21.Gap insurance: This optional policy insures driver of a new car for difference between car's financed value and its fair market value. Should car be "totaled" during first few years after purchase, owner will be covered for amount still owed on car, rather than it's market value (which is often much lower). Because it covers only difference in value, this is a relatively inexpensive policy.

22.No-fault insurance: A no-fault policy usually will not require that someone be assigned blame in order for policyholder to receive his/her money. In no-fault states, insurance companies are required to have this type of policy. “No- fault insurance" is a general term that is used to describe any auto insurance system that both requires drivers to carry insurance for their own protection, and that places limitations on their ability to sue other drivers for damages. In an accident, under no fault laws, your auto insurance company will pay for your medical damages (up to your policy limits), regardless of who was at fault for accident. Any other drivers involved will be covered by their auto insurance policies. Under a pure no fault system, drivers would be completely covered by their own policy, and would be barred from ever suing another driver for damages. However, no state uses a pure system. Instead, all "no fault" states actually use parts of both no fault system and standard liability system (under which you're financially responsible for cost of damages you cause). States do this by permitting lawsuits in certain cases.

23.Rental car reimbursement coverage: It's an optional policy endorsement that helps pay cost of renting a car while your auto is being repaired for a covered event. (This means you usually need to carry collision and comprehensive to qualify.) Your premium is decided by amount of reimbursement you want per day.

24.Emergency roadside assistance insurance: It's an optional policy that covers cost of towing or immediate roadside repair (like fixing a flat or jump-starting battery). It does not cover costs of any repair done at a garage or service station, however. Consider AAA-type coverage instead.

25.Towing: This is an inexpensive add-on that provides towing and limited storage after an accident. No need if you have AAA-type coverage.

26.SR-22 filing: A document that shows proof of financial responsibility in case of a traffic violation. The SR-22 is actually a form that high-risk drivers may be required to file with state before they purchase car insurance. It requires provider to notify state should policy be terminated or canceled. DUIs, multiple speeding tickets, and driving without insurance or valid license are all reasons a SR-22 may need to be filed.The requirement usually lasts for three years after initial event.

27.Umbrella policy: It is additional liability coverage that goes "over" your auto liability limits, homeowner’s liability, boat liability, etc. Carrying an umbrella policy is a good idea for drivers with considerable assets to protect. You usually have to purchase maximum auto insurance coverage (or near to it) before you can buy an umbrella policy.

On to part 3