If car is damaged beyond repair or “totaled,” there’s likely to be a difference between the amount that you still owe the Lender or Lease company and the check you’ll get from your insurance company. This coverage pays this “gap”.
Premiums for this coverage are generally much less if added to your new policy than if purchased through a dealer.
Medical payment insurance covers (up to the specified limit you choose) the medical costs resulting from an auto accident for you, your family, and others in your auto. It pays no matter who was at fault. You should keep in mind that if you and your family already have medical insurance, you may not need to purchase this optional coverage. However, you may want to get this coverage for your passengers who do not have their own medical coverage.
If your new car gets totaled within a certain period (usually first 1 – 2 years) you may be able to get a totally new car – not just a check for the depreciated value. This is relatively new, and conditions vary greatly so check with your agent.
Most carriers today use a mix of parts (OEM – Original Equipment Manufacturer, certified non-OEM, or even used) for repairs to non-essential / safety related body parts, while some use OEM parts only for repairing recent model cars.
This endorsement (not offered by all carriers) allows a choice between OEM and other repair parts, and may be packaged to include other choices as well. This coverage and availability varies by insurance carrier so check with your agent.
Uninsured motorist coverage actually consists of two coverages, uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD).
Uninsured motorist bodily injury (UMBI) coverage pays for injuries to you and to persons in your auto in accidents caused by uninsured or unidentified drivers. The law says that this coverage must be offered with liability insurance. If you don’t want this coverage, insurance companies must delete it, but they may ask you to sign a waiver.
Underinsured motorist coverage pays for bodily injury or death caused by an underinsured motor vehicle (that is, a vehicle which is insured, but at an amount that is less than your UMBI limits). Companies are required to offer this coverage as part of uninsured motorist coverage, with limits equal to your UMBI limits. They may also offer the coverage at limits higher than the UMBI limits.
Uninsured motorist property damage (UMPD) or Collision Deductible Waiver (CDW) coverage waives your deductible and pays for damage to your automobile caused by an uninsured motorist; however, either the owner/operator or the uninsured vehicle must be identified. Companies are required to offer UMPD coverage with the liability insurance policy.
CDW is what you would carry on vehicles with Collision coverage. If you don’t carry collision coverage on your auto, UMPD coverage pays up to $3,500 (not to exceed the value of the vehicle.
Rental car reimbursement also known as “loss of use” coverage, provides reimbursement when you need to rent a replacement vehicle should you be involved in an accident and you car in inoperable or while it is being repaired.
Most carriers offer a per day limit, as well as a maximum per incident amount i.e.: $30 – 50 per day with a 30 day or a set maximum.
Customization is always fun (and can be expensive). Make sure your add-ons are covered. Each carrier is different (and adding it if necessary is generally very low cost) so ask your agent about this coverage, particularly if you have added equipment.
Towing – Coverage may be available for reimbursement of Towing and Labor charges. Depending on the carrier, this may be covered only due to a covered loss, and some provide 100% coverage. Reimbursement ranges from a fixed limit (i.e. $25 per incident to actual loss).
Roadside Assistance – Several carriers now offer an upgraded “Roadside Assistance Coverage” often at much lower rates than your AAA or other organizations. It does not have to be a covered loss, and there is no payment in advance. Coverage may include not only the towing, but services for lockout, flat tire, gas, etc. Extended Warranties for New & Used Cars
Extended warranty insurance is now available from many Major Insurance Carriers – Perhaps the same carrier that you have for your auto insurance. These contracts and carriers are regulated by the State Department of Insurance are often broader – yet can cost 25% to 50% less than a similar service contract purchased at the time of sale through your dealer.
Coverage can be purchased on new and used vehicle for periods covering 3-6 years and up to 100,000 miles.
Our offices are conveniently located at:
1622 S. Gaffey #104
San Pedro, CA 90731
3220 Sepulveda Blvd #202
Torrance, CA 90505