Optional Insurance Coverage: It's Your Choice

All states specify the minimum amount and type of insurance coverage that all motorists must maintain in order to remain eligible to drive. However, these state minimums are often well below what someone would need in the event of a serious accident in which they were at fault, were injured severely, or suffered injury or property loss in an accident with an uninsured motorist. Every driver should carefully consider the amount of auto insurance coverage that they carry and decide if the minimum required by the state is enough to mitigate the risks that they face on the road.

All states require that motorists carry some form of liability insurance, which covers injury and damage done to others during accidents in which the insured is at fault. Liability insurance does not cover the costs of repairs to the insured's automobile from the same accident. For this type of coverage, you will need to look into purchasing collision insurance.

For damages that are caused by events not directly related to an automobile accident or other road based causes (occasionally referred to as "acts of God" in insurance company jargon), the car owner should consider purchasing comprehensive auto insurance coverage. Comprehensive auto insurance coverage provides protection for random evens such as hailstorms, vandalism, water damage, and other occurrences. Comprehensive auto insurance is not a blanket catch all, however. The insured should carefully read the fine print of the auto insurance coverage policy to determine precisely what events are and are not covered by their comprehensive auto insurance coverage.

Automobile insurance endorsements are policy addenda that provide extra coverage for certain well defined events. For example, many people who travel frequently elect to choose daily rental insurance coverage. This coverage, as the name implies, provides auto insurance coverage for a rental vehicle when driven by the insured. When someone has daily rental insurance they can safely decline the overpriced supplemental renters insurance that car rental companies provide. Emergency roadside assistance is another automobile insurance endorsement that provides peace of mind to frequent travelers. Emergency roadside assistance coverage provides a predetermined number of on the road service events such as towing, emergency gas assistance, locksmith services, and other services that travelers may need on occasion. Auto glass insurance protects against damage done to plate or side panel glass that may not be covered by a normal insurance policy. Some companies offer auto towing insurance, which is separate from roadside assistance auto insurance coverage.

These optional insurance coverage plans are not required by any state. However, many drivers choose to add them for the peace of mind that they get by knowing that most of the more unfortunate events on the road are covered by their policy. If you decide to add one or more optional coverages, be sure to determine what effect they will have on your total car insurance rate before signing on the dotted line.