As a driver, understanding car insurance coverage options is crucial. At Affordable Insurance in Aurora, we give our customers all the information they need to make the best decisions for their future. Nobody expects to get into a collision or to suffer damages to their car, but it happens to thousands of drivers each day. Investing in the right insurance plan for you and your vehicle will give you peace of mind. If the worst should happen, you can relax knowing that your insurance company has you covered.
There are a number of different types of auto insurance that you can take out to protect your vehicle. The following options are designed to pay for those costs incurred when your vehicle is damaged in various situations. They do not cover damages caused to the vehicle of another person. For example, if you are involved in a collision with another car, you will need liability insurance that can cover the cost of damages to the other car. Liability insurance will also cover the medical bills of a third party injured in the collision. If you or your passengers are injured in an accident, it is your medical payments coverage that will take care of medical costs.
The main vehicle coverage options available to drivers are called collision coverage and comprehensive coverage. Collision coverage is pretty self-explanatory. It covers the costs of damages incurred to your car when you experience a crash or traffic accident. In addition to collisions with other vehicles, this coverage can also be applied if you collide with a signpost, fire hydrant, wall or other objects. If you opt for this type of insurance, you can select the deductible that works best for your budget. A deductible is the amount of money you are willing to pay out of pocket for damages before the insurance takes over. A higher deductible will result in a lower premium cost.
Comprehensive insurance will compensate you for damages caused by a whole range of different situations. These include natural disasters such as floods, hurricanes, and damages from wildlife. Theft and vandalism of your vehicle are covered by comprehensive insurance, as is fire damage and damage from falling objects. Depending on the insurance company and the area, hail damage can also be included in this coverage. The cost of this type of insurance can be influenced by where you usually park your vehicle. Those kept in a secure garage can be charged significantly less.
Collision and comprehensive insurance are almost always optional, whereas the law usually mandates liability and medical coverage. Choosing collision and comprehensive insurance is worthwhile if you value your vehicle. Often as part of a car loan or lease agreement, you will have to purchase collision and comprehensive insurance. This is a condition set out by the bank so that they do not lose money in the event that your vehicle is destroyed or stolen before you have finished paying for it.
Emergency Road Service Coverage
Towing and labor coverage, also known as emergency road service insurance, will cover the costs of emergency road assistance if your vehicle breaks down. Getting stuck by yourself on the highway is never fun. If your car suffers a mechanical breakdown, a flat tire or runs out of gas, you can call the tow truck without worrying about exorbitant costs. Getting help if your car is snowed in or after locking the keys in the car, are some other possible situations that can be covered by this type of insurance. It will include the immediate assistance and transportation of you and your vehicle to a mechanic, but it will not cover extensive mechanical repairs.
Mechanical Breakdown Insurance
Mechanical breakdown coverage is similar to the extended warranties offered by some car dealers. It will cover the cost of repairs to your vehicle for a range of different mechanical issues. Usually, maintenance work or repairs resulting from normal wear and tear are not covered. For example, new tires to replace your old, worn ones will not be covered by this insurance. It is only applied when there is a real mechanical malfunction. Every provider does not offer this type of insurance, so it’s best to speak to your car insurance company to find out if it’s available to you.
If you are currently leasing your car or paying off a car loan, you should consider gap insurance. In the case of your car being declared a total loss while you are still paying for it, this insurance will reimburse you the value of your vehicle at the time of the loss. The insurance company will use your comprehensive or collision coverage payout to cover the difference between what you still owe on the car and its current fair market value. This means you will never be stuck continuing to pay for a car that you no longer have.
Custom Parts and Equipment Coverage
For drivers that have invested in upgrades and extra features for their vehicles, custom parts and equipment coverage could be very worthwhile. The value of any after-market modifications is usually ignored by your insurance company when it comes time to reimburse you for your losses. To protect your specially installed engine parts, stereos, cosmetic alterations and custom lights or body work, you will need this specific insurance coverage.
These are all the main types of vehicle coverage options you are likely to encounter. Depending on your priorities and risk factors, it may make sense to invest in some of these types of insurance over others. If you live in an area with frequent natural disasters and freak weather, comprehensive insurance makes sense. If you often drive on isolated back roads, then emergency road service coverage may give you some peace of mind. If you have invested a lot into personalizing your vehicle, it may be worth it to take out custom parts and equipment insurance.
Now that you understand car insurance coverage options available to you, please do not hesitate to contact Affordable Insurance in Aurora for a personalized quote. We know how important it is to have your vehicle fully protected in the event of damages or a traffic accident. With the right insurance on your vehicle, you won’t be hit by unexpected repair costs or a long, inconvenient time without your car.