(Continued from Part 1 and Part 2.) In addition to liability, collision, and comprehensive coverage, there are a couple other options to choose from in the car insurance world. These include: Personal Injury Protection, Emergency Road Service (Towing), Rental Car Coverage, Full Glass Protection.
Personal Injury Protection
While Liability covers the other person’s vehicle, PIP covers the medical cost for the passengers in your vehicle, no matter who’s fault it was. Chances are if you already have decent health and disability insurance, you won’t need this coverage. Some states require a minimum amount, like mine. I’m just carrying the minimum.
Emergency Road Service (Towing)
It’s pretty obvious what this covers, but as always there are limits to what it covers. Some coverages only will cover the first 10 miles or so, and you have to pick up the rest. According to StateFarm.com, my policy includes:
1. Mechanical labor up to one hour at the place of its breakdown.
2. Towing to the nearest place where repairs can be made during regular business hours.
3. Towing the car out if it is stuck on or next to a public highway.
4. Delivery of gas, oil, loaned battery, or change of tire, but not the cost of such items.
5. Locksmith labor for up to one hour if you lose your key or lock it in your car.
It costs $10/year for me. AAA costs $55/year. Granted, AAA has other benefits for sure, and I haven’t compared the exact features, but I doubt it’s worth $45/year. I’m keeping this one.
Rental Car Coverage
This covers renting a car when your car is being repaired because of a covered accident. Often it only covers like $15 a day or 80% of the cost, depending on your level of coverage. This is only needed if you are at fault, since otherwise the other guy’s insurance with cover it. If somehow I did lose my car, most days I’m pretty sure I could work something out with my wife. Otherwise, I’d probably get a better price from Priceline or Hotwire. Not getting this.
Full Glass Protection
This option waives your Comprehensive deductible for windshield glass claims. So if a rock breaks your windshield, you get it replaced for free. It may be a good deal if you set your Comprehensive deductible really high and drive on the highway a lot. I know I’ve gotten 3 rock chips in my windshield in the last year. Either way, State Farm doesn’t offer Full Glass coverage (edit: in my state), so I’m out.
Armed with this info, I met with my State Farm agent and got some new quotes last week and also got a quote for my “new” car. I’m summarize in my next post.
By Jonathan Ping | Insurance | 5/30/05, 1:47pm