Claims and Beyond: An Auto Insurance Blog

Auto insurance policies come with standard and optional coverages, which provide the fundamental protections that a policy offers. You can enhance your policy's protections by adding endorsements, however. These are specific protections that can be amended into a policy. Here are some auto insurance endorsements you might want to consider.

Accident Forgiveness Endorsement

Auto insurance rates usually increase if you're in an accident, and the increase can be substantial. It also lasts for several policy terms. A substantial increase for several terms can cost you quite a bit if you're ever hit or hit someone else.

An accident forgiveness endorsement ensures that your premium won't increase if you're in an accident. The endorsement sometimes costs a little extra, or other times comes as a free benefit. In either case, it could save you a lot should you ever collide with another vehicle.

New Car Replacement Endorsement

Should your car ever be damaged in a covered incident, standard auto insurance will compensate you up to the fair market value of your vehicle. This amount can be quite a lot less than what a new car would cost, as vehicles depreciate in value. 

A new car replacement endorsement upgrades the protection that you have against vehicle damage. Should your vehicle be totaled in a covered incident, this endorsement will provide you with a brand-new model of your current car. You'll receive the latest version of the same make, model, and trim as you currently drive.

Rideshare Endorsement

Standard personal auto issuance policies protect when you're driving for personal reasons. If you're being paid to drive, then the driving becomes business driving. Your personal policy might not cover accidents that occur while you're being paid.

This potential coverage gap has become a prevalent issue as drivers have begun working on ridesharing platforms. Drivers need more coverage than pure personal auto insurance provides, but they don't need a traditional commercial auto insurance policy that costs significantly more.

Insurance companies offer rideshare endorsements to address this need. A rideshare endorsement will extend a personal auto insurance policy's coverage when driving for rideshare platforms. 

Roadside Assistance Endorsement

A roadside assistance endorsement provides around-the-clock emergency help if you're ever stranded while driving. The endorsement might provide fuel, tire changes, and towing, depending on the endorsement's specific terms. 

If you don't have roadside assistance through membership with another organization, purchasing a roadside assistance endorsement is an easy and affordable way to get this protection. 

For more information about automobile insurance, contact a local company.