We've all been there. You're standing at the register at a fast food joint and when you place your order the #6 Super Stupendous Meal the person behind the counter says, "For 35 cents we can upgrade you to Gigantor Size and throw in an extra burger."
You shrug. Why not?
Moments later you're staring at a tray with far more food and drink than a normal human can consume and you're probably going to throw most of it away. So what did you really get for your 35 cents? 35 cents poorer.
It's not much different when you sign up for auto insurance. While you're looking for the best quote, go ahead and take a look at the different add-on options to your policy. Are they worth it? The options they offer could be beneficial to the right person and in the right situation.
Let's take a look and see if these options are good for you.
Popular Auto Insurance Options
1. Gap Coverage
Simply put, this covers the difference if you owe more on your car than the car is worth. You know how they depreciate as soon as they leave the lot? Well, that means you're now in the hole with that loan. This coverage can be quite cheap and may be worth it if you're buying a new vehicle or are underwater on your loan. It's a well-known fact that most cars depreciate significantly as soon as they leave the lot – gap insurance keeps you covered.
2. Personal Injury Protection (PIP)
This protection is a requirement in some states, so it's not really an "add-on" in those locations. This insurance covers the driver and passengers against injury up to a certain amount. It can be useful to cover health insurance deductibles.
Should you get it? This one's up to you. If you have stellar health insurance, you may want to pass. Otherwise, for the cost, it has some decent benefits.
3. Customized Equipment
Just like it sounds, this little extra will cover all of the gadgets and doodads that you've added to your car. Raised spoilers, fancy rims, and premium aftermarket audio systems are a few items covered. If you're driving a car that isn't rocking a lot of after-market products, you can skip this one.
4. Pet Insurance
This insurance add-on may pay off if your pet has a high monetary value and frequently rides with you in the car. For example, if you raise show dogs or rare animal breeds, pet insurance may be worth the cost. Goldfish owners relax. You're off the hook.
It's easy to let the fine print fuzz out as you're getting ready to sign your policy, but each of these items (and these are a few possibilities) will add cost on to your monthly or quarterly premium.
When you need them, the cost is worth the benefit. Otherwise, it could be an extra burger you end up tossing away.