In 2020, 31 million people were uninsured in the United States, and if history repeats itself, this number will continue to grow in 2021.
While insurance is a highly debated topic, there’s no hiding its importance and necessity in today’s world. But, we’re not going to bore you with information you already know. Instead, we’re going to talk about some lesser-known affordable auto policies that you can’t ignore.
So, if you’re a driver or license holder, then keep reading to get a complete look at our recommendations for insurance.
GAP Insurance or Guaranteed Asset Protection, is an optional add-on auto policy. It covers the “gap” between the amount owed on a car, and its actual cash value or AVC, should an accident occur. It covers totaling, stealing, and destruction of a car from a covered claim.
The moment a sold car drives off the lot, it begins depreciating. If you’re in a car accident and the car is totaled, but you still owe $15,000, and the AVC is $10,000, GAP insurance covers the $5,000 difference.
Anyone benefits from this insurance, but especially those with a 5-year loan or longer, high-interest rates, or low down payment.
On average, this insurance should only cost you $20 a year. That’s $20 that could end up saving you thousands while you’re potentially working with a lawyer or paying medical bills.
Medical Payment Coverage
Medical Payment Coverage or MedPay is also an add-on auto insurance and supplemental to health insurance. It covers medical expenses related to vehicle accidents.
For example, if you live in Florida, there’s a $10,000 minimum PIP insurance for vehicles. If you’re in an accident and your car is totaled, and the medical expenses exceed $10,000, instead of paying out of pocket, MedPay would cover the excess costs. This covers you as a driver and passenger as well as other passengers in your vehicle.
It even covers pedestrians possibly harmed in the accident, making this coverage particularly useful in urban areas, where pedestrians are more likely to be involved. However, everyone benefits from MedPay.
Uninsured Motorist Coverage
Uninsured motorist coverage is by far one of the most useful and important coverages we’ll discuss today.
It protects you from at-fault drivers that have little to no liability coverage. If you’re a victim of a car accident where the at-fault driver does not have enough liability coverage, you’ll be paying large sums of money out of pocket. But, with this coverage, you’re protected from other people’s irresponsible driving.
In some states, underinsured and uninsured motorist coverage comes together as a policy. It can also be more expensive in states where there are low rates of insured drivers.
Our Top Recommendations for Insurance
Many companies offer recommendations for insurance, but the policies listed here today are the most functional and beneficial coverages available. Even investing in one of these alone can save you thousands of dollars.
After reading this, we hope you feel confident exploring new coverage options! Here at Reed & Reed, we want to educate and help our community. If you have any questions, don’t hesitate to contact us. In the meantime, check out our blog for more insurance-based information!