Smart Additions to Your Policy

A liability-only auto insurance policy will keep you in compliance with the law, but it won't provide an ideal level of financial protection. Consider including these optional coverages in your policy for added protection.

Rental Reimbursement

Rental reimbursement is an optional coverage that will pay for the cost of renting a car while your vehicle is repaired or replaced after a loss covered by your policy. Rental reimbursement usually will pay up to a specific dollar amount per day for a limited number of days. Adding this coverage to your policy will ensure that you have a way to get around while your car is repaired. Without this coverage, the cost of renting a car yourself could become prohibitive. Most auto insurers offer this coverage for a very small additional premium. During your auto insurance company comparisons, verify that the rental reimbursement coverage is offered and, if so, how much it will raise your rates.

Roadside Assistance

If you don't already belong to an auto club or have roadside assistance with your vehicle, you can usually add this protection to your auto insurance policy. In most cases, roadside assistance costs only a few dollars per month to include on your policy. Typical roadside assistance services include towing help, fuel delivery, and assistance with flat tires and other emergencies. Not all auto insurers offer roadside assistance, so if you're interested in this coverage, look for it when doing auto insurance company comparisons.

Medical Payments or Personal Injury Protection

This coverage is a wise addition to your auto insurance policy if you don't have health insurance or don't have enough health insurance. Medical payments will cover the medical expenses for you and all of your passengers regardless of fault in a covered accident. Even a brief hospital visit can cost thousands of dollars, so medical payments coverage is usually worth the additional premiums. Even those who have good health insurance might consider carrying medical payments coverage in order to cover their health insurance deductibles. For example, if you have a health insurance deductible of $2,500, you can elect to carry $5,000 of medical payments coverage or whatever minimum amount your insurer offers. The cost of medical payments coverage can vary significantly from insurer to insurer, so review the premiums for this coverage as you compare auto insurance companies.

Stereo System Coverage

If you've invested a significant amount of money in your car stereo and related equipment, you should consider adding stereo/sound system coverage to your policy. When you make auto insurance company comparisons, look for insurers that offer this optional protection. This coverage will reimburse you for the full value of your sound equipment in the event it is stolen or damaged. Without this additional coverage, a basic auto insurance policy may not cover the full cost of your stereo equipment.