Car Insurance 

 Optional and Special Coverage

Another way to save money on car insurance is to avoid buying unnecessary options. Consider if you already have duplicate protection from other sources. There are many options, but here are the more prominent ones. If you believe you have adequate personal property, health, and life insurance policies, you could reject any options related to these risk categories.     Example- if you already have a large life insurance policy, do you need additional life insurance from your auto insurance policy?

Rental Reimbursement

For this the insurer would pay a specified amount per day, for a specified number of days, towards the renting of a car while yours is being repaired after an accident. Reimbursement is currently up to $35 a day. If you own more than one vehicle or if alternate transportation means are available (company car, local mass transit, or carpooling), this coverage may not be necessary.

Towing and Labor Coverage  

The company pays the cost of towing your car to a repair shop and pays for any immediate labor involved.     Perhaps you are a member of an auto club; or other group that already provides this service-then you would need this coverage? Read the fine print to understand the limits of the towing arrangement and exactly what labor costs are reimbursable.  

Special Insurance Situations       

Rental Car Coverage

Before renting a car, see if your company provides coverage. Coverage usually extends to any automobile you temporarily drive, but check to make sure. Your car insurance may not cover renting classic automobiles or other expensive models.

Also make sure you have adequate coverage for the state where you are renting, since mandatory coverage amounts can vary from state to state. If you damage a rental vehicle, the rental company can charge you for the rental revenue they lose while repairing the vehicle. Find out if your insurer provides this type of coverage. You can also check with your credit card company to see if your card covers the collision damage on a rental car when you pay with their card. If it does, then you need not carry rental car insurance if you always rent with that credit card. When in doubt; purchase rental car coverage. Although it may seem expensive, the insurance could protect you from undue financial hardship. You are buying peace of mind which is well worth the money you spend.

Leased Automobile Coverage 

    Leasing an automobile is becoming a popular alternative to buying. Insurance coverage for your leased vehicle is similar to insurance for a vehicle you own, but there are two significant differences.

1 - insurance requirements by the leasing company are often higher than the state minimums. Thus, if you lease a vehicle, you may be required to carry more insurance than you would otherwise. You need to consider these added costs when evaluating a car leasing option.

2 - if your leased vehicle is stolen or totaled, most leasing companies consider this an early contract termination. You will then generally owe the leasing company more than your insurance company allows, due to depreciation of the leased vehicle. The difference between what you owe and what your regular insurance company will pay needs to be covered by “gap” insurance or total loss protection. Some leases include gap insurance in the cost of the payments. Others do not, and you will need to buy separate coverage or potentially face a large financial loss if something happens to your leased automobile.