What are some of the optional auto insurance coverages I can buy?
There are several types of coverage that you can choose to buy in addition to the required no-fault insurance. Some of the most common types of optional insurance are described below:
Collision and Comprehensive Insurance
Your no-fault insurance DOES NOT pay for repairs to your car if it is damaged in an accident. If your car is properly parked and hit by another car, the other driver’s no-fault coverage will pay for the damage to your car. Except for this one situation, the only kinds of auto insurance that will pay for repairs to your car are collision and comprehensive coverage.
- Collision coverage pays for repairs to your car when it is damaged in a crash. There are three basic kinds of collision insurance to choose from: limited, standard and broad form. The Three Types of Collision Coverage
- Comprehensive insurance pays for your car if it is stolen or for repairs if it is hit by a falling object, collides with an animal, or is damaged in a fire, flood or by vandals.
If you have an older car, you may not want collision and comprehensive coverage. If your car is financed, the company that loans you the money may require that you buy collision and comprehensive coverage.
Limited Property Damage Liability Insurance - “Mini-Tort”
Under “mini-tort,” if you are 50% or more at fault in an accident, and damages to the other driver’s car are not completely covered by his or her insurance, you may be sued and may have to pay up to $1,000 in damages. This also means that you may sue the other driver for damages to your car which are not covered by your insurance if the other driver is 50% or more at fault. Insurance companies usually offer this coverage as an optional coverage which you may purchase for an extra cost. Mini-Tort: An Exception to "No-Fault"
Towing and Rental Car Coverage
Towing and Rental Car Coverage is available from most insurance companies and generally covers or reimburses the cost of towing and/or a rental car for covered events (accident, breakdown, flat tire, etc.). The cost is usually small in relation to the total policy premium. Alternatively, many insurance agencies offer memberships into clubs that offer these types of benefits to their members.
Uninsured and Underinsured Motorists Coverage
These coverages will pay if an uninsured or underinsured motorist seriously injures you or a member of your household and you are awarded a settlement from the at-fault driver.