An auto insurance rider is an addition to an auto insurance policy that, as a rule, offers additional protection or features for an additional fee. Different companies may offer different riders and when getting your policy you need to understand which protection is already included in your insurance policy and which one you might need to add on top.
Examples of additional riders can be:
- Rental car substitute: A rental car that is paid for in case of an accident during a pre-defined period of time, or as long as your own car is being repaired (e.g. for 12 weeks)
- First accident forgiveness: A guarantee that your premiums will not go up in the case of a first at-fault or partly-at-fault accident
- Waiver of depreciation: A guarantee that no depreciation will be taken into account with respect to your new vehicle during a predetermined period of time, e.g. 24 months
- Rental car insurance: Right to use your car insurance when you operate a rental car (basically letting you avoid buying rental car insurance when you rent a car)
Depending on your situation you might add some riders on top of your existing policies. Some riders might be meaningful due to a particular location of your home e.g. earthquake coverage makes sense in many regions of British Columbia or in Quebec. Other riders depend on your personal situation e.g. you might want to add a jewelry protection after you made a proposal with an expensive engagement ring.
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