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 are often offered, but I rarely recommend it. It covers the cost of towing your car to the auto shop. However, towing costs an average of $25-$75, so if you can afford to pay that, consider skipping this and saving $10-$15 on your premium. Also, if you buy or lease a car from a dealership, it’s possible there might be a towing coverage benefit, at least for a certain amount of time. Auto clubs such as AAA also offer towing as well as many 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. 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 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 to consider custom parts and equipment coverage. This covers things like electronics, engine parts, and custom aesthetic features such as a spoiler.
Rental reimbursement coverage is an option that pays for a rental
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