What are all these coverages listed on my auto insurance policy?

"I was looking at my car insurance because my rates keep going up and I see all these costs for different optional coverages: comprehensive, collision, rental reimbursement. Do I really need all this coverage if it is optional?"

“If you are still making payments on the car, the lender generally requires that you keep full coverage (comprehensive and collision) on the vehicle until it is paid off. Even if the car is paid off, you may want to keep some or all of this coverage in place, depending on the vehicle’s value and condition.
Collision coverage pays for damage to your vehicle caused by hitting another vehicle or object, regardless of fault.
Comprehensive coverage pays for damage to your vehicle that’s the result of fire, theft, vandalism, falling objects, and some other non-collision causes.
Rental reimbursement coverage helps pay for the cost of a rental vehicle while your vehicle is being repaired as a result of a covered claim. Some repair shops offer a free rental vehicle if you use them for your insurance claim, so you may be able to remove rental from your policy.
You can also look into adjusting your collision and comprehensive deductibles to reduce your insurance cost, as long as you still meet the minimum requirements of your lienholder.”
Shannon Martin
Answered on Apr 19, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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