auto insurance agent to help you determine the best riders for your circumstances.