Classic Car Insurance
While some cars depreciate as they age, others are modified or restored which can appreciate the value. Most standard insurance carriers do not differentiate between the two. Classic car insurance allows customers to insure their car on an appraised value and not actual cash value to ensure they are getting what their car is worth if the car is totaled.
You should consider purchasing classic car insurance if your vehicle is between 10-50 years old, considered to be collectible or vintage, and in good condition. The definition of a classic car may vary by state, so it’s important to check local laws to confirm your car meets those requirements.
Ride-Sharing Coverage
Most insurance companies specifically exclude coverage for ride-sharing. So if you drive for Uber or Lyft to make some extra cash, you could be paying out of pocket in an accident. Fortunately, more companies are beginning to offer ride-sharing coverage, which would pay for damages that occur while you’re on the clock.
Ride-share coverage should be purchased by anyone who drives for a ride-sharing company. While the company itself offers limited coverage, adding a ride-sharing endorsement to your auto policy significantly broadens your coverage by eliminating potential gaps between the company-provided policy and your own.
Towing Coverage
Although car insurance is not intended to be used for wear and tear scenarios, many companies offer towing coverage to help with vehicle breakdowns. Typically, a limit is chosen, such as $50 per disablement. When you need a tow, you call a towing company and submit your receipts to your insurance company and you will be reimbursed up to that amount.
Towing coverage is usually inexpensive and a good addition to your policy, especially if you have an older car that is prone to breakdowns. Just note that towing claims do count against your policy and too many can cause a company to cancel or non-renew. So if you anticipate needing to use this coverage often, you might want to obtain the coverage elsewhere, such as an auto club.
New Car Replacement Coverage
Because insurance companies settle claims on an actual cash value basis, you may think you’re out of luck if you buy a brand-new car. This is not the case if you add a replacement coverage endorsement onto your policy. New car replacement coverage updates the loss settlement on your vehicle to replacement cost, where depreciation is not considered.
This coverage is not offered by all insurance companies and can be costly to add by the companies who do. New car replacement coverage should be purchased if you have a high-value car and want to ensure it is replaced without depreciation.
Rental Reimbursement Insurance
If you are involved in an accident and you are unable to use your car, or if you need alternative transportation while the car is being repaired, you’ll need rental reimbursement coverage. Companies offer per day/per limit options, such as $30/$900. This means that the company would pay $30 a day, up to a $900 limit for a rental car.
It’s important to note that this coverage is most commonly used when you are at fault for an accident or if you are involved in a hit-and-run. If someone hits you and they are determined to be the responsible party, their insurance company will typically pay for your rental car. But rental reimbursement is an important coverage to include on your policy if you don’t have access to other cars and need one if your car is not drivable because of an accident.
Emergency Roadside Assistance
Some insurance companies offer emergency roadside assistance as optional coverage to their insureds. This coverage pays for roadside emergencies such as towing, flat tires, tire changes, and delivery of gas. It’s similar to having a membership with an auto club, but generally less expensive.
Similar to towing coverage, each incident counts as a claim made against your auto policy. So if your car is older and you anticipate having to use this service often, you may want to consider a different option. On the other hand, if you would like this service for emergencies only and don’t plan on using it frequently, it may be beneficial to add.
SR-22 Insurance
Drivers considered high-risk or ones who have had major violations, such as a DUI may be required by their state to carry SR-22 insurance. An SR-22 is proof of an individual’s financial responsibility. They will be notified if your insurance policy cancels, lapses, or remains active. Think of it like the state’s way of checking up on you!
The SR-22 may make it more difficult for you to find an insurance carrier to insure you, and the ones that do will charge you more for your policy than they would otherwise. But for the drivers that are required to carry an SR-22, you won’t be able to drive without it and it’s necessary to purchase.
Mechanical Breakdown Coverage
Car insurance policies don’t usually provide coverage for things such as mechanical breakdowns or other disablements that aren’t related to a certain covered event, such as an accident. However, some companies do offer mechanical breakdown coverage which would pay for some of these disablements. Similar to a car warranty, it would cover mechanical or electrical failure.
The companies that offer this coverage will generally have some guidelines that your car needs to meet. For example, cars older than a certain age and over a specified mileage may not be eligible. If your car is prone to breakdowns and your vehicle is eligible, you may want to purchase this coverage.
Commercial Auto Insurance
A personal auto policy is what a consumer typically buys for their personal vehicle. But if you use your car for any sort of business activity, you will want to purchase a commercial auto policy. Commercial auto policies provide coverage for cars that are used for business.
While both types of policies cover bodily injury and property damage caused to another person or object, commercial auto policies also provide coverage for employees and offer higher liability limits. This type of policy is best suited for those that drive certain types of cars, such as tow trucks, or taxis, cars owned by a business entity, and used for business.
Non-Owner Car Insurance
Insurance typically follows the car an individual happens to be driving. But what if you don’t own a car? For those that don’t own a car but may have one available to them, a non-owner car insurance policy is ideal. If you are utilizing car-sharing services, loaning cars from your family and friends, or renting cars, this policy is for you.
A non-owner car insurance policy covers you as a driver, regardless of what car you drive. Similar to a standard auto policy, coverage is provided for bodily injury or property damage you cause.