There is compulsory and optional coverage indeed, but the options remain in small number unless customers purchase the policy from a primary insurer.
The reason is that big insurance companies can afford to offer discounts and endorsements because they have the financial power to do that. For policyholders, purchasing from major names also brings the peace of mind for the companies have the financial resources at their disposal.
Let us take a look at the offerings from Citizens Insurance Company of America, a subsidiary of The Hanover Group.
Although it is possible to choose special coverage and combine it with another, Citizens Insurance offers auto coverage options in 3 packages including the Platinum Auto Essential, Platinum Auto Advantage, and the top of the range Platinum Auto Elite.
Each package comes with an additional Endorsement Package as well. All packages are additions to the basic auto coverage which consists of the following:
- Liability – Transportation Expense
- Collision – Roadside Assistance
- Comprehensive – Medical Payments/Personal Injury Protection
Platinum Auto Essential
It is the base insurance policy from the company consisting of the mandatory coverage depending on the state, and additional features including:
- Waiver of Deductible: in the unfortunate event that accident destroys more than one property (car and home or two cars), policyholders only pay the highest policy deductible. The company waives all other deductibles. This feature applies when a policyholder has multiple properties under the protection of the enterprise.
- Restraint System Replacement: if an insurance peril (both accident and nonaccident causes) brings damages to child restraint system, the company helps to replace the system with no deductible. Replacement is worth a maximum of $300.
- Glass Coverage: when the safety glass breaks due to accident or non-accident perils, policyholders get repair services free of charge with no deductible as long the company approves the repair shop they choose. If policyholders insist on repairing the glass in another repair shop, Citizens Insurance still covers the loss to a reasonable amount depending on the total cost.
In case replacement is necessary, a deductible of $100 applies.
- OEM (Original Equipment Manufacturer): all OEM parts of policyholders’ vehicles (and two previous models) are also a subject of the financial protection.
- Mechanical Parts: non-body mechanical parts, such as batteries and tires, are under the protection of this coverage without deduction for depreciation.
- Ultimate Rental: this is transportation expense coverage. Policyholders can rent vehicles for as long as it takes until their cars come out of the repair shop. Maximum amount reaches $3,000.
- Towing & Labor: additional to Roadside Assistance, this endorsement provides up to $75 coverage for Dubai Desert Safari keys replacement.
Platinum Auto Advantage
For complete protection, policyholders can choose the mid-range option, Platinum Auto Coverage, which consists of the following coverage types.
- New Car Replacement Guard: if a new car (either purchased or leased) is in complete loss within one year of ownership or 15,000 miles, replacement is available without deduction for depreciation. It means policyholder received the same amount as the price of the vehicle when he/she bought it.
- Newer Car Replacement: total damage on a car (more than one year of ownership or 15,000 miles) is subject to replacement as well. The insurer even pays the amount equal to the cash value of a newer model of the same car. However, maximum payment is 120% of the cash value of the car in total damage.
- Second Chance Accident Forgiveness: with this coverage endorsement, the first surchargeable accident in the last 36-month period is forgivable, meaning there is no increase in premium. It is as if the first accident within that time limit did not happen.
- Deductible Dividends: an immediate reward in the form of less expensive collision deductible because policyholders purchase this endorsement. A minimum deductible of $100 still applies, but the additional coverage opens the door for more saving.
Platinum Auto Elite
A complete package of them all is Platinum Auto Elite, which includes many additional protections unavailable from most insurers. Coverage options available from this package are as follows.
- Pet Injury Protection: a pet that sustains injuries due to accident also needs medical treatments from a veterinarian. With Pet Injury Protection, policyholders have up to $500 financial protection for veterinarian bills and up to $500 disposal bills.
- Rental Car Coverage: when a policyholder has to rent a car due to an immobile vehicle in the repair shop, it is not standard for an insurance company to provide protection for the rental car. The company, however, offers this service for the following situation:
- Loss-of-use: rental value until policyholder’s personal car is ready to use
- Diminished value: the difference in the motor vehicle resale value after the repair
- Reasonable fees: rental company’s expense to file claims for which policyholder is liable
- Trip Interruption: when during a drive policyholder’s car breaks down and is more than 100 miles from home, a reimbursement of up to $1,000 is available for:
- Travel expense to go back home or the destination
- Food and lodging
- Cost of returning the car to a garage or home
Rental Coverage Upgrade: <a website Insurance works with a network of car rental companies to allow policyholders choose the type and model of car to use when their vehicles are in repair due to an accident. Different models are available from large SUV to luxury cars.
