4 Important Auto Coverages to Consider

Whether you are getting ready to insure a new car or are considering altering your current coverage, understanding auto insurance can feel overwhelming. That’s why we’ve outlined below some of the most important auto insurance products to consider in your personalized coverage.

Base Transportation Expense Coverage: 

Transportation expense coverage provides you with a specified amount of funds to cover the cost of a rental car or other modes of transportation should your vehicle be undriveable due to a covered loss. Many carriers include a base coverage, but it is up to you to decide if you need additional or increased limits. For example, if you use your car to transport your family of six, but only have the base transportation expense coverage available, you will likely only receive enough money to cover a standard 4-door sedan, and will be responsible for the remaining cost of a larger vehicle. In this case, you would benefit from expanding your coverage to ensure that you can rent a vehicle comparable to your own with minimal out-of-pocket cost. 

New Car Replacement Coverage:

New car replacement is very important for those who own vehicles that are less than 3 years old. Having this coverage option means that in the event of a covered total loss, your insurance carrier will pay for the cost of the new model year equivalent of the same vehicle you have or a comparable one. It’s especially important to consider this type of coverage if you have a newer car that will depreciate quicker than your loan is paid off.

Original Equipment Manufacturer (OEM) Parts Coverage: 

This coverage option is important to those who value keeping their vehicle as close to original as possible. If your vehicle is involved in a covered loss and OEM Parts coverage is included in your policy, additional funds will be allocated to ensure your car is repaired with original manufacturer parts. It is important to note, though, that many companies do not include glass in this coverage. 

Personal Articles Coverage: 

When purchasing auto insurance, many people don’t consider coverage limits for the items you are carrying in your vehicle with you. Many companies, including NYCM Insurance, include personal articles coverage in base packages. However, you may want to consider increasing the limit of your coverage if you are often transporting valuable items like musical instruments, power tools, and more. 

Understanding what your auto policy covers and making changes to best fit your life’s circumstances is important. Click below to find a local insurance agent to discuss if the above coverage options are right for you!