Almost every state requires drivers to carry insurance on their vehicles, and driving without insurance can lead to serious consequences ranging from fines to suspension of your driver’s license. Because of this, most people have a car insurance policy. But did you know that many basic car insurance policies don’t cover nearly as much as you think they do?
There is a major difference between collision insurance, the basic insurance policy the majority of drivers carry, and comprehensive auto insurance. Collision insurance helps cover the cost of repairs to your vehicle, but only when the damage is sustained in a collision with another vehicle or object, such as the damage that comes if you hit another car on the highway or back your car into a post while parking. If the damage occurs in another way, collision insurance won’t cover it.
Comprehensive insurance covers damage to your vehicle caused in other ways. Without this kind of insurance, you won’t be covered if your car is damaged in a storm or fire, broken into, or if you hit an animal. This kind of policy is also the kind you’ll want if your vehicle is stolen,
Most insurance providers offer comprehensive insurance, but some consumers opt out to reduce the cost of their insurance. You may find that you are required to carry a comprehensive policy if you are leasing or financing your car or if you’re working for a ride-sharing service. If you have to hold a comprehensive policy or think the additional coverage it offers would be beneficial to you, you can always compare car insurance quotes to find a provider with a policy that fits your budget.
Most drivers can relate to the feeling of dread when they hear a particularly hard rock chip hit the windshield. Windshields are not always as durable as one would hope, and depending on how yours breaks, you may not be covered by your insurance policy.
If your windshield is broken in an accident, replacing it is usually covered by your collision policy. Some comprehensive policies cover windshield repair, but it may be a separate line item that you need to opt in to.
Rental Reimbursement Coverage
If you’ve been in an accident and your car is in the shop for repairs, you’ll need a new way to get around for a while. A rental reimbursement policy will pay for the cost of a rental car while yours is being repaired and can save you significant out-of-pocket expenses, especially if the repairs on your vehicle are extensive.
Rental reimbursement policies usually come with limitations for how much they’ll pay out per day or how many days they will cover a rental. Because rental reimbursement is a policy add-on, most insurers will offer different tiers of limitations at different price points, so you’ll have options to work with your budget.
Don’t let gaps in your car insurance surprise you when you needed coverage the most. Take time to review your current policies and see if they’re giving you everything you need.