What Else Does Your Auto Insurance Cover?

Posted on: 28 October 2020

When you buy auto insurance, you probably buy it in case of an accident or your car getting stolen. However, there are many other situations that your car insurance can cover if you choose the right options.

Roadside Assistance

Your parents may have been members of an automobile club that would send someone out if they ever broke down on the side of the road. Those programs still exist, but your auto insurance may offer what's usually a much cheaper option. You can get roadside assistance bundled right into your auto insurance. If you break down or lock yourself out of your car, call your insurance company, and you're covered.

Rental Cars

Your car insurance usually follows you to other cars you use temporarily, and that includes rental cars. If you get into an accident in a rental, you file a claim the same way you would with your own car. There are a few catches, though.

Your car insurance won't cover just any type of rental. Moving trucks are almost always out. There are also restrictions on passenger cars that vary based on your policy. It may only cover a similar type of car to what you have or exclude expensive cars like the sports convertible you want to rent on vacation. Always check your policy before assuming a rental is covered.

Stolen Property

If someone breaks into your car, your auto insurance may be able to help. Many auto insurance policies include a limited amount of personal property coverage that protects you from theft or damage in accidents. Like your home insurance, there are usually limits, and the limits on auto insurance policies are usually only a few hundred or thousand dollars. You'll probably be covered for the things that most people leave in their car, but don't store expensive electronics or other valuables in your car unless you buy extra coverage.

Loan Payoffs

With people using longer car loans, there's a risk of being underwater on your car if you get into an accident. You still have to repay your loan even if you don't still have your car since you still borrowed money to buy the car. If you get gap coverage or similar coverage, your auto insurance company will pay the difference between what you owe and what your car is worth so you don't have to come up with that money on your own.

To learn more about what auto insurance covers and the available coverage options, contact a local auto insurance company today.