When it comes to purchasing car insurance, going for the cheapest rate can be tempting in order to save money. After all, rates are already high enough as it is.
But you might be surprised what basic things aren’t always included in a base rate. As per Canadian laws, the most basic plans generally only cover the damage that you’ve caused to another person or their property involved in a collision. Even if you opt for more vehicle coverage, there are some important add-ons that you could be missing.
This article will go through some add-ons that you might want to consider when purchasing an auto insurance plan.
This might be one of the most important add-ons if you’re completely dependent on your car every day. A rental car add-on means that your insurer will pay for a rental car – often a similar model to your own vehicle – in the case that your vehicle needs to be in the shop for an extended period while undergoing repairs after an accident.
If you don’t have this add-on, you’ll likely be scrambling to find a cheap rental car or other transportation solutions when a serious collision happens. Chances are, if you’re in a serious collision you’ll already have a lot to be worried about. That’s why rental car add-ons offer peace of mind and are a valuable add-on.
Emergency Roadside Assistance
This is another add-on that you might want to consider, but it’s also important to look into whether it’s something you can get through other avenues.
Emergency roadside assistance will cover everything from the cost of a small roadside repair to towing fees if your car completely breaks down on the road. It’s particularly comforting if you travel alone or with children often.
However, you might already be covered for roadside assistance if you have a membership with a group like CAA. Some car manufacturers also offer their own roadside assistance programs. It’s a good idea to look into all your options and see which one is cost-effective.
Collision forgiveness can be a good way to escape with a clean slate after some bad luck with an accident. With this add-on, an insurer will generally forgive your first at fault accident and it won’t increase your premium.
It’s important to consider whether you might change your insurance companies in the future though. If you get into an accident, your original insurer will forgive it, but that crash will stay on your record. That means that if you go to another insurer years later, they probably will not forgive the accident and your rates could rise significantly.
Waiver of Depreciation
This can be a good add-on if you’re leasing your vehicle, or if you’re buying a brand-new vehicle.
A waiver of depreciation coverage add-on will protect you from some of the immediate loss in value of a new car. If you have a crash that totals a relatively new car, this add-on will make sure you get the most money back from your insurer to purchase new car.
In the case of a leased car, you may be charged more by the dealership for an accident than the amount that you’re given by the insurer. A Waiver of Depreciation add-on may also cover the kind of expenses that you might have to pay out of pocket because of dealership charges.
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