Additional Car Insurance Coverage You Should Consider Purchasing

reviewing insurance documentsUnlike other states, Minnesota car crash victims generally turn to their own insurance policies first to obtain basic medical and wage loss compensation. They can file a claim against their personal injury protection (PIP) coverage.

Minnesota also requires you to buy uninsured/underinsured motorist coverage.  If you are hurt by an uninsured driver, or a driver who does not have enough liability coverage, you can make a second claim for compensation to help recoup your losses.

There are additional, optional coverages available for purchase for Minnesota drivers. If you can afford these coverages, they could help you avoid the financial catastrophe that often results from a crash.

Collision and Comprehensive Coverage

Repairing your car can quickly become very expensive, particularly if the body sustains serious damage or engine components need to be replaced.  In addition, if there is a dispute about who is at fault, the other driver’s insurance may deny fixing your car until fault has been established.

Not having a functioning vehicle for even a few days can make life very difficult, as you need to figure out how to get to and from work, go out to run errands and transport children. Even if your policy has rental car coverage, that coverage may run out before your vehicle is fixed.

Your PIP, uninsured and underinsured coverages do not pay for fixing your vehicle.

However, collision coverage would pay for damage to your vehicle from the crash. Fault does not matter, and the coverage even pays for damage caused in a crash with an object. While this coverage is technically optional, lenders often require drivers to purchase this coverage before approving a car loan.

Another optional coverage is comprehensive, which pays for losses that do not result from a collision. For example, a tree branch falls on your car or your car is stolen or damaged in a fire. These are all examples of damages that may be covered by comprehensive coverage. Damage from a crash with a deer or other wild animal may also be covered.

Roadside Assistance Coverage

If you need to call a tow truck to tow your vehicle, change a flat tire or jump-start your battery, you can use this coverage to help pay for it. The cost of towing is often calculated on a cost-per-mile basis, so the cost could add up quickly if your vehicle needs to be towed a long distance.

Gap Coverage

Many people may not be aware of how easy it can be for a car to sustain such severe damage that the insurance company declares it a total loss. There is no exact formula, but if it costs more than 85% of the value of your car to fix, the insurance company will total it.  Unless you are in a relatively new car or the damage is mostly cosmetic in nature, the cost of repairing the damage could easily be more than your vehicle is worth.

If you are still paying off the loan on your car and it is declared a total loss, you will still owe the balance of your loan.  Car values depreciate rapidly.  New car owners often face the worst situations as they have a brand-new car with a $30,000.00 loan, but within a week the car is only “worth” $25,000.00.  If your car is totaled, Gap Coverage will pay for the $5,000.00 “gap” between what is owed on the loan and what the car is currently worth.

You could also use gap coverage if you leased your vehicle. It usually does not cost much to add this to your insurance policy.

Contact TSR Injury Law for Help With Your Car Crash Claim

After a car crash, one of the most important decisions you can make is choosing a Bloomington auto accident lawyer to represent you as you seek compensation.

At TSR Injury Law, we have obtained over a billion in compensation on behalf of our clients, including many motor vehicle accident victims. Read more about what our satisfied clients have said about the services we provide on our testimonials page.

There is no risk in contacting us because there is no fee for your initial consultation and no obligation to hire us. We also do not get paid for our services unless you receive compensation.

Have questions? Call TSR Injury Law today at (612) TSR-TIME.

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