December 22, 2025 • 14 mins
Optional Endorsements On Auto Policies - What Are They And Do I Need One?
Think your auto policy has you covered from every angle? We put that assumption to the test and show where the real gaps live—then walk through the endorsements that actually fix them. From rental car reimbursement to roadside assistance to gap coverage, we share plain-English guidance that helps you avoid surprise bills and stressful weeks without wheels.
We start by demystifying what an endorsement is and why “full coverage” is more myth than reality. Then we dig into rental car reimbursement: when it pays, when it doesn’t, and how to set realistic daily and total limits so you’re not stranded at the counter. Next, we tackle roadside assistance and the new reality of claim frequency. Multiple small tows can nudge your rates up or complicate a carrier switch, so we compare insurer roadside to auto clubs like AAA and outline a balanced approach that protects your wallet and your insurability.
Finally, we focus on gap coverage, the quiet safeguard for financed vehicles. If your car is totaled and the loan balance is higher than the insurer’s payout, gap bridges that difference so you don’t carry debt on a car you no longer have. We explain when gap makes the most sense, how to weigh lender-sold vs. insurer-sold options, and why long loan terms or small down payments make this endorsement a smart buy. Throughout, we share practical tips on pricing, underwriting trends, and how to tailor add-ons to your life stage, commute, and budget.
If you’ve wondered which extras are worth paying for—and which to skip—you’ll walk away with a clear checklist to decide. Enjoy the conversation, then subscribe, share with a friend who’s shopping coverage, and leave a quick review to help others find the show.
To learn more about The Walters Agency visit:
https://www.brightway.com/agencies/tn/knoxville/0237/team
The Walters Agency
7009 Asheville Hwy
Knoxville, TN 37924
423-417-2070
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:03):
Welcome to the Walters Agency Podcast, where
insurance meets peace of mind.
Hosted by licensed insuranceagent and owner Timothy Walters,
we're here to help families,homeowners, and small business
owners throughout East Tennesseeprotect what matters most.
Our mission?
Creating win-win-win solutionsfor insurance.
(00:24):
Let's dive in.
SPEAKER_03 (00:27):
Auto insurance isn't one size fits all.
Let's explore how endorsementscan change your coverage.
Welcome back, everybody.
Skip Monty here in the studiowith Mr.
Tim Walters, licensed insuranceagent and owner of the Walters
Agency.
Tim, how's it going?
SPEAKER_01 (00:44):
Doing well, Skip.
How are you doing?
SPEAKER_03 (00:47):
Doing just fine.
Ready to get through theholidays and make it to the
other side and start gettingwarm again in daylight earlier.
SPEAKER_01 (00:56):
I know, I know.
I this this this darkness when Iget up and when I go home is
killing me.
SPEAKER_03 (01:02):
Oh yeah.
Yeah, I can't I can't take it.
I can't take it.
SPEAKER_02 (01:06):
Oh my god.
So uh I I like the ideasometimes of moving to Alaska,
but I just I couldn't do it.
There's no way that this wouldkill me.
SPEAKER_03 (01:16):
No, no, especially.
I mean, we're just talking anhour here, so yeah, Alaska.
That's that's extreme.
Well, let's get into today'sconversation.
Optional endorsements on autopolicies.
What are they?
And do I need one?
SPEAKER_02 (01:30):
Yeah, no, Skip.
Uh uh, so the the question theanswer to that question can be
yes or no depending on yoursituation.
And for anybody who's watchingthis and they're not sure what
an endorsement on insurancepolicy is, it's just it's just
something that's extra that'snot standard with the policy.
So it's like a little littlesomething extra, a little extra
coverage that you pay some morepremium for uh for a protection
(01:53):
that's not you know on thestandard set of coverages.
So for auto insurance, yourstandard coverage is going to be
your liability, right?
And then uh, you know, you mighthave you might need to get uh
comprehensive and collisioncoverage to cover your physical
damage coverage on your vehicleitself, especially if you have a
lien on the vehicle, if there'sa loan on it.
(02:14):
Uh that may not be optional, uh,depending on your loan company.
Uh, you know, of course,uninsured motor vehicle
insurance technically is notrequired by a state NSC at this
time, but it it's on everypolicy that I write.
It's not optional.
If somebody doesn't want that ontheir policy, they're gonna have
to find another agent.
Uh, it is technically, you know,uh an endorsement, I guess you
(02:35):
could say.
Uh, but there are some uhendorsements that, you know, are
not are not necessarilyrequired, but they could be good
to have.
Uh, and again, it's all verysituational.
Um, you know, it could helpcover a gap in coverage.
And I actually brought a proptoday for this.
All right.
I don't know if the mirror onthe camera is gonna mess this
(02:56):
up, but it says mind the gap.
I bought this in London, Englandin 2004.
I've just been waiting for achance to wear it on camera.
So um, but so yeah, gaps in yourcoverage.
So when people think aboutinsurance, a lot of times people
know that the the term fullcoverage.
I've got full coverage.
I hate that term.
(03:17):
Um, but it's colloquial, that'swhat people know.
Um people think that everythingthat could possibly happen in
their vehicle is somehow coveredby their insurance.
It's not.
I'm I'm sorry, guys, if you're II don't want to bust your
bubble.
You know, your insurance is acontract.
There's some particularitiesabout it.
(03:37):
So some things that a lot oftimes people think are covered
that are not unless they'reendorsed are things like rail
car reimbursement.
So if you are involved in anaccident, whether it's your
fault or somebody else's fault,uh, and your vehicle is disabled
or totaled, uh, let's say,you're still gonna need a car to
get around.
You got to go to and from work,you gotta get to and from the
(03:59):
grocery store, you got this isAmerica.
We use our cars to live ourlives.
Um rail cars tend to be a littlebit expensive.
Now, some people, you know, thatexpense they can pay out of
pocket.
It's not really an issue.
Some people might need some helpfrom their insurance.
If you have not got thatendorsement on your policy when
(04:20):
the accident occurs, yourinsurance company is not going
to pay for that because it's notin the contract.
You didn't pay the premium forthat uh for that coverage.
Um, so it's always a good ideaif that's something you would be
interested in.
Ask your agent.
Uh, I'm assuming you have anagent.
Uh you should.
Uh, ask your agent, hey, is thiscoverage on my policy?
(04:44):
If it's not, ask them what itwould cost to add it on.
It's usually not terriblyexpensive unless you have a lot
of claims on your history.
Um, same thing goes for uh uhroadside assistance, uh,
emergency roadside assistance.
That's kind of like triple A.
Uh you know, basically, if uhyou know your vehicle's disabled
uh you know in an accident, orit could just be, you know, uh
(05:06):
you break down, you run out ofgas, you blow a tire, or
whatever you got to call it atow truck, you know, get a
gallon of gas delivered to you,get your battery uh charged, you
know, whatever you know, theroadside service is, your
insurance will help pay for thatcost up to a certain limit.
And there's different limitsavailable uh on those
endorsements with most autoinsurance policies.
(05:27):
I will say, I'm gonna put acaveat out here, is in the last
few years, I've noticed uhcompanies really paying a lot of
attention to the number ofclaims that are paid out through
that particular coverage.
And claim frequency canactually, whether or not it was
an expensive claim, if it's likefree$75 or$100 claims over the
(05:47):
course of a couple of years,that could actually make it
difficult for you to get newinsurance with a different
carrier.
And it could also affect yourrates in the future.
So what I've been advisingpeople to do uh is to
investigate uh like an autoclub, like AAA is the most
well-known one.
I'm not I'm not an agent forAAA.
I am a customer of AAA for thelast since I was 18, so however
(06:12):
long that was, longer than Icare to admit.
Um, but uh, you know, they don'tpay me.
But uh, you know, auto clubslike that are a really good
solution.
They're usually maybe a couplehundred bucks a year for the
basic services, and they canreally come through to for you
in those situations, and thatdoesn't go on your insurance
history.
So I've really been advising myclients instead of putting, you
(06:33):
know, taking that on theirinsurance, just to purchase it
through an auto club like likeAAA.
And there's other auto clubs outthere, of course.
I would say the the other, thethird uh most option, uh most
often chosen uh endorsement thatI come across is um, well,
different carries call itdifferent things, but it's
basically uh uh loanreimbursement assistance uh or
(06:57):
gap coverage.
Um so if you've got a loan on avehicle, a lot of times with the
loan you can purchase what'scalled gap coverage.
And basically what that means,we all know like if you go out
and you buy a vehicle and ifit's fairly new or even maybe a
newer or used vehicle, uh, youmight get a loan and the value,
you know, the face value on yourloan, uh the vehicle, the
(07:19):
vehicle's value is gonna go downfaster than you can repay that
loan.
So you're gonna be upside downon that if you have a total
loss.
So you can actually purchase uhbasically through either through
the loan, typically, a lot oftimes, and I recommend this
honestly, uh, because it'susually less expensive to get it
through your insurance, butbuying it through the loan
itself.
Uh, or, you know, if you don'tdo that, or maybe if if it was
(07:42):
really expensive to buy itthrough the loan, you can talk
to your auto insurance agent andask them if that coverage is
available with the carry youhave for your pop uh your
vehicle.
And uh typically in, you know,most auto insurance companies uh
do have coverage that willassist you with uh paying the
gap between the value of thevehicle when the accident occurs
(08:04):
and if you're upside down onthat loan, you know, to kind of
bridge that gap between what youowe and what they're gonna pay
out for the total loss.
So definitely something to lookinto.
It's not terribly expensive onmost insurance policies if you
haven't had a lot of claims.
Now, if you had a lot ofcollision claims or something
like that, or total loss claims,it can be more expensive or it
may not even be available.
(08:26):
But you know, most of the timeit's available and it's not
terribly expensive.
I definitely recommend it if youhave a loan on the vehicle and
you don't have gap uh coveragethrough your loan.
So that's the third one.
SPEAKER_03 (08:39):
Mind the gap.
SPEAKER_02 (08:40):
You might mind the gap.
SPEAKER_03 (08:41):
Mind the gap.
So how do you mention you knowit could be expensive, maybe
not?
How do endorsements impact theoverall cost of a policy?
SPEAKER_02 (08:50):
It depends.
Uh, like I said, it it dependsuh, you know, on your loss
history, you know, as as aninsured.
Uh it depends on the carrier'suh loss appetite.
Um it depends on what what kindof market they're trying to
operate in, uh, honestly.
So um, you know, differentcarriers are gonna you know have
different prices for differentendorsements for different
(09:11):
people.
But uh I've said it before.
Insurance is very, very, verymuch uh individually tailored
these days uh in a lot of ways,uh more much more so than it was
20 or 30 years ago.
Uh it's gonna be typically lessexpensive for you to get those
endorsements if you've had noloss history, you know, uh as
opposed to you know if you'vehad multiple at fault accidents
(09:33):
or something like that, whereit's statistically more likely
that the insurance company isgonna pay out for those
endorsements.
Yeah, uh they're they're gonnacharge you more for that.
SPEAKER_03 (09:41):
With that in mind, what uh advice would you give
someone trying to decide if a ifan endorsement is worth it or
not?
SPEAKER_02 (09:51):
Uh I I would just, you know, I would say, hey, look
at your situation.
So just we'll go back to theexample of gap coverage.
Um if you have purchased avehicle um and you have, you
know, an expectation that you'regonna own it for a while and
that vehicle is going todevalue.
I mean, it is, you know, we allknow that.
(10:13):
Um and maybe you have a lowmonthly payment and you've got a
long term, yeah.
I don't know.
I've seen I've seen some termsout there now for like 80
months, which boggles my mind.
Uh, but I've seen them outthere.
Uh, if you're gonna be paying onthis vehicle for 80 months, um
(10:33):
that is gonna be extremelydevalued uh very shortly, you
know, within the lifetime ofthat loan.
So unless you're in a positionwhere you could pay off the
entire loan at, you know, thedrop of a hat if you have a
total loss, I would definitelyrecommend getting gap coverage,
either through the loan itselfor through your insurance
(10:53):
policy.
I mean, that would just besomething that would be common
sense to add on to yourprotection plan.
Um, same with uh uh rental carreimbursement.
Uh if you're a single dude likeme, uh, and maybe you've only
got one vehicle and you've gotto have a vehicle to get to and
from work, and your vehicle isdisabled, you know, in an
(11:14):
accident, and maybe you don'thave the cash on hand to pay for
a rent car for a long period oftime, it would be helpful for
you to have help with yourinsurance uh for that.
So you know you pay a little bitextra on your insurance every
month.
And if something like that doeshappen, then you don't have to
eat the full upfront cost ofpaying for that rental vehicle.
Now, you know, I'm I'm I'm outhere telling you, I don't know,
(11:37):
it's been what, three yearssince I had to rent a vehicle
and that was crazy expensive.
Um, but you know, if you caneven have your insurance help
pay for half of that, you know,that makes it more financially
uh less of a financial blow.
You know, maybe you can, youknow, instead of not eating, you
know, once or twice a week,maybe you just have ramen every
(11:58):
night or something like that.
I mean, every everybody'sfinancially stressed.
Uh, a lot of people are livingpaycheck to paycheck.
Um, and I even the extra cost ofan endorsement like that could
very well, you know, put you ina better financial position
where you're be able to get toand from work while your car is
in the shop or you're shoppingfor a new one if it's a total
loss than if you didn't havethat coverage at all.
(12:22):
So, you know, everybody knowstheir financial situation, you
know, better than I do as anagent, you know, looking from
outside in.
I just ask people to consider itand you know be honest with
themselves.
And, you know, we can we quotewith and without the
endorsements, and people can youknow make their own decisions
about whether it's somethingthey want to uh pay for.
SPEAKER_03 (12:41):
Well, I gotta tell you, I'm I'm I'm I just rented a
car.
My wife's car broke down.
It didn't, she didn't have anaccident, but it broke down, and
she was leaving the next day togo to uh another state for a
wedding event for our kids.
And so I ended up renting a car,and for three nights it was like
200 and almost 300 bucks.
Yeah.
(13:02):
And uh yeah, and so I didn'teven think about calling my
insurance company to see if theywould have covered it.
I mean, my car it just brokedown.
It didn't well, there was noact.
SPEAKER_02 (13:10):
So just FYI, that probably wouldn't be covered
under insurance.
So insurance basically, uh, ifyou have a if you have rental
car reimbursements, it's reallyfor uh replacement vehicle if
you're if you're if it's likefor a claimable loss.
So, you know, mechanicalbreakdown is typically not
considered a uh claimable lossuh on insurance.
(13:31):
If your wife had had anaccident, you know, she if she'd
hit somebody or somebody had hither and you lost the use of the
vehicle that way, that would besomething where that endorsement
would come into play.
SPEAKER_03 (13:42):
Well, Tim, I can't tell you how much I appreciate
you breaking all this down andshowing us how endorsements can
be a good option and give youflexibility with your audit
policy.
SPEAKER_01 (13:51):
All right, yeah, I appreciate it, Skip.
SPEAKER_03 (13:53):
Yep, thank you.
And uh while you mind the gap,we'll see you in the next
episode.
Absolutely.
Thank you.
SPEAKER_00 (14:03):
That's a wrap on this episode of the Walters
Agency Podcast.
Ready to find the right coveragefor your home, business, or
family?
Call or text 423-417-2070 for afree 20 minute consultation.
Until next time, stay covered,stay protected, and keep winning
(14:24):
with the Walters Agency.
Welcome to the Walters Agency Podcast, where
insurance meets peace of mind.
Hosted by licensed insuranceagent and owner Timothy Walters,
we're here to help families,homeowners, and small business
owners throughout East Tennesseeprotect what matters most.
Our mission?
Creating win-win-win solutionsfor insurance.
(00:24):
Let's dive in.
SPEAKER_03 (00:27):
Auto insurance isn't one size fits all.
Let's explore how endorsementscan change your coverage.
Welcome back, everybody.
Skip Monty here in the studiowith Mr.
Tim Walters, licensed insuranceagent and owner of the Walters
Agency.
Tim, how's it going?
SPEAKER_01 (00:44):
Doing well, Skip.
How are you doing?
SPEAKER_03 (00:47):
Doing just fine.
Ready to get through theholidays and make it to the
other side and start gettingwarm again in daylight earlier.
SPEAKER_01 (00:56):
I know, I know.
I this this this darkness when Iget up and when I go home is
killing me.
SPEAKER_03 (01:02):
Oh yeah.
Yeah, I can't I can't take it.
I can't take it.
SPEAKER_02 (01:06):
Oh my god.
So uh I I like the ideasometimes of moving to Alaska,
but I just I couldn't do it.
There's no way that this wouldkill me.
SPEAKER_03 (01:16):
No, no, especially.
I mean, we're just talking anhour here, so yeah, Alaska.
That's that's extreme.
Well, let's get into today'sconversation.
Optional endorsements on autopolicies.
What are they?
And do I need one?
SPEAKER_02 (01:30):
Yeah, no, Skip.
Uh uh, so the the question theanswer to that question can be
yes or no depending on yoursituation.
And for anybody who's watchingthis and they're not sure what
an endorsement on insurancepolicy is, it's just it's just
something that's extra that'snot standard with the policy.
So it's like a little littlesomething extra, a little extra
coverage that you pay some morepremium for uh for a protection
(01:53):
that's not you know on thestandard set of coverages.
So for auto insurance, yourstandard coverage is going to be
your liability, right?
And then uh, you know, you mighthave you might need to get uh
comprehensive and collisioncoverage to cover your physical
damage coverage on your vehicleitself, especially if you have a
lien on the vehicle, if there'sa loan on it.
(02:14):
Uh that may not be optional, uh,depending on your loan company.
Uh, you know, of course,uninsured motor vehicle
insurance technically is notrequired by a state NSC at this
time, but it it's on everypolicy that I write.
It's not optional.
If somebody doesn't want that ontheir policy, they're gonna have
to find another agent.
Uh, it is technically, you know,uh an endorsement, I guess you
(02:35):
could say.
Uh, but there are some uhendorsements that, you know, are
not are not necessarilyrequired, but they could be good
to have.
Uh, and again, it's all verysituational.
Um, you know, it could helpcover a gap in coverage.
And I actually brought a proptoday for this.
All right.
I don't know if the mirror onthe camera is gonna mess this
(02:56):
up, but it says mind the gap.
I bought this in London, Englandin 2004.
I've just been waiting for achance to wear it on camera.
So um, but so yeah, gaps in yourcoverage.
So when people think aboutinsurance, a lot of times people
know that the the term fullcoverage.
I've got full coverage.
I hate that term.
(03:17):
Um, but it's colloquial, that'swhat people know.
Um people think that everythingthat could possibly happen in
their vehicle is somehow coveredby their insurance.
It's not.
I'm I'm sorry, guys, if you're II don't want to bust your
bubble.
You know, your insurance is acontract.
There's some particularitiesabout it.
(03:37):
So some things that a lot oftimes people think are covered
that are not unless they'reendorsed are things like rail
car reimbursement.
So if you are involved in anaccident, whether it's your
fault or somebody else's fault,uh, and your vehicle is disabled
or totaled, uh, let's say,you're still gonna need a car to
get around.
You got to go to and from work,you gotta get to and from the
(03:59):
grocery store, you got this isAmerica.
We use our cars to live ourlives.
Um rail cars tend to be a littlebit expensive.
Now, some people, you know, thatexpense they can pay out of
pocket.
It's not really an issue.
Some people might need some helpfrom their insurance.
If you have not got thatendorsement on your policy when
(04:20):
the accident occurs, yourinsurance company is not going
to pay for that because it's notin the contract.
You didn't pay the premium forthat uh for that coverage.
Um, so it's always a good ideaif that's something you would be
interested in.
Ask your agent.
Uh, I'm assuming you have anagent.
Uh you should.
Uh, ask your agent, hey, is thiscoverage on my policy?
(04:44):
If it's not, ask them what itwould cost to add it on.
It's usually not terriblyexpensive unless you have a lot
of claims on your history.
Um, same thing goes for uh uhroadside assistance, uh,
emergency roadside assistance.
That's kind of like triple A.
Uh you know, basically, if uhyou know your vehicle's disabled
uh you know in an accident, orit could just be, you know, uh
(05:06):
you break down, you run out ofgas, you blow a tire, or
whatever you got to call it atow truck, you know, get a
gallon of gas delivered to you,get your battery uh charged, you
know, whatever you know, theroadside service is, your
insurance will help pay for thatcost up to a certain limit.
And there's different limitsavailable uh on those
endorsements with most autoinsurance policies.
(05:27):
I will say, I'm gonna put acaveat out here, is in the last
few years, I've noticed uhcompanies really paying a lot of
attention to the number ofclaims that are paid out through
that particular coverage.
And claim frequency canactually, whether or not it was
an expensive claim, if it's likefree$75 or$100 claims over the
(05:47):
course of a couple of years,that could actually make it
difficult for you to get newinsurance with a different
carrier.
And it could also affect yourrates in the future.
So what I've been advisingpeople to do uh is to
investigate uh like an autoclub, like AAA is the most
well-known one.
I'm not I'm not an agent forAAA.
I am a customer of AAA for thelast since I was 18, so however
(06:12):
long that was, longer than Icare to admit.
Um, but uh, you know, they don'tpay me.
But uh, you know, auto clubslike that are a really good
solution.
They're usually maybe a couplehundred bucks a year for the
basic services, and they canreally come through to for you
in those situations, and thatdoesn't go on your insurance
history.
So I've really been advising myclients instead of putting, you
(06:33):
know, taking that on theirinsurance, just to purchase it
through an auto club like likeAAA.
And there's other auto clubs outthere, of course.
I would say the the other, thethird uh most option, uh most
often chosen uh endorsement thatI come across is um, well,
different carries call itdifferent things, but it's
basically uh uh loanreimbursement assistance uh or
(06:57):
gap coverage.
Um so if you've got a loan on avehicle, a lot of times with the
loan you can purchase what'scalled gap coverage.
And basically what that means,we all know like if you go out
and you buy a vehicle and ifit's fairly new or even maybe a
newer or used vehicle, uh, youmight get a loan and the value,
you know, the face value on yourloan, uh the vehicle, the
(07:19):
vehicle's value is gonna go downfaster than you can repay that
loan.
So you're gonna be upside downon that if you have a total
loss.
So you can actually purchase uhbasically through either through
the loan, typically, a lot oftimes, and I recommend this
honestly, uh, because it'susually less expensive to get it
through your insurance, butbuying it through the loan
itself.
Uh, or, you know, if you don'tdo that, or maybe if if it was
(07:42):
really expensive to buy itthrough the loan, you can talk
to your auto insurance agent andask them if that coverage is
available with the carry youhave for your pop uh your
vehicle.
And uh typically in, you know,most auto insurance companies uh
do have coverage that willassist you with uh paying the
gap between the value of thevehicle when the accident occurs
(08:04):
and if you're upside down onthat loan, you know, to kind of
bridge that gap between what youowe and what they're gonna pay
out for the total loss.
So definitely something to lookinto.
It's not terribly expensive onmost insurance policies if you
haven't had a lot of claims.
Now, if you had a lot ofcollision claims or something
like that, or total loss claims,it can be more expensive or it
may not even be available.
(08:26):
But you know, most of the timeit's available and it's not
terribly expensive.
I definitely recommend it if youhave a loan on the vehicle and
you don't have gap uh coveragethrough your loan.
So that's the third one.
SPEAKER_03 (08:39):
Mind the gap.
SPEAKER_02 (08:40):
You might mind the gap.
SPEAKER_03 (08:41):
Mind the gap.
So how do you mention you knowit could be expensive, maybe
not?
How do endorsements impact theoverall cost of a policy?
SPEAKER_02 (08:50):
It depends.
Uh, like I said, it it dependsuh, you know, on your loss
history, you know, as as aninsured.
Uh it depends on the carrier'suh loss appetite.
Um it depends on what what kindof market they're trying to
operate in, uh, honestly.
So um, you know, differentcarriers are gonna you know have
different prices for differentendorsements for different
(09:11):
people.
But uh I've said it before.
Insurance is very, very, verymuch uh individually tailored
these days uh in a lot of ways,uh more much more so than it was
20 or 30 years ago.
Uh it's gonna be typically lessexpensive for you to get those
endorsements if you've had noloss history, you know, uh as
opposed to you know if you'vehad multiple at fault accidents
(09:33):
or something like that, whereit's statistically more likely
that the insurance company isgonna pay out for those
endorsements.
Yeah, uh they're they're gonnacharge you more for that.
SPEAKER_03 (09:41):
With that in mind, what uh advice would you give
someone trying to decide if a ifan endorsement is worth it or
not?
SPEAKER_02 (09:51):
Uh I I would just, you know, I would say, hey, look
at your situation.
So just we'll go back to theexample of gap coverage.
Um if you have purchased avehicle um and you have, you
know, an expectation that you'regonna own it for a while and
that vehicle is going todevalue.
I mean, it is, you know, we allknow that.
(10:13):
Um and maybe you have a lowmonthly payment and you've got a
long term, yeah.
I don't know.
I've seen I've seen some termsout there now for like 80
months, which boggles my mind.
Uh, but I've seen them outthere.
Uh, if you're gonna be paying onthis vehicle for 80 months, um
(10:33):
that is gonna be extremelydevalued uh very shortly, you
know, within the lifetime ofthat loan.
So unless you're in a positionwhere you could pay off the
entire loan at, you know, thedrop of a hat if you have a
total loss, I would definitelyrecommend getting gap coverage,
either through the loan itselfor through your insurance
(10:53):
policy.
I mean, that would just besomething that would be common
sense to add on to yourprotection plan.
Um, same with uh uh rental carreimbursement.
Uh if you're a single dude likeme, uh, and maybe you've only
got one vehicle and you've gotto have a vehicle to get to and
from work, and your vehicle isdisabled, you know, in an
(11:14):
accident, and maybe you don'thave the cash on hand to pay for
a rent car for a long period oftime, it would be helpful for
you to have help with yourinsurance uh for that.
So you know you pay a little bitextra on your insurance every
month.
And if something like that doeshappen, then you don't have to
eat the full upfront cost ofpaying for that rental vehicle.
Now, you know, I'm I'm I'm outhere telling you, I don't know,
(11:37):
it's been what, three yearssince I had to rent a vehicle
and that was crazy expensive.
Um, but you know, if you caneven have your insurance help
pay for half of that, you know,that makes it more financially
uh less of a financial blow.
You know, maybe you can, youknow, instead of not eating, you
know, once or twice a week,maybe you just have ramen every
(11:58):
night or something like that.
I mean, every everybody'sfinancially stressed.
Uh, a lot of people are livingpaycheck to paycheck.
Um, and I even the extra cost ofan endorsement like that could
very well, you know, put you ina better financial position
where you're be able to get toand from work while your car is
in the shop or you're shoppingfor a new one if it's a total
loss than if you didn't havethat coverage at all.
(12:22):
So, you know, everybody knowstheir financial situation, you
know, better than I do as anagent, you know, looking from
outside in.
I just ask people to consider itand you know be honest with
themselves.
And, you know, we can we quotewith and without the
endorsements, and people can youknow make their own decisions
about whether it's somethingthey want to uh pay for.
SPEAKER_03 (12:41):
Well, I gotta tell you, I'm I'm I'm I just rented a
car.
My wife's car broke down.
It didn't, she didn't have anaccident, but it broke down, and
she was leaving the next day togo to uh another state for a
wedding event for our kids.
And so I ended up renting a car,and for three nights it was like
200 and almost 300 bucks.
Yeah.
(13:02):
And uh yeah, and so I didn'teven think about calling my
insurance company to see if theywould have covered it.
I mean, my car it just brokedown.
It didn't well, there was noact.
SPEAKER_02 (13:10):
So just FYI, that probably wouldn't be covered
under insurance.
So insurance basically, uh, ifyou have a if you have rental
car reimbursements, it's reallyfor uh replacement vehicle if
you're if you're if it's likefor a claimable loss.
So, you know, mechanicalbreakdown is typically not
considered a uh claimable lossuh on insurance.
(13:31):
If your wife had had anaccident, you know, she if she'd
hit somebody or somebody had hither and you lost the use of the
vehicle that way, that would besomething where that endorsement
would come into play.
SPEAKER_03 (13:42):
Well, Tim, I can't tell you how much I appreciate
you breaking all this down andshowing us how endorsements can
be a good option and give youflexibility with your audit
policy.
SPEAKER_01 (13:51):
All right, yeah, I appreciate it, Skip.
SPEAKER_03 (13:53):
Yep, thank you.
And uh while you mind the gap,we'll see you in the next
episode.
Absolutely.
Thank you.
SPEAKER_00 (14:03):
That's a wrap on this episode of the Walters
Agency Podcast.
Ready to find the right coveragefor your home, business, or
family?
Call or text 423-417-2070 for afree 20 minute consultation.
Until next time, stay covered,stay protected, and keep winning
(14:24):
with the Walters Agency.
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