As a responsible vehicle owner, it is imperative to stay up to date with your insurance coverage policy. Auto insurance is mandatory in almost every state and can add up to a significant expense in your monthly budget.

But did you know that adding special covers to your policy can help you save money on premiums? In this article, we will discuss how special covers can be a game-changer in your car insurance policy.

What are special covers?

Special covers are add-ons that can be added to your car insurance policy to cover specific situations or risks that may not be included in a basic policy.

These add-ons can provide additional protection to your vehicle in case of an accident, damage, or theft.

How do special covers help in reducing premiums?

Adding special covers to your policy might seem like an unnecessary expense, but it can actually help you save money in the long run. Here are some ways in which special covers can help reduce your premiums:.

1. Increased Deductibles

Special covers can often come with a higher deductible amount, which means that you would have to pay more out of your pocket before your insurance policy kicks in. However, opting for a higher deductible can lead to lower premiums.

2. Bundling

Insurers offer discounts to policyholders who bundle multiple insurances together. Special covers can be an excellent way to bundle and save money on your premiums.

For instance, some insurance companies offer discounts if you bundle your auto insurance with your homeowner’s or renter’s insurance policies.

3. Reduced Risks

Special covers provide extra protection against risks that might have been excluded in a basic insurance policy. Such additional protection reduces the risks associated with your vehicle and the likelihood of claims.

Reduced risk means fewer claims, which ultimately leads to a lower premium.

4. Customization

Special covers offer the flexibility to customize your insurance policy as per your requirement. This entails that you pay only for the coverage you need. Customization results in cost savings on those unnecessary covers that you may not require.

Common Types of Special Covers

Here are some popular special covers that you can add to your insurance policy to save money on premiums:.

1. Comprehensive Cover

Comprehensive insurance is a type of policy that provides coverage for damage caused by non-collision events like theft, vandalism, natural disasters or weather-related damage.

Comprehensive cover proves very beneficial as it covers a vast array of losses and damages that could raise the premium if taken up separately.

2. Collision Cover

Collision insurance covers accidents that occur due to hitting a stationary object, another car, or rolling over. Most accidents on the road are bound to have at least one vehicle under collision care coverage.

This means that adding this to your policy can help you reduce the cost of your insurance coverage.

3. Personal Injury Protection (PIP) Cover

This special cover provides coverage for the medical expenses of the owner and the passengers of the car involved in an accident. Some States mandate PIP coverage.

However, even if your state does not mandate, adding it to your policy can help alleviate hefty medical expenses owing to a car accident.

4. Uninsured and Underinsured Motorists

This special cover applies when an at-fault party in the accident has either inadequate or no liability insurance coverage at all. This coverage provides protection against damage/injuries caused by such motorists.

The coverage needs to be obtained as an additional add-on for an insurance policy.

5. Roadside Assistance Cover

Roadside Assistance is an extremely useful add-on for you if you are regularly driving. It covers specific damages caused by car breakdowns like flat tires, battery problems, and mechanical breakdowns.

It is an inexpensive add-on that can save you from unexpected costs.

Conclusion

Adding special covers to your car insurance policy may require you to pay a few extra bucks, but it is a minimal expense that can save you lots of money in the long run.

They serve an essential purpose in giving you tailored coverage for your car insurance policy, thus reducing your premium costs considerably. Make sure that you examine your insurance policy to see if there are ways to save by adding these special covers.