offered by dealerships, but this insurance tends to be cheaper than the warranties. Keep in mind that not all insurance companies offer this optional coverage. Towing and labor coverage covers the cost of towing your car to the auto shop. If youbuyor lease a car fromadealership, it’s possible theremight be towing coveragebenefit, at least for a certainamount of time. Auto clubs such asAAAalso offer towing, aswell asmany other benefits, so consider looking into those before deciding on adding towing and labor to your insurance policy.
Gap insurance can provide peace of mind if you have a lease or loan. Sometimes cars get totaled in accidents and their fair market value is less than what you owe. This insurance allows you to get the money your car was worth so you won’t owe anything. I always put this on the policy, unless requested otherwise. Loan/Lease payments coverage is similar to gap insurance. However, it’s set at a certain percentage of the car’s estimated value. If you love your car and don’t want
PRO TIP: TAKE A
TEMPORARY DOWNGRADE If you have rental r e i mb u r s eme n t coverage, ask for a car that costs less than your daily limit. This means it’ll take longer to reach your per-accident limit, so you’ll be less likely to have to pay anything out-of-pocket. .
to give it up, you might want to consider auto replacement coverage . It pays for repairs even if the repairs cost more than the car is worth. This is usually an option that comes with collision and comprehensive insurance and tends to cost around 10% of the total of the two. If you’ve added parts to a purchased car, you might want
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