CHAPTER 3
OTHER COVERAGE OPTIONS The five main types of coverage I discussed in the previous chapter are certainly important —and often required. However, even if you have them all, you might still be on the hook for paying out-of-pocket for certain things. In order to minimize the amount you might have to pay directly, you should know about other options insurance companies often provide. While the following insurance isn’t necessarily required, I do sometimes recommend them to my clients as a way to protect their cars and their wallets. After talking with you about your particular situation, I’ll recommend which of these options (if any) would be advantageous andwhich you’re better off skipping. If you have comprehensive insurance, theft is probably already covered. But if you’ve decided against comprehensive, theft insurance is definitely something to consider. Keep in mind that if you’ve customized your car, those customizations will be covered only if you declare it and pay a bitmore on your premium. Umbrella insurance is like a second round of coverage that’s used if you exceedyourmain liability insurance limits. It’s recommended if you have assets that are over $300,000. It tends to work with a combinationof liability insurance, includingauto, homeowners, and boat insurance. Some companies require you to get homeowners and auto insurance with them to get the umbrella policy. Mechanical breakdown insurance covers exactly what the name implies. Essentially, it’s similar to extended warranties
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