Automobile insurance is one of those things that a car owner just can not do without these days. There are so many different types of car insurance that a person can look into, and depending on your situation you may be more prone to choose one type of coverage over another. There are multiple forms of automobile insurance coverage, and knowing what type of coverage you need can make it easier to get the automobile insurance quotes that you need to make a decision on insurance. To make it easier for you to get the insurance you need, we have broken down a few of the major types of insurance that you may want to look into for your vehicle.

Liability Automobile Insurance

Liability insurance is the most commonly used type of automobile insurance on the market today. This is the insurance catch-all of the industry, one of the most common types that there is. In most areas of the United States, car insurance is mandated by law; any type of car on the road should have insurance on it, at the very least liability.

Liability insurance is not the type of insurance that you should look into if you have a new vehicle. This insurance only covers the damages incurred by the other party that you may be held liable for. If you are at fault for the accident, the liability insurance coverage goes in on your behalf and pays the necessary costs that are incurred.

Collision Automobile Insurance

Collision insurance is just what it sounds like; it is insurance designed for those who want protection from a collision with another vehicle or object. Liability insurance does not cover anything other than the liability that arises from ownership of the vehicle. Collision coverage will fix your car if you end up getting into some type of accident, something that people with brand new cars are desperately in need of. If your worst fear is getting into an accident in your car, collision coverage just may be the way to go.

Comprehensive Automobile Insurance

One of the higher automobile insurance quotes you are going to get is for comprehensive coverage. Comprehensive coverage covers everything except collision; that is what collision automobile insurance is for. With such coverage, the insured is protected against theft, vandalism, and other things of that nature and for those who strongly value their cars this is the type of automobile insurance to look into.

Automobile insurance is one of those things that car owners just can not do without. There are certain types of coverage that are more important to some than others, and knowing what you want is an integral part of the automobile insurance quotes collecting process.

My mother in law went to get into her car after a long day at work but her car wasn’t there. Someone had stolen it. After the calls to the police and the insurance company she started to worry. “Do I have enough insurance to pay off the car?” I told her if she bought Gap insurance she is covered no matter what she owes. Her next question was one I hear quite often as a licensed insurance professional. “What is Gap insurance?”

Gap insurance covers the gap between what you owe for the car and what the car is worth up to a certain percent, usually 150%. A lot of people think if they have comprehensive and collision coverage sometimes known as “full coverage” that their loan would automatically be paid off if their car was stolen or totaled. They are wrong. Those coverages pay only what the car is worth not what you owe. If your loan is more than the car is worth you would have to pay the difference out of your pocket.

Do you need Gap Insurance? Well that depends on a few things. You’ve heard it many times, once you drive your new car off the lot it starts depreciating. Just remember your loan doesn’t. If you put enough money down that you don’t owe more than the car is worth, you don’t need Gap Insurance. If you had a trade in that wasn’t paid off, or if you didn’t put much down you probably do need Gap Insurance.

Sometimes the dealerships will offer you this coverage when they are working on your financing. Usually it is a lot cheaper to get it through your insurance company. Plus, you only need the coverage for a few years until you’ve paid down your loan. So why finance it for 5 or 6 years? Some banks even include free Gap Insurance when you finance your car through them. It never hurts to ask.

Do your homework before driving off away. Check websites on the value of your car. Make sure you go back and check every year to find out the value of your vehicle and compare it to what you owe. Once you’ve paid the loan, be sure to cancel the coverage.

You might think you don’t need it because Gap Insurance only benefits the lender. After all, they will be the ones who get the check if the car is totaled or stolen. However if you don’t have the coverage, you will have to pay the loan off regardless of what the insurance company pays you for the vehicle. And no one wants to be making a car payment for a car they don’t have anymore.

Having Gap insurance can save you thousands of dollars depending on what you owe for your car. It is usually inexpensive but call your insurance agent to find out exactly how much it will be. Luckily, my mother in law did have the extra Gap insurance so she was able to get a brand new car. This one has a much better alarm though just in case.

Every single driver in the U.S. is required to have Car Insurance. And most of us drive around confident that we have adequate coverage to protect us should we ever be involved in an accident.

Yet, almost 97% of all drivers are not adequately protected….and don’t even know it. Here’s what I mean.

Let’s say you’re involved in an accident and it’s serious enough that the car is considered a “total loss” by your Insurance Company. Or, maybe your vehicle gets stolen. A few weeks later, you get a check from your Insurance Company.

When you look at the amount, you’re shocked. It’s thousands less than what you owe on your car. How can that be, you ask?

Well, like most, your policy has this short clause buried somewhere in all that legalese -

“In the event of a total loss, the policy holder will receive the actual cash value of the vehicle, minus any deductible.”

Did you catch the 3, very important words in that clause? The three words are – “actual cash value.”

Actual Cash Value means you’re going to get a get a check for….

“What it’s worth” not “What you owe.”

Isn’t that a nasty little surprise.

And like most, you owe quite a bit more than what the car or truck is worth. What would you owe your Bank or Credit Union if your car was totaled today?

So, how do you avoid this situation?

Well, when you buy a new or used vehicle, add a “rider” to your policy or purchase a separate “rider.”

If you have Homeowners or Rental insurance, a “rider” might sound familiar. For a homeowner’s policy, if you own expensive items, like fine jewelry, you need to add a rider to your policy. The reason – Insurance Companies won’t cover those types of items as part of a regular insurance policy.

So, you pay an extra $10 or $12 a month to have those items fully covered by the “rider.”

If anything ever happens to the jewelry, it gets replaced.

A rider for your car or truck is called GAP Insurance or GAP Protection. It’s just like the rider for your Home – except it’s only for cars, vans, trucks or suv’s.

It covers “What You Owe”, not “What its worth.”

It doesn’t matter what the reason is – if it’s ever totaled due to theft, fire, accident, flood, tornado, vandalism, hurricane, it’s covered – and paid-in-full!

You can protect yourself four different ways.

1. Put at least 20%-30% down on any new or used car purchase to erase any gap;
2. Purchase a “Rider” – AKA GAP Insurance from your Car Insurance Company or Bank;
3. Purchase Gap Insurance from another Insurance Company;
4. Buy Gap Insurance from the Dealership you’re buying at.

Any one of these options is great way to protect yourself. Whether you’re getting ready to purchase a new car or truck, or purchased a vehicle in the last 12 months, make sure the “gap” between what your vehicle is worth and what you owe is covered.

Always makes sure you read the small print on any legal documents especially insurance documents – it is better to spend time making sure you are covered rather than finding out afterwards!

So what could possibly be more sleep-inducing than reading (or writing) a 600-word article about auto insurance? After considerable brain-racking, I’ve come up with one possibility: watching towels dry. However, if you drive a car in the United States, the law requires that you have your fair share of auto insurance. This article, in particular addresses one facet of auto insurance coverage: glass coverage.

So what’s your point?

The purpose of this information page is not to navigate the morass of options, riders, or auto insurance companies. If you don’t know whether you want “good hands” or a talking lizard, you should dig deeper on the websites these companies spend lots of money on to entice your patronage. Or you could investigate getting yourself a reputable insurance agent to act on your behalf. Insurance agents are people who think insurance is fun, and therefore can be trusted to accurately answer insurance questions. One resource for locating a reputable agent is the Independent Insurance Agents; Brokers of America website: http://www.iiaa.org.

Again, what’s your point?

The point of this article is to address just one aspect of auto insurance coverage, namely the aforementioned glass coverage. Should you have it? Should you skip it? In most cases, a glass coverage rider can be added to your policy relatively inexpensively – depending upon your situation, it could be less than $10 per month. Considering the cost of glass replacement (a windshield alone could cost over $200 to replace), it could be a wise investment.

But before making insurance decisions, you must assess your situation first. How much driving do you do? Under what conditions? On what type of roads?

Let’s address these questions individually.
1. How much driving do you do?
If you normally drive 3.5 miles on Sunday to attend church, and park your vehicle in an environmentally controlled garage the rest of the week, you may not need glass coverage. However, if you drive every day, and if your driving is for extended periods, your chances of a damaged windshield due to road debris, flying junk throw up from passing motorists, or the occasional misguided pigeon, are statistically higher. Calculate your weekly, monthly, and yearly mileage to help you get an idea of how much time you actually spend on the road. You might be surprised at the results you find.
2. Under what conditions do you drive?
Do you drive in adverse weather conditions? Windy or stormy conditions increase the odds of rubble being blown into your auto, and sub-freezing weather makes your windows more susceptible to damage by making them more brittle.
3. What type of roads do you drive on?
If you drive on unpaved roads, your chances of catching a stone thrown up by another vehicle rise. Also, if you travel on highways or expressways, you increase your chances of damage from long-haul trucks or construction vehicles that frequently drop bits and pieces of stuff as they pass. In addition, your higher rate of speed means anything hitting your windshield is colliding with it at a higher rate of speed.

So I guess you’re saying my auto insurance coverage should include glass coverage.

I am not an auto insurance agent. I don’t work for any auto insurance company. The information presented here is to help you come to your own decision – to provide you with the auto insurance opinions of this author, and some food for thought. I will say, however, that I do carry glass coverage, and it has enabled me to replace several windshields in the past three years. And that, my friend, beats the heck out of driving around wearing goggles and a scarf like a WWI flying ace. Keep the bugs out of your eyes and make sure your covered.

You go to the dealership to purchase a brand new car. You are overjoyed that you’ve finally found the car of your dreams. You get approved for financing and then find out through the dealership that if the car is written off in an accident, your insurance company may only pay you what the car is worth at the time. This will leave you with a “Gap” between the amount paid by the insurance company and the amount left on your loan. That’s where Gap Insurance comes in.

Gap insurance will usually pay between 120%-150% of the value of the car in the event of a total loss. More than likely, this will be enough to pay off your car loan and give you some peace of mind. It is important coverage to have. If you don’t have Gap Insurance and your vehicle is damaged beyond repair, you could be left making payments on a vehicle that is just a pile of metal!

Don’t assume, however, that your car dealership will offer you the best rates on Gap Insurance. Do your homework to find the best deal. Some companies will offer you quotes online, and many car insurance companies will offer Gap Insurance as an add on to your car insurance policy at a reasonable price. Be aware, however, that if you choose to get coverage from your insurance company and switch insurance companies, your new insurance company may not offer Gap Insurance. It was for that reason, that we decided to purchase Gap Insurance with the dealership just to be safe, even though it was slightly more expensive.