What Is An Auto Insurance Rider and How Does It Help Coverage
It’s safe to say that Americans would rather save their money than overpay for their insurance company, which is why people are always trying to find new ways to save on auto insurance.
The common ways to save on your car insurance rates is to increase your deductible, get lower coverage limits, maintain a clean driving record, and complete a driver’s education or training course if offered. However, there is also certain coverage called an “Auto Insurance Rider” that you can have added to your auto insurance policy that will help increase coverage protection and decrease your yearly premium for insurance.
An auto insurance rider is an endorsement, change, or addendum adjusting your car insurance policy by actually deleting potentially unneeded or unlikely coverage. Not only does it save you thousands of dollars in the long run, but it can also provide extra protection for your family and automobiles. The following auto insurance riders are a few common ones that you should inquire about when you obtain car insurance quotes.
Types of Auto Insurance Riders
Uninsured/underinsured motorist coverage protects you if you have a car accident with another driver who is inadequately insured, which means they can have little or no insurance coverage to cover your claims. A “Family Protection Coverage” endorsement increases the coverage limits of your liability coverage if you or any one of your family members are injured or die in an accident caused by an under insured or uninsured driver. Learn more about the different types of car insurance coverage.
Also, the “Waiver of Depreciation” insurance rider guarantees that if you purchase a new vehicle, and attach this rider to the insurance policy, that in the event you have an accident and your new car is totaled after a predetermined time after purchase, no depreciation will be applied to your reimbursement amount. This means that you will essentially receive the full amount you paid for the car. Furthermore, if your car is only damaged, it entitles you to have your vehicle repaired with original manufacturer parts.
A “Loss of Use” rider allows you to request and use a rental vehicle if yours is damaged or must be replaced, according to the terms of your auto insurance policy. It also details that the insurance company will reimburse you for the expenses relating to the use of public transportation, such as taxis or buses.
Finally, possibly the most valuable insurance rider of all, “Accident Forgiveness” can be applied most successfully to drivers who have a spotless driving record history. If you have not had any at-fault accidents in the previous 6 years, you are eligible to add this additional rider. Accident forgiveness “forgives’ your first at-fault accident, should you have one. This means that it does not raise your car insurance rates, nor affect future quotes.
This is amazing considering each at-fault accident in your past remains on your driving record for several years and could significantly increase your premiums. With this endorsement in place, that first accident is wiped away, and not used against you. However, if an at-fault accident does occur, this endorsement is used up, and cannot be added back on for another six years.
Car Insurance Quotes – Find Cheaper Rates
Whenever you get car insurance quotes, be sure to get the figures for your policy, but then ask your insurance agent what riders may pertain to you and how they can be beneficial to your insurance plan. They can save you a lot of money, while providing extra coverage and protection at the same time.
Keep in mind that some riders can usually only be used once, for example the “Accident Forgiveness”, and are used and exhausted after you draw a claim against your auto insurance rider.
By entering your 5-digit zip code and comparing car insurance quotes online, MyCarInsuranceRates.com can help you find cheap car insurance, so begin a free car insurance quote now.
