When you purchase a new car, one of the most important decisions to make is whether or not to invest in excess wear and tear insurance. It’s a commonly overlooked option, but it can provide invaluable protection in the event that your car starts showing signs of accelerated wear and tear. But what exactly is excess wear and tear insurance, and is it really worth it? In this blog post, we’ll explore the details of such a policy and help you decide whether or not it’s worth investing in. Read on to learn more!
What is Excess Wear and Tear Insurance?
When you lease a car, you make a commitment to maintain the vehicle in good condition and to not exceed the agreed-upon number of miles. But what happens if you do exceed the mileage or if there is normal wear and tear on the vehicle? This is where excess wear and tear insurance comes in.
Excess wear and tear insurance is designed to cover any damages to the vehicle that are above and beyond normal wear and tear. This can include things like excessive mileage, dents or scratches, interior damage, or tire damage. The goal of this insurance is to help you avoid having to pay for repairs or replacements when you return the car at the end of your lease.
So, is excess wear and tear insurance worth it? That depends on a few factors. First, consider how much coverage you need. If you only plan on driving a few thousand miles over the course of your lease, then you may not need this coverage. But if you think you might go over the mileage limit or if you’re worried about damaging the car, then excess wear and tear insurance could be a good investment.
Another factor to consider is how much your car is worth. If it’s a high-end vehicle, then excess wear and tear insurance could save you thousands of dollars in repairs or replacement costs. But if your car is more modestly priced, then the cost of the insurance may not be worth it.
How Does Excess Wear and Tear Insurance Work?
Excess wear and tear insurance is designed to protect your vehicle from the effects of normal wear and tear. This type of insurance can help you avoid unexpected repair bills, as well as the cost of having to replace your vehicle prematurely.
There are two main types of excess wear and tear insurance: comprehensive and collision. Comprehensive coverage will protect your vehicle against all types of damage, while collision coverage will only cover damage caused by an accident.
Most excess wear and tear policies have a deductible, which is the amount you will have to pay out-of-pocket before your insurance coverage kicks in. The higher your deductible, the lower your monthly premium will be.
To decide if excess wear and tear insurance is right for you, consider how much you drive, how often you use your vehicle for business purposes, and how old your vehicle is. If you don’t use your car very often or if it’s relatively new, you may not need this type of coverage. However, if you rely on your car for work or have an older model that isn’t as reliable, excess wear and tear insurance could save you a lot of money in the long run.
What Does Excess Wear and Tear Insurance Cover?
One of the most common questions we get asked is, “What does excess wear and tear insurance cover?”
This type of insurance is designed to cover the cost of repairs or replacements that are required as a result of normal wear and tear on your rental property. This can include things like:
• replacing worn out carpet
• fixing holes in walls
• repairing or replacing damaged appliances
• fixing leaks in plumbing fixtures
While this type of insurance isn’t required, it can be a valuable way to protect your investment and keep your rental property in good condition.
How Much Does Excess Wear and Tear Insurance Cost?
The short answer is that the cost of excess wear and tear insurance will vary depending on your make, model, and year of car. In order to find out how much it will cost you, we recommend contacting your insurance company or agent for a quote.
Generally speaking, excess wear and tear insurance is fairly inexpensive. For example, let’s say you own a 2015 Honda Civic. The average cost of this type of insurance for this car would be about $100 per year. However, keep in mind that this is just an estimate and your rates may be different.
At the end of the day, whether or not excess wear and tear insurance is worth it is up to you. If you feel like you need this type of coverage, then we recommend getting a quote to see how much it would cost you. However, if you feel like you can live without it, then you may want to save yourself some money and forego this type of insurance.
Pros and Cons of Excess Wear and Tear Insurance
There are a few pros and cons to excess wear and tear insurance that you should be aware of before making a decision.
On the plus side, this type of insurance can give you some peace of mind knowing that if something does happen to your rental car, you will be covered. It can also save you money in the long run if you do have to make a claim, as it can cover things like tires, paint work, and other damages that may not be covered by your regular insurance policy.
On the downside, however, excess wear and tear insurance can be quite expensive. In addition, it is important to remember that this type of insurance only covers damages above and beyond normal wear and tear – so if you are careful with your rental car, you may not need it at all.
Should You Get Excess Wear and Tear Insurance?
If you’re considering whether or not to get excess wear and tear insurance, there are a few things you should keep in mind. First, this type of insurance is not required by law like auto liability insurance. Second, excess wear and tear insurance is designed to cover damages that occur above and beyond the normal wear and tear of your vehicle. This means that if you have an accident or your car is stolen, this type of policy will not cover the repairs or replacement cost.
So, should you get excess wear and tear insurance? Ultimately, the decision comes down to personal preference and your finances. If you feel comfortable self-insuring for these types of damages, then you may not need this coverage. However, if you want the peace of mind that comes with knowing you’re covered for any unforeseen circumstances, then excess wear and tear insurance may be worth the investment.
Conclusion
All in all, it’s important to weigh the pros and cons of excess wear and tear insurance when deciding whether or not to purchase it. If you’re considering a long-term lease with many years of driving, this coverage might be worth the extra money spent. On the other hand, if you don’t anticipate damage beyond normal wear and tear while leasing your vehicle, then you may want to save yourself some money by skipping out on this type of car insurance policy.