You may think that if you are in a car accident and your car is damaged or totaled that your car insurance will pay the claim, right? Well, yes, car insurance can provide coverage for covered losses to your car, but some stipulations/exclusions may apply which could impede payment for the damage to your car. Purchasing a one-size fits all car insurance policy may not fit your particular needs, so you need to consider some common car insurance endorsements and how they may fit your budget and suit your needs.
Car Insurance Endorsements
An endorsement is basically an “add-on” to your existing car insurance policy that amends your policy to either add or take away coverage; however, keep in mind that your premium rate may be affected by any change to your N.C. auto insurance policy.
Some Common Car Insurance Endorsements You May Consider
Your N.C. auto insurance policy can be changed right along with any changes you experience in your life. For example, you may wish to delete comprehensive and collision coverage because your car is considered to be older and you have paid off the car loan or you may wish to delete a listed driver from your policy, both of which should result in a lower premium.
However, below are some add-on endorsements that could result in a slightly higher cost in your insurance premium, but having the added coverage gives considerable peace of mind, without a hefty price tag.
New Car Replacement- This endorsement can be added if you purchase a car that is less than one year old with less than 15,000 miles, and states that if you total your car, you will be compensated for the full replacement cost, without consideration for any depreciation.
Gap Coverage- This endorsement provides peace of mind knowing that if you buy a new/newer car and it gets totaled, this will pay the “gap” between what you owe on the car and the actual cash value at the time of the loss.
Rental Reimbursement- When your car is in the shop for repairs, having this type of endorsement allows for the cost of a rental car during the time your car is in the shop. *Certain limits may apply, so check with your local N.C. independent insurance agent to inquire.
Towing and Labor- Having this endorsement means that if your car breaks down, the cost of the towing and labor to transport your car to a body shop of your choice will be covered.
Roadside Assistance- If you travel a lot, this endorsement is one for you to consider. If your car breaks down, this will cover the cost to get your car back up and running as quickly as possible, such as replacing a dead battery, or locking the keys in your car.
Custom Parts and Equipment- This additional coverage pays for the cost of damage to aftermarket equipment/custom parts you’ve installed in your car, such as a specialized paint job or custom stereo system.
Accident Forgiveness- Accident Forgiveness is an endorsement that can be added to your N.C. car insurance policy that states you will not experience an insurance rate increase due to your first accident. *Certain restrictions may apply, so consult with your local N.C. independent insurance agent to see if you qualify.
Do You Need to Make a Change?
These endorsements are just some of the most common types of additional coverage options available, but we can assist you with any of your car insurance needs. We understand at Paramount Insurance Agency that each person has individual needs and we have an experienced staff that can design a unique auto insurance policy that gives you the coverage that you need within a budget you can afford. Call us TODAY at 866-869-3335.