5 common auto insurance riders

By HUB SmartCoverage Team on October 10th, 2017

Canadians love to find ways to save money on their auto insurance. I don’t blame you guys. Auto insurance is mandatory and it can get ungodly expensive. According to The Globe and Mail, Ontario has the highest auto insurance rates in Canada, with the average annual premium sitting at $1544.86. No, not a typo. I got a lump in my throat as I typed the previous two sentences. Did you get a lump as well?

However, please be aware there are several ways to lower your premium and one of them is adding an auto insurance rider to your policy. An auto insurance rider is an addition to an auto insurance policy, which offers additional protection. Of course, the caveat is you pay an additional fee. Long-term, adding an auto insurance rider saves you more money and gives you additional protection for your beloved toy. Below are five common auto insurance riders.

Rental Car Insurance

This rider allows you the flexibility to use your car insurance when you rent a rental car. For example, let’s say you have to drive to Chicago for a family trip and you decide to rent a seven-seater van from Enterprise. When the Enterprise staff suggests you to buy insurance for your seven-seater van, you can politely decline it (or, you can giggle like a eight-year-old girl who has just seen her crush and run away). This rider lets you avoid buying rental car insurance when you rent a car.

Forgiveness for First At-Fault Accident

All of us know that each accident remains on our driving record for several years and increases our premiums. This rider will help you protect your good driving record and keep your premiums low. Heck, it is a guarantee that your premiums will not go up in the case of a first at-fault or party-at-fault accident according to InsurEye. Another authority, Auto Insurance Quote,states you may need a clean driving record for 5-6 years if you want to add this rider

Satellite Program Endorsement

I like this one personally because I have been in this situation before. If you have been driving for several years, you must have experienced your car breaking down at least once. Or, how about a flat tire? If you have not, you will. RBC insurance states, the satellite program endorsement is a comprehensive emergency roadside and driver assistance program. Dear reader, please add this rider. You will thank me later.

Waiver of Depreciation

This rider guarantees that no depreciation will be applied with respect to your new vehicle for 24 months. In simple words, you will get back the total amount that you paid for it. Plus, it entitles you to have it repaired with original manufacturer parts if damaged.

Loss of Vehicle Use Endorsement

According to RBC insurance, theLoss of Vehicle Use Endorsement can help cover the cost of alternate transportation if your vehicle is being repaired or replaced due to a covered risk. For instance, it can cover the costs for a rental vehicle if yours is damaged. Additionally, it can also cover the costs of use of public transportation, taxis, buses, etc.

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