An insurance rider is also called an option. Riders allow you to modify the basic insurance account to make it better fit your particular needs. Riders are available for most types of insurance, including health, homeowners, and automobile insurance. In each case, the riders change the base policy, "riding over" the default contract. A rider can add something to the policy, or it can be used to exclude events or conditions from being covered at all. By selecting riders that apply to you, the policy is customized to give each individual the best possible coverage.
In car insurance, a rider might be purchased to cover after-market changes to the vehicle. GAP insurance is a type of car insurance rider that will pay off the balance owed on a vehicle when the amount is greater than the car's insured value. Other popular car insurance riders include roadside assistance, rental car reimbursement, and multi-vehicle insurance policies.
Health insurance riders generally add coverage against a particular event or condition that is not generally included in the plan, or it could be the exact opposite. A health insurance rider might qualify the insured person by excluding a particular pre-existing condition, or reducing the amount of coverage available for, as an example, cosmetic surgery or rehabilitative services.
For homeowners, rider might include regional disaster insurance, such as hurricane insurance in Florida. Rider may also be used to add a vacation home to the main insurance policy, or to increase the insured amount of personal property in the residence. Some homeowner's policies do not include ATV's or recreational water vehicles that are parked or used on the property, but riders are available to extend your liability protection.