Auto Insurance- Optional coverages

You may buy other coverages for an additional premium to cover items in your car, new or additional cars, rental cars, or driving in Mexico.

Stereo Equipment

Your policy won’t pay for CDs, MP3 players, cell phones, citizen band radios, or stereo equipment not installed in your car.

New or Additional Cars

If you buy another car, your policy might automatically cover it with certain limitations. Read your policy or ask your agent to find out if you have this coverage.

Insurance companies usually give additional cars the same amount of coverage as your car with the most coverage. For example, if you have two cars – one with liability coverage only and one with liability, collision, and comprehensive coverages – and you buy a third car, the third car will automatically have liability, collision, and comprehensive coverage.

A replacement car usually has the same coverage as the car it replaced. For example, if you trade in an older car that only had liability coverage,  the new car will automatically have only liability coverage.

Be sure to tell your insurance company as soon as possible that you have added or replaced a car and which coverages you want. You could lose coverage on an additional or replacement car if you wait longer than the number of days specified in your policy to notify your insurance company.

Rental Cars

Rental car agencies offer collision damage waivers and liability policies. The collision damage waiver is not insurance. It is an agreement that the rental company will not, with certain exceptions, try to make you pay for any damage to a car you rent.

If you have auto insurance, your policy may already cover damage to a rental car. Your coverage limit, however, might be less than the value of a rental car. Read your policy to know what’s covered and the coverage limits. If your coverage limit is too low, consider increasing it. You will pay more in premium, but it might be cheaper than buying additional coverage through the rental agency, especially if you rent cars often.

If you don’t own a car, but borrow or rent cars often, you can buy a non-owner liability policy. A non-owner policy pays for damages and injuries you cause when driving a borrowed or rented car, but it does not pay for your injuries or damage to the car you are driving.

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