Even if you come out of a wreck safe and sound, the weeks following an
auto accident can be full of challenges. While they are certainly not
mandatory, several types of optional coverage can make life easier if
your car is disabled or headed for the repair shop.
Towing
and labor coverage provides emergency road service and pays for
towing charges. This coverage is not limited just to accidents, but can be
used any time your car breaks down. Labor such as a tire change or battery
jump-start performed at the site of a disabled vehicle will be covered, but
not the later repair work done in a service station.
Rental reimbursement pays a set amount per day for
transportation expenses,
or car rental, while your car is being repaired due to a covered loss. A
limit such as \$15 per day and \$450 total is common, but can often be
increased for an additional premium.
Loan/lease
gap insurance covers the difference between a newer car's actual
cash value and the amount still owed on a loan or lease. Many drivers are
stunned to find that the amount an insurer agrees to pay for their totaled
car is much less than what they still owe. The coverage must be elected at
the time that a new car is purchased and initially insured, and may not be
added later. Car lease contracts often include gap insurance, but if you
finance your vehicle through a bank you may have to ask insurers if they
offer gap insurance.
If
the deductible itself has you on the ropes, then just imagine the extra
costs associated with towing your vehicle many miles and renting a car while
repairs are made. And what could be worse than actually making payments on a
heap of worthless metal? These bonus coverage options could save you money
and frustration if your vehicle ends up damaged and out of
service.
© 2003 Emerald Publications
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