Waiver of premium rider is an insurance policy that helps in covering the cost of vehicle repairs if the car is damaged or stolen. There are different types of waiver of premium riders available for various types of vehicles.
There are two types of waivers of premium riders:
Non-owner’s coverage: In this case, you are covered under the owner’s car insurance and the cost of the repair will be paid by the insurance company. This type of coverage is not compulsory, but if you want to have it then you can go for it.
Owner’s coverage: In this case, you will be covered under your own car insurance and the cost of the repair will be paid by the insurance company. If you want to cover your vehicle in this way then you need to make a separate insurance policy with your insurer.
In both the cases, you need to pay a nominal amount as a premium. The amount of premium depends on the value of the vehicle and the kind of coverage that you have chosen.
Waiver of premium riders are beneficial for the following reasons:
It helps you to save money on the repair bills: If your vehicle is stolen or damaged, then you can get the car repaired at a cheaper rate by opting for a waiver of premium rider. This is because the insurance company will not be paying for the repair.
You will get a discount on your insurance premiums: If you are going to buy a new car, then you can go for a waiver of premium rider to reduce your insurance premiums. The reason behind this is that if your vehicle is covered under your own insurance policy then you will not have to pay any premium.
It is a compulsory cover:
If you are driving a car which is owned by someone else and if it is stolen or damaged then the owner will take care of it. In such a case, you will have to pay the cost of the repair and the insurance company will cover it.
Conclusion:
Waiver of premium rider is a compulsory cover in every vehicle. It helps you to save money on the repair bills and it also helps you to reduce your insurance premiums. If you are thinking about buying a new car then you must opt for this cover.