May 26, 2010

What An Auto Insurance Rider Is And How It Is Helpful

People are always searching for ways to save money, especially on auto insurance. There are many ways to lower your premium, such as increasing your deductible, maintaining a clear driving record, and completing a driver’s training class. These are some of the more commonly known methods, but there is certain coverage that you can have added to your insurance policy that will also help to reduce the amount you pay yearly for insurance.

One of these ways is by adding an auto insurance rider to your policy. A rider is an endorsement or change that is added that adjusts your policy by actually deleting coverage. Not only does it save you money, but it also gives you additional protection for your automobile. Following are a few common auto insurance riders that you should inquire about when you obtain an auto insurance quote.

Uninsured/underinsured motorist coverage protects you in case you are involved in an accident with a driver who is inadequately insured, but only up to specific limits. The Family Protection Coverage endorsement increases the limits of your liability coverage if you or any one of your family members are injured or filled in an accident caused by an under or uninsured driver.

The Waiver of Depreciation guarantees that if your brand new vehicle is totaled off in a set amount of time after purchase, no depreciation will be applied. You will get back the total amount that you paid for it. As well, it entitles you to have it repaired with original manufacturer parts if damaged.

Loss of use allows you the use of a rental vehicle if yours is damaged or must be replaced due to a covered peril in your insurance policy. It also covers use of public transportation, such as taxis or buses. You will receive reimbursement for these expenses.

Finally, accident forgiveness is a rider that can be applied to drivers who have a spotless driving record. If you have had no at-fault accidents in the previous 6 years, you can add this on. Accident forgiveness “forgives’ your first at-fault accident, should you have one. Each at-fault accident remains on your driving record for several years and raises your premiums. With this endorsement, that first accident is wiped away. However, once an accident does occur, this endorsement cannot be added back on for another six years.

Whenever you get auto insurance quotes, ask your insurance agent what riders may pertain to you. They can save you a lot of money while providing extra coverage at the same time. Keep in mind that some riders can usually only be used once and is exhausted after you draw a claim on it.