Having a suitable amount of auto insurance coverage is one of the most important things that you can do to protect yourself against the liabilities that accompany driving. Knowing as much as you can about these policies will provide you with an insight that can be useful for preventing potentially serious complications.
What Happens If You Miss An Insurance Payment?
There are many individuals that may find that they are chronically late when it comes to paying their bills. However, this can prove to be extremely problematic when it comes to insurance coverage. Typically, the insurance company will suspend the coverage as soon as the payment is past the grace period. Depending on the particular insurance provider, your policy may be suspended for up to a couple of months before being formally canceled. Due to the immediate liabilities that this could result in you facing, you should consider paying for the total cost of your policy at the time it is issued so that you never have to worry about this type of coverage lapse.
Will Your Insurance Always Pay To Replace Your Totaled Vehicle?
After a serious accident, the damage to your car may be too extensive to be worth repairing. In these situations, the insurance company will likely declare the car to be totaled, and when this occurs, you will receive a payment based on the value of your car. Unfortunately, some people assume this will always be enough to replace the car, but many policies will consider the depreciation of the vehicle after the accident. This type of policy can result in you having sizable out of pocket expenses to replace your vehicle. Luckily, there are policies that will pay individuals for the price of replacing their car rather than the value of the damaged car, and while these policies are more expensive, the benefits of this protection can more than outweigh these additional costs.
Are There Any Addendum's That You Should Consider Using To Supplement Your Coverage?
Many insurance providers will offer their clients the opportunity to add specialized coverage to their policy through addendum's. While there are many people that will forgo investing in the additional coverage, they can be used to greatly improve the protection you have against auto accidents. For example, there are addendum's that will cover rental cars during periods when your car is being repaired and others may offer increasing coverage for medical bills. Closely reviewing the various policy addendum's that are offered by your insurance carrier will help you to identify the types of protections that you should add to create your perfect auto insurance policy.
For more information, you will want to contact a company such as Lanham Insurance Agency.