When shopping for auto insurance, there are plenty of options to consider. Craig Wiseman breaks down these options and their value in this video.
Here's a full transcript of the video.
Hi, my name is Craig Wiseman with ISU - Wiseman Insurance, located in Provo, Utah. In this video, I'd like to talk about additional coverages that you can purchase in addition to the regular liability and physical damage coverages on your personal auto policy.
One of the coverages that you'll want to consider is Rental Reimbursement. Rental Reimbursement will pay for a rental vehicle if your vehicle is involved in an accident or in a comprehensive claim where your vehicle is not drivable, or needs to be in the shop to be repaired. And that will pay for a rental vehicle for you up to the limit that you choose to use while your vehicle is being repaired. Typically, that's limited to about 30 days.
The next coverage that you might want to consider is OEM parts. That stands for Original Equipment Manufacturer parts. When you have an auto accident that causes damage to your vehicle, the insurance company is going to want to use, typically, whatever are the least expensive parts available. And if those happen to be aftermarket parts, that's what they'll be using. Those are a lot better than they used to be. Aftermarket parts used to be pretty iffy on the quality side, but they have gotten very, very good. A lot of people will want coverage for their new 2020 vehicle that matches exactly the parts that they have on those vehicles and those manufactured by the vehicle's manufacturer. So, you can pay a little additional premium in order to get that coverage.
Some insurance companies will offer what's called a New Car Replacement. And they don't offer it forever, but if you purchase a vehicle that is in the last couple of model years, you can add that coverage on. And if you have a total loss in your vehicle, they'll actually buy you a new car. Not every company has that, but that's something that you can certainly look into.
Another pretty important coverage, especially if you have a loan or a lease on a new vehicle, is Loan or Lease Gap Coverage. And that protects you from the situation where you buy a brand new vehicle, and you drive it off the lot. Let's say you buy a $40,000 vehicle and you drive it off the lot. We all know that that depreciates a huge amount the day you drive it off the lot. And if you have a total accident in that vehicle within the first few months, and you haven't made too many payments on your loan, you could be upside down on that vehicle loan. The loan or lease gap coverage will protect you to pay off that loan even though your car has essentially depreciated lower than the loan value of the vehicle at the time of the accident. The same thing applies with a lease, if you happen to lease vehicles, a lot of times the vehicle is gonna be worth less than what you still owe on the lease payments, and that protects you in that situation.
Another coverage that some companies not all offer is Accident and Minor Violation Forgiveness coverage. And that is just exactly that —— they'll forgive your first at-fault accident or they'll forgive your first speeding ticket or first moving violation you have as long as is not a major violation. And that's a coverage that a lot of people do like to purchase nowadays. It's only been available for the last five or ten years, but a lot of people like to have that.
The other coverages that are available are Towing and Labor, which is gonna cover you if your vehicle becomes disabled. A lot of people carry like an auto club or a AAA or something like that. So, that may not be necessary to put on your insurance policy, but it is available if you'd like to purchase it. Another coverage that many insurance companies will offer is Full Glass Coverage. So if you do have a broken windshield, they'll actually pay for the cost of replacing that windshield without a deductible. Not every company has that, but it is available with certain companies. So check with your insurance company.
If we can be of any assistance, my name is Craig Wiseman, ISU-Wiseman Insurance. (801) 377-3060, give me a call. Thank you.
(Transcript Courtesy: Speechpad)
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