14 Commonly Overlooked Auto Insurance Coverage

It is true when they say ignorance is bliss.

But only until you get into an unfortunate road accident and realize you have to pay out of your pocket because you didn’t get the right coverage in your auto insurance plan.

And now, ignorance is pricey! Ignorance is disastrous!

Most car owners are required by law to buy auto insurance, but they tend to overlook the details or research the right coverage before fulfilling this requirement.

In this blog, we’ll discuss commonly overlooked coverage types so you can make an informed decision when buying an auto insurance plan.

1. Bodily Injury Liability

Bodily injury liability coverage is one of the most important types of auto insurance coverage, yet it is often overlooked. This coverage pays for the other driver’s and passengers’ medical expenses if you are involved in an accident and it is determined that you are at fault. Without this coverage, you could be on the hook for thousands of dollars in medical bills.

2. Medical Payments

Medical payments coverage is a type of auto insurance coverage that can help pay for your medical expenses if you are injured in an accident. This coverage can help to cover the cost of ambulance rides, hospital stays, and doctor’s visits. This coverage can be especially important if you do not have health insurance.

A bike crashing into a car

3. Uninsured Motorist Coverage

Uninsured motorist coverage is one of the most important types of auto insurance coverage that you can have, yet it is not one of the common ones. 

This coverage protects you if you are in an accident with a driver who does not have insurance. If you are injured in such an accident, your uninsured motorist coverage will pay for your medical bills, lost wages, and other damages, even if the other person involved isn’t able to pay.

4. Custom Parts And Equipment Coverage

If you have custom parts or aftermarket equipment installed on your car, custom parts and equipment coverage will reimburse you for the cost of repairing or replacing those items if they’re damaged in an accident. 

5. Property Damage Liability

Property damage liability coverage is another important auto insurance coverage often overlooked. This coverage pays for the damage you cause to another person’s property in an accident. This can include damage to their vehicle, home, or other personal property. Without this coverage, you could be responsible for paying for the other person’s repairs out of your pocket.

6. Towing And Labor Coverage

Towing and labor coverage pay for the cost of towing your vehicle to a nearby repair facility if it breaks down while you’re driving. This coverage is important because it can save you from paying hundreds of dollars out of pocket to tow your vehicle to a nearby repair facility if it breaks down while driving. 

7. Excess Electronics Coverage

Excess electronics coverage pays for replacing or repairing electronic items in your vehicle that are damaged by things like fire, theft, vandalism, or weather damage. 

8. Child Seat Replacement Coverage                      

Child seat replacement coverage reimburses you for the cost of replacing a child seat that’s been recalled by the manufacturer due to safety concerns. This coverage is important because it can help keep your child safe by providing a replacement child seat if their current seat has been recalled.                      

Illustration of different types of a car accident

9. Diminution In Value Coverage                 

Diminution in value coverage pays for the loss in value of your vehicle after it’s been in a major accident. 

This coverage is relatively more important for higher value or newer vehicles as their value will still be diminished even after the repairs 

10. New Car Replacement Coverage

Some insurers offer this type of coverage as an add-on to collision coverage. If you total your new car in an accident, new car replacement coverage will reimburse you for the cost of a brand-new replacement car, up to the manufacturer’s suggested retail price.

11. Customized Equipment Coverage

Customized equipment coverage helps pay to repair or replace any customizations or aftermarket additions to your vehicle. For example, custom paint jobs, stereos, or wheels. 

Without this coverage, you would have to finance any customizations independently. 

Some insurance providers offer customized equipment coverage as an add-on to comprehensive and collision coverage, but not all insurers offer it 

12. Rental Car Reimbursement

If your car is damaged in an accident or stolen, rental car reimbursement coverage will help to cover the cost of a rental car while your vehicle is being repaired or replaced. This auto insurance coverage is typically fairly inexpensive and can be a lifesaver if you rely on your vehicle to get around.

13. Roadside Assistance

Roadside assistance coverage can help to cover the cost of services like towing, flat tire changes, and battery jumps if you have a breakdown. This coverage can be a godsend if your car breaks down in a remote location. 

14. Gap Insurance

If you have a loan or lease on your car, gap insurance will help to cover the difference between the amount you owe on the loan and the actual cash value of the vehicle if it is totaled in an accident

Suppose you’re buying auto insurance on a recently purchased car. In that case, it’s important that you discuss this coverage with your auto insurance agent, as it can help to protect you from being stuck with a large bill in case of any unforeseen incident.

Insurance advisor explaining auto insurance policy to a client

Speak To An Auto Insurance Agent In Springfield!

At Western Mass Auto Insurance, we are your one-stop shop for all your auto insurance needs. 

Our trained insurance agents can help you understand the ins and outs of auto insurance coverage in detail. 

Along with auto insurance, we also offer commercial vehicle insurance and apartment insurance

Our Springfield location also offers a full registry service where you can get a registered license plate or an insurance plan in only about 15 minutes. 

Request a free quote from one of our insurance agents today!