Someone Steals Your Car
If someone steals your car, you’ll want the insurance company to replace it, but many people don’t get the necessary coverage: comprehensive insurance. This is a truly frustrating scenario, because you have no fault in the situation and no longer have your car.
Someone Hit You Who Doesn’t Have Car Insurance
If someone hits you, you want them to pay for the damages to your car and any injuries you incur. However, if someone doesn’t have any or enough insurance, you could be left suing them for damages that they may or may not be able to pay. This scenario is where you want to make sure that you have uninsured and underinsured motorist coverage.
Nearly 13 percent of drivers in the U.S. don’t have car insurance, even though most states require it.2 To protect yourself, you can opt for uninsured and underinsured motorist coverage. This optional coverage is less expensive than liability coverage and is a must if you have concerns about someone hitting your car who doesn’t have the right coverage in place.
For example, the difference in premiums for car insurance in Massachusetts between uninsured motorist coverage of $25,000/$50,000 and $100,000/$300,000 is about $10 per policy period, a negligible dollar amount that could end up saving you thousands.
You Get Hurt in an At-Fault Accident
When you hit another vehicle or object, there is no guarantee that you or your passengers will walk away from the accident without injuries. You will want medical payments or personal injury protection (available in no-fault insurance states) to pay for those injuries.
Many drivers make the mistake of skimping on medical coverage because they have health insurance already. What they don’t understand is that the health insurance company will require a certain amount the driver pays before it kicks in. This amount may be $1,000 or more, depending on the insurance. Having medical payments or personal injury protection will ensure that this money doesn’t come out of pocket.
You’re Stuck on the Side of the Road
If you don’t already have emergency roadside assistance through a third party, you want to get it with your insurance policy. For just a few dollars per policy period, you can get the help you need if you are stuck on the side of the road, such as a tire change, battery jump-start, or locksmith services.
Your Car Is at the Repair Shop, but You Still Need Wheels
When your car goes into the shop for a covered insurance claim, you probably still need a car to get around. This scenario is where rental car coverage comes into play, which pays for you to rent a car while yours is in the shop for repairs. Rental car coverage is an optional coverage that people often skimp on, even though it is just a few dollars per month. If you need a rental car after an auto accident, it will save you money.