Buying a new car can be exciting, but it can also be very stressful. There are so many decisions you need to make -- where to buy, what color to get, which make and model, etc. One of the most important decisions, however, is what insurance you are going to buy for the new vehicle. Take a look at some of the things you should do as you shop for your new dream car.
Get a Quote… Before You Buy
It may seem like you should pick out the car and then start to look for insurance, but it can be helpful to be looking at quotes as you shop for your new vehicle. Different types of cars have different premiums. For example, if you are torn between a small coupe and a mid-size crossover, you may see that the quote for the crossover is much cheaper. This could affect your decision-making process, and if you do choose the coupe, you won’t be surprised when you see that your premium is a little high.
Your premium could also go up if the car you buy is difficult or expensive to repair, like a luxury vehicle or a sports car. On the other hand, your premium could even decrease if the car has a lot of safety features or is affordable and easy to repair. Your company could also offer discounts such as a multi-car discount, which would lower your premium if the new car is being added in addition to another.
You should also get quotes from several different insurance companies. Just assuming that your current policy will be the right option could hurt you. If putting this new car onto your current insurance is going to make your premium go up significantly, you may be able to find a different company with a better rate. If you decide to change companies, check to make sure there will not be a lapse in coverage between your old policy ending and your new policy beginning.
Get Coverage Immediately
If you are getting a loan, you will be required to prove that you have insurance before you ever drive your car home. Even if this is not your situation, you should still have insurance before you start driving, because it is illegal to drive without it. You could also easily get into a wreck as soon as you start driving, and without insurance, you could be facing a serious financial burden, right after you spent a lot of money on your new car.
If you only have liability coverage on your current policy, you may have to take out collision and comprehensive coverage on your new car if you are getting a loan. This is a good idea even if you are not required, because the minimum coverage does not protect you or your vehicle.
If you are not sure what will be covered with your current policy, check your declarations page, the page near the front of your policy that lists all of your coverages. It is important to be familiar with this page and keep it up to date.
You must call your insurance agent as soon as you know what car you are going to buy. It is your responsibility to be sure that they know about all of the cars on your policy. Your new car may not be covered if the insurance company was not aware of it, especially if you have had the car for a long period of time.
Consider Gap Coverage
Taking out a loan on a car can be risky because as soon as you start driving, the vehicle’s value starts to go down. Gap coverage protects you from that problem. It covers the difference between your loan amount and the actual cash value, the value of your car before the accident, if your car is totaled. This is something that can be very important if you are upside down on your loan, which means that your car is not worth as much as the money that you still owe. If your carrier does not provide gap coverage, you may need to look around for other options.
So, congratulations on your decision to buy a new car! Just make sure that getting insurance is a big part of that decision.