Insurance considerations
Most drivers understand the basics of car insurance. Generally, it means choosing among the categories of liability (required), collision and comprehensive (optional), and determining the level of coverage and deductibles based on your vehicle, needs and wants.
But it’s worth looking further at coverage details. To combat inflation, new exclusions are regularly a result of policy evolution. For example, a given policy may now exclude damage from acts of terrorism. As a result, on such a policy, coverage for that sort of loss is an option and must be purchased separately.
Another item that may not appear on every auto policy is rental car insurance. Some policies have it, and some do not. Some policies that once had it may have subsequently made it optional to keep rates at bay; it is common for coverage to “disappear” for this reason. Those wishing to reinstate or continue such coverages must then purchase them separately.
Because of extensive policy fine print, it is advisable to confer with your agent on an annual basis to audit the state of your coverage. That is the time to ask questions about your insurance plan to determine if you are covered for driving rental cars, if the loss of your vehicle allows use of a rental car during repair, how much your new car will be depreciated in the case of total loss, amid countless other risk/remedy considerations.
There is even available coverage to cover costs associated with speeding tickets! If your vehicle is equipped with custom equipment such as stereos and subwoofers, custom wheels, or similar non-factory-installed items, you may want to seek extended coverage for the value of those items.
When driving a car that has a value greater than “book” due to classic status, special paint, or other factors, there are coverages available that are based on a pre-agreed or “stated value.”
Towing, and even roadside help like locksmith services and battery jump-starts can be part of your auto policy at extra cost if desired.
If you are leasing or purchasing your car or truck via an installment contract, you have the option of buying gap insurance for unexpected loss if your vehicle is totaled. This coverage will pay the difference between the actual cash value of the vehicle and the unpaid balance of the loan or lease at the time of loss.
Where you plan to drive is another consideration. To her surprise, driver T.H.’s agent recently informed her that her U.S. auto coverage is not applicable in Canada. This is another example of disappearing coverage. Where most domestic policies once included Canadian coverage, and many still do, some now evidently do not.
Before heading to Canada, Mexico, or anywhere else out-of-country, check with your agent to determine your policy details. Even if you are covered in Canada, it will be advantageous to obtain a special proof-of-insurance card from your agent. Since insurance is mandatory in Canada, proper proof of compliance will ensure avoidance of hefty fines upon entry. The Canadian government will not accept emailed or faxed cards, so making the agent request a couple weeks in advance of your trip is advised to accommodate mailing time.
Those considerations above and many others are at play when seeking and “dialing in” your individual coverage. Unless you are an insurance expert and adept at reading “legalese,” seek the help of an agent to help you wade through the options.
Readers may contact Bill Love via e-mail at precisiondriving@spokesman.com.
