Additional Car Insurance When You Want More Than Basic Coverage

While you may want to save money by purchasing cheap car insurance, it's also important that you are protected. If you have plenty of assets, you need to make sure that you have enough liability coverage in the event that you cause serious personal injury to another person. Each state has minimum requirements for car insurance, and this minimum coverage doesn't usually offer much. Take the time to look over your options, and don't be afraid to spend a little money now for coverage so that you don't have to spend large sums later.

Gap Insurance When You Own a New Car

If you own an old car, you won't need gap insurance. This is coverage that will pay you the difference between what your car is valued at and what you owe on your vehicle if you total your vehicle. In the case of a new car, this number can be in the thousands. When you need to replace your car, you won't have enough money if you only get paid what your car is valuated at. This is useful insurance if you recently purchased a car that is worth a substantial amount of money.

Towing and Labor Coverage

When your car breaks while you're on the road, getting your car repaired can get expensive quickly. You can add insurance coverage to your policy that will pay for towing and labor costs should your car become disabled. Many people find that this coverage is cheap enough that it is worth the cost when you have an older vehicle that is likely to break down.

Liability, Comprehensive, and Collision Coverage

In many cases, your car insurance will have some liability and collision coverage, but the limits can be very low. You can increase the amount of your liability coverage, providing a higher limit if you are found liable for another person's injuries or property damage. Collision coverage pays for your vehicle to be repaired or replaced, but any deductible is taken out first. The cheaper your policy, the higher your collision deductible will be. With comprehensive coverage, you will have protection if your car is stolen, damaged by inclement weather, or otherwise ruined by anything other than a car accident.

As you look for the right auto-insurance coverage for your vehicle, keep in mind what your car is worth and the protection you want. You will be able to find the perfect policy to meet your needs.