Whether you live downtown or in the suburbs of a metropolitan city, you need some means of transportation to move from one place to another. Usually, people rely on their cars to go to work, travel, and run personal errands, making the vehicle one of their most important assets. As such, it is their main responsibility to take proper care of it so they can use it for years to come.
Besides performing regular maintenance, all drivers are also required by law to obtain car insurance. This is a type of protection that provides individuals with financial and legal coverage for damages and injuries they may sustain in a car accident.
In general, there are several types of auto insurance people can choose from. While some of them are mandatory in most countries in the world, others are optional and can be added to the original policy for greater protection.
In this post, we outline the must-haves and should-haves to consider adding when buying car insurance.
Must-haves on your auto insurance
Liability insurance
Liability insurance is undoubtedly a must-have you should include in your auto insurance policy plan. It comes in two forms, bodily injury liability, and property damage liability, and provides you with coverage for any injuries and damages other drivers, passengers, and vehicles sustain if you are at fault in an accident.
Because the minimum required coverage may not be enough to cover all costs, it is advised that you opt for a higher-paying liability policy. For more help, consider consulting with an insurance broker to help you create a comprehensive plan that suits your needs and budget.
For instance, if you live in Oakville, Canada, shop around for multiple quotes to find the best auto insurance in Oakville ON, and provide yourself with the right protection you need.
Uninsured motorist coverage
The uninsured motorist coverage is another must-have you definitely need to add to your insurance policy. Its main purpose is to provide you with financial protection if you get into a car accident and are not at fault, but the other driver is underinsured or doesn’t have coverage at all. This means that you won’t be paying out of pocket and all medical bills, repair costs, and other expenses will be covered by your insurance plan even if the other party isn’t covered adequately.
One great thing about this type of coverage must-have is that it is generally cheaper than the standard bodily injury and property damage insurance. However, the prices for it vary by country and province, so make sure you do your research before you make any purchases.
Should-haves on your auto insurance
Although there are several optional types of auto insurance coverage you can include in your basic insurance policy, there are additional covers that are certainly worth paying for. These coverages are considered add-ons and can come in handy in various situations.
Some of the most common add-ons drivers usually obtain include:
- Zero depreciation cover;
- Roadside assistance cover;
- Gap insurance;
- No-claim bonus protection cover;
- Consumable cover;
- Engine protection cover;
- Return to invoice cover;
Zero depreciation cover
The zero depreciation cover, also known as bumper-to-bumper insurance, is probably the most purchased add-on among drivers. Its main purpose is to provide you with protection against all physical damages that have been caused to your vehicle without factoring in the element of depreciation. It plays a huge role during claim settlement calculations and reimbursements when you are looking to save lots of money on car replacement costs following an accident.
Gap insurance
Another useful add-on you should include in your auto insurance policy is gap insurance. This coverage can be very useful to those drivers who have a car loan and need financial protection in case their vehicle is stolen or deemed a total loss. It basically covers the difference between what you own and the value of your car.
However, there is one thing about gap insurance is that you must obtain collision and comprehensive coverage in order to be able to qualify for it.
Final thoughts
Although there are several mandatory types of auto insurance every driver must obtain in most countries in the world, there are others that can be purchased as add-ons to provide greater protection. Depending on your needs and budget, you can choose from a variety of additional covers to add to your original insurance policy and stay fully protected in the event of a car accident.
For more information, refer to our post and read about the must-haves and should-haves you need to include in your auto insurance policy.
