If you own a car, you likely have car insurance. But did you know that there are different types of car insurance? One type of car insurance is called supplemental car insurance. Supplemental car insurance, also known as add-on insurance, provides extra coverage beyond what your standard car insurance policy covers.
What Does Supplemental Car Insurance Cover?
Supplemental car insurance covers a variety of situations that your standard car insurance policy may not cover. For example, if you get into an accident and your car is totaled, your standard car insurance policy may only cover the actual cash value of the car, which may not be enough to cover the amount you owe on your car loan. Supplemental car insurance can provide additional coverage to pay off the remaining balance of your car loan.
Other situations that supplemental car insurance may cover include:
- Rental car coverage
- Towing and roadside assistance
- Gap insurance
- Uninsured and underinsured motorist coverage
- Personal injury protection
- Accidental death and dismemberment
How Does Supplemental Car Insurance Work?
Supplemental car insurance is typically purchased as an add-on to your standard car insurance policy. You can usually choose which types of supplemental coverage you want to add on to your policy, and you will pay an additional premium for each type of coverage.
When you file a claim for an incident that is covered by your supplemental car insurance policy, you will need to provide proof of the incident and any expenses you incurred as a result. Your insurance company will then review your claim and determine how much they will pay out based on the terms of your policy.
Is Supplemental Car Insurance Worth It?
Whether or not supplemental car insurance is worth it depends on your individual situation. If you have a newer car and owe a lot of money on your car loan, gap insurance may be a good investment to ensure that you are not left with a large debt if your car is totaled. If you frequently rent cars, rental car coverage may be a good option to avoid paying high rental car insurance fees.
It’s important to carefully consider your individual needs and budget when deciding whether or not to purchase supplemental car insurance. You may also want to consult with an insurance agent to help you determine which types of supplemental coverage are right for you.
Supplemental car insurance provides additional coverage beyond what your standard car insurance policy covers. It can be a good investment depending on your individual situation and budget. Consider your needs carefully and consult with an insurance agent to determine which types of supplemental coverage are right for you.