Car insurance is not a thing that you think about on a daily basis. For me, I renew my policy every 6 months and forget about it for the rest of the months. Recently I found many nuances of car insurance that I’d like to share.
There are ways to earn money using your car, you can advertise on your car, you can drive for rideshare, you can deliver food, etc. But when you do such things to use your car to make money, you need something more than personal auto insurance.
I bet that all of you look into it when the time to renew your old insurance comes and you always do that in a hurry without exploring all the options in detail.
You can regularly check for cheaper car insurance and also the options that you need and not covered, as well as you don’t need but paying for it. A regular review of your car insurance is needed.
It’s advisable to read, ask, and learn as much as possible before you pick an option in order to avoid any unpleasant surprises and to make the best of the benefits you are offered.
If you read more in this article you find 3 car insurance options that you didn’t know about.
I have to admit that I didn’t know about them either!
1. No down payment car insurance policy will cost you more in the long run rather than a policy of a down payment
Do you know what is a no down payment insurance policy?
This kind of policy gives the driver the possibility to initiate the insurance only with the first month’s premium.
This is a great option for you if you don’t have money to pay upfront and you have just enough to start your policy and obtain your insurance.
If you are not sure how that is working make sure you check out a guide on no down payment car insurance
2. Gap insurance will help you pay off a loan if your car is stolen or totaled
When you buy a new car as soon as you leave the store’s parking lot the value of your car drops.
It’s said that cars lose 20% of their value in the first year and up to 60% in the next 2-3 years. So, what is gap car insurance in fact?
If you have damaged or totaled your car, the insurance will pay the difference among your car’s current worth and the amount of money that you actually owe for it.
How do you know whether you need this type of insurance?
You should get one if your loan is 60 months or more, you have paid less than 20% of your car’s amount or you are leasing a vehicle.
3. Rideshare Car Insurance covers business use of your vehicle
Are you riding a Lyft or an Uber with your personal vehicle?
You should know that your personal car insurance won’t cover the costs of any accidents that will happen while you are working and you will end up paying for injuries and repairs from your own pocket.
Additional coverage of rideshare insurance will provide you with ways to protect it in case you are riding your car for both professional and business uses.
The best thing is that you can add this coverage to your existing car insurance policy.
If you aren’t sure what’s the car insurance option that is the most suitable for you, you should always consult an agent and help you decide accordingly.
It’s of crucial importance that you inform yourselves well before picking the option that will answer all of your needs!