Liability, accident benefits, collision and comprehensive insurance coverages make up the core of a typical auto insurance policy. However, your options don’t end there! In addition to the main types of coverage, there are also several add-ons available to increase your automobile coverage and provide peace of mind.
Loss of Use
Imagine you’ve been in an accident and now your vehicle needs repairs. The mechanic estimates it will take two weeks to order the parts and an additional week to do the repair. You’re suddenly without transportation for three weeks. How will you get to work? How will your children get to school?
Loss of use coverage, also called rental reimbursement or car rental coverage, pays for the cost of alternative transportation while your vehicle is being repaired. Some policies cover just the cost of a rental car. Others will also reimburse you for taxi fees. Loss of use coverage does not cost much to add to your policy, but it provides a valuable service—especially if you don’t work close to home or have the ability to provide your own alternative transportation.
Waiver of Depreciation
According to Edmunds.com, a new car loses 9 per cent of its value the moment it is driven off of the lot. Within a year, the car is valued at only 81 per cent of the purchase price.
Depreciation can impact your pocketbook in more than one way. Imagine that you get into a collision that totals your car three years after you purchase it. Insurance will reimburse you for the current value of the car, not the purchase price—which could be as little as 58 per cent of its original value.
Waiver of depreciation coverage is meant to protect you from losses like this. It can be applied to newer cars, typically fewer than 3 years old. It ensures that no depreciation will be applied to the car’s value if it is damaged in an accident.
Uninsured Motor Vehicle Coverage
As if getting into an accident isn’t upsetting enough, what happens when you find out that the driver who pulled out in front of you has no insurance? Or what if you are involved in a hit-and-run accident? While it’s legally required that drivers maintain auto insurance and stay on the scene of an accident, the reality is that some drivers just don’t follow the law.
Uninsured motor vehicle coverage pays for damages when you are hit by a driver who does not have coverage or who flees the scene.
Underinsured Motor Vehicle Coverage
Liability coverage limits are regulated provincially. Provincial governments determine the required value by balancing the cost to drivers with the amount needed to provide for a typical accident. Sometimes, minimum liability limits are not enough to cover the entire cost of a collision.
Underinsured motor vehicle coverage pays for damages when you are hit by a driver who has low limits of liability coverage.
Emergency Road Service
You’re travelling on a deserted road when all of a sudden, your vehicle swerves and you begin to lose control. You’ve run over debris that has punctured two of your tires. With only one spare tire in the trunk and no passing drivers to help, this could be a costly incident.
If you’ve elected to purchase emergency road service coverage, you can pull out your insurance card and call for help. Emergency road service coverage will reimburse you for the cost of towing, a jump, tire changing, a locksmith or any other assistance you need when stuck on the road.
Your insurance coverage should be based on your specific risks and assets. Action Insurance Group understands automobile policy coverage requirements as well as the benefit of add-ons and will work with you to design a plan that provides the best coverage possible. Give us a call today at 403 457-1000