Extensions or Additional Covers to the Standard Motor Insurance Policies

You may have bought the insurance plan you needed, for example car insurance first month free no deposit. However, insurance policies can be provided with extensions to improve coverage. The following are some of the extensions provided to standard auto policies:

Green Card Coverage 

The Green card is another type of geographical extension. This system aims to make it easier for vehicles to circulate freely across borders and defend the interests of victims of foreign-registered cars.

The Green Card is a recognized document in more than 40 countries, including all of Europe. The Green Card does not offer coverage but it provides proof of minimum liability insurance requirements in any country where the Green Card is valid and are covered by the insured’s own auto policy.

This is suitable for those who are traveling to the countries covered by the countries accepting the Green card system. An additional premium is charged for extending this coverage. 

Rent a car reimbursement coverage 

Rental reimbursement or rent a car coverage is a type of additional car insurance coverage that helps pay for the cost of a rental car while the insured vehicle is being repaired or suffers the loss of use.

Rental reimbursement coverage pays for rental car costs when the vehicle is damaged by one of the perils, which is covered against own damage policy cover. 

The insured will be provided with rent a car facility by the insurer and the payments to the rent a car company are done directly by the insurers. In some other cases, the insured can take rent a car from the business of his choice and pay for the cost upfront. Later on, he will submit receipts and a claim form in order to be reimbursed for the cost of the rental vehicle.

The coverage of rent a car is not a blanket cover but it comes with a limitation like per day cost and the per accident cost. The Insurance company may provide an inner limit of $ 50 per day and maybe $ 500 per accident limit or they may put a limit of a maximum of 7 to 10 days. 

Emergency medical insurance coverage 

This coverage is for the driver and the passengers in the insured car. If due to any accident the driver and or passengers are injured and need medical treatment then the coverage is provided. The sum insured’s are very low, per person limit may range from $250 to $1,000. The coverage is inbuilt under most of the package or own damaged motor policies and the insurance company does not charge any extra premium for this. 

Protection and removal costs

This covers the towing, care, and protection for the insured vehicles. It will bear the reasonable cost of protection and removal to a safe place or the nearest workshop when the motor vehicle is disabled by reason of an accident insured under this policy. There is a monetary limit of coverage for towing usually it is between $ 500 to $ 2,000 depending upon the type and size of the vehicle. This coverage is inbuilt in almost all the package or own damage cover policies.

Waiver of depreciation coverage

Motor insurance policies are subject to the depreciation clause condition. Wherein a fixed rate of depreciation is enforced at the time of settlement of motor insurance claims. Suppose a new car is purchased for $ 100,000 and insured for the same amount and it meets with an accident after 9 months, then the insurance company may not pay the full amount.

Insurers will pay the depreciated amount of the car, which may be about 10% or more of the declared value of the car. This will become an issue in case the vehicle is taken on finance. The insured will have to bear the difference in the cost of purchase and the settlement. In such situations, the waiver of depreciation is usually helpful. The insurance company will charge an additional premium and will provide cheap full coverage with no deposit.

However, there are exceptions like tires and batteries etc. This is generally recommended for new vehicles. There is a time limitation of from 24 months to 36 months from the first delivery of the vehicle, usually fixed by the insurance companies for application of this endorsement. 

 Agreed value coverage 

Motor vehicle policies are based on the insured estimated value (IEV) or insured declared value (IDV), which is usually the market value at the time of insuring the vehicle. In some countries, there is the availability of a book known as blue book or red book, which provides the values of the vehicles to be insured.

However, in certain cases, the vehicle can also be insured under the special terms known as agreed value. Usually, the antique vehicles are insured under this condition. The insured estimated value is agreed by both the insurer and the insured and endorsed in the policy.

The coverage usually is good in case of a total loss. If due to a covered accident under the policy resulting in partial losses, the usual cost of repair is payable but in case of a total loss of the insured vehicle, the settlement of the claim is based on the agreed value even though the cost of the vehicle is higher or even lower than the intrinsic value. 

Loss of accessories cover

Loss or damage to accessories installed in the vehicle such as sound equipment, fans, air conditioners, etc., if they are not included in the cost of the vehicle. Then they should be covered separately. The extension is provided under the standard vehicle policy to cover the loss of accessories, the property of the Insured specifically declared by them for coverage. An additional premium will be charged to cover accessories. You can get these and many other extensions to your insurance policy with Good2go Auto Insurance.

Coverage to trailers 

A trailer is an unpowered vehicle pulled by a powered vehicle. Trailers to be used with any vehicle. Each trailer has to be separately identified and covered. An additional premium is charged for covering this type of vehicle against liability coverage or against package coverage.  Compare quotes and get instant auto insurance policy with the extensions you need.