So you Bought a New Car


8/31/2015 10:00 AM

With new cars comes the need for auto insurance, and liability coverage alone will not be adequate. While liability coverage alone satisfies the state's legal minimum requirements, it will not be enough to compensate for most accidents. In most cases, owners of new vehicles have unpaid loans to think about, so repairs are almost impossible to pay for. Spare parts are often expensive if they are available at all. As soon as a new car leaves lot, its value depreciates considerably. For this reason, the majority of vehicle owners feel safer with insurance that covers accidents, theft and natural disasters. Consider the following tips when looking for coverage.

1. Shop Around
People who are serious about buying a new car should get quotes on a new policy BEFORE signing the papers and taking the keys. The first step is to obtain quotes from several companies. These quotes are free, and they offer a reasonable estimate of what premium amounts will be. We do business with a lot of different companies and can help find you the best rate.  Several factors contribute to determining a premium, so it is very important to shop around.  Know what you're getting into before you get in to it!

2. Pay Attention To Comprehensive & Collision Insurance
Since people like to save money any way they can, they often skip extra coverage beyond the state-required liability minimums. Comprehensive coverage protects vehicle owners form a wide array of incidents aside from collisions. Natural disasters and several other calamities are covered. Collision insurance provides money for damages resulting from an accident. The funds are available whether the vehicle owner was at fault or not. When compared with the cost of paying for accidents upfront, insurance is very affordable.  Keep in mind, if you are financing or leasing your car, the finance/lease company will require you to have this coverage.

3. Think About GAP Insurance
Many new car owners prefer this type of coverage. It provides funds for the difference between the vehicle's market value and the unpaid loan amount. If a vehicle is lost or stolen, there will be adequate compensation. This is a great choice for people who own expensive luxury cars or have sizable loans to repay. When the amount of money owed is higher than the vehicle's market value, GAP insurance is a good choice. 

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