What It Means To Be An Additional Interest Insured
The various terms and lingo of your car insurance policy can be confusing. Despite the fact that it may seem a daunting task, educating yourself on the various types of car insurance coverage available to you is very beneficial. Studying your policy might yield some unexpected findings and even savings, as many drivers are unaware of the types of coverage that they're paying for on a monthly basis. When reviewing coverage, most drivers find themselves holding some type of "additional interest insured" coverage on their policies – a type of coverage can be required for leased vehicles. Here's a look into what additional interest insured coverage is and how it provides additional protection for motorists.
Basically, "additional interest insured" is an insurance term that indicates coverage for individuals other than the policyholder who might be named in a lawsuit after an accident. It's required coverage in many leased automobile policies because the company that's providing the loan wants protection in the event of an accident. If a crash were to occur at the fault of the policyholder, all other people in the accident could potentially be covered under his car insurance policy if the policy is additional interest insured. This can include anyone riding in the car with the policyholder – a common application of the term. When purchasing your car insurance policy, clarify with your agent whether this coverage is automatically included, as many companies automatically do.
If you're not leasing a vehicle, you might still consider purchasing a car insurance policy that's additional interest insured. The extra coverage will protect you financially if you're involved in a car accident that results in a lawsuit. Despite the fact that not choosing to add this sort of coverage to your policy can result in lowered premiums, it also puts you at risk for not being sufficiently covered. Additional interest insured coverage is a wise purchase for all motorists. Safe drivers should especially consider an additional interest insured car insurance policy, as the purpose of car insurance in the first place is to protect a person in the event of the unexpected.
Read over your car insurance policy to find out whether your plan is additional interest insured. If you have any other questions about the coverage (or any coverage that you suspect you're missing) contact your insurance agent for clarification. Remember that auto insurance law is different from state to state, and your insurance requirements might be higher or lower depending on where you live.
By examining your car insurance policy, you can easily determine how well covered you are, and whether additional coverage such as additional interest insured is necessary.