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You go to purchase car insurance in Salt Lake City or some other major city, and the agent asks you all kinds of questions about what coverage you need. It starts out with comprehensive and collision since liability coverage is required. Then, they start asking if you want GAP coverage, rental car reimbursement and other add-ons. You may either say yes or no to everything, depending on whether you are focused on price or coverage.

Many people never stop to think about whether they need the extra coverage or not. They make a snap decision, and sometimes they regret it. The truth is that add-ons can be unnecessary or they can be helpful, depending on your other options.

GAP coverage is protection for you if you should be in an accident where your vehicle is totaled. If you owe more on your vehicle than the value, GAP insurance pays the difference. In some cases, the policy even gives you enough money for a small down payment on a replacement vehicle. So, should you get?

It depends on whether you expect to owe more on your vehicle than it is worth. If you only put down a minimal down payment, you may owe more than the value of the car. If you paid down half of the price, that may not be the case. You also have to consider whether you already purchased this coverage when you bought the vehicle. In some cases, GAP coverage can be less expensive when purchased through an insurance company than through the finance company, so the time to shop for this coverage is before you buy a new vehicle.

If your vehicle insurance is in the shop for a covered accident, you can receive a rental car paid by the insurer. Since rental rates can be quite high, this coverage could save you money. However, you want to consider whether you need it or not. If you have a second vehicle at home, you may be able to get by without a rental for a few days. On the other hand, you may want the coverage if you depend on your vehicle to get you to work or if you travel for your job.

Towing/Roadside Assistance

Breaking down on the highway far from home is never fun. Insurance providers offer towing and roadside assistance for an extra charge on their policies. While this sounds good in theory, you must decide if you will actually use it. Some policies limit you to less than 50 miles free with towing while others may pose special restrictions.

If you have a brand new vehicle, it often comes with roadside assistance. You may also be a member of an auto club or other group which offers this as part of the package. You don’t want to pay twice for the same product. Make sure you know the details of what is offered, such as towing distance and number of times you can use the service in a year. Compare pricing and products and choose the one that make the best sense to you.

Always ask for the details about any add-ons offered when you buy car insurance. Know what you’re getting and how much you’re paying.

ASA Insurance provides excellent coverage for car and home insurance in the Salt Lake City area with the lowest rates to the English and Spanish communities. Affordable rates and superior service for all home, auto and business/commercial insurance needs.

[Source: http://articles.abilogic.com/183587/truth-about-car-insurance-add.html]