Insuring Your New Car

Owning a new car is exhilarating. Who doesn't love the aroma of a freshly manufactured interior, the crisp feel of seats waiting to be broken in or the immaculately shiny exterior? Before you leave the dealership in that beautiful new vehicle, you need to make sure that you are adequately protected in the event of an accident or incident. Although some companies may automatically carry over your coverage if you already have a policy with them, some do not, and you may be in for a shock if you purchase a car without setting up arrangements for insurance. Take care of the insurance details before you sign on the dotted line for the car.

Am I insured Immediately After I Buy?

If you aren�t sure you will be insured immediately upon buying a new car, the safest thing you can do is contact your current insurance provider for clarification. It might also be worth your while to compare insurance quotes to make sure you are getting the best rate available. Doing this before purchasing the new vehicle allows you to budget accordingly and enjoy the peace of mind in understanding you are protected.

Some Dealerships Offer Temporary Coverage

If you drive off the lot without notifying your insurance company of your new car purchase, you may still be covered temporarily. If you traded in your old vehicle, some dealerships will provide coverage through their own insurers for a short period on your new automobile. This gives you some leeway to contact your current insurance company to update your policy or shop for new coverage. You will definitely want to avoid any procrastination when it comes to updating your policy, as dealership-provided temporary coverage typically lasts 14 to 30 days after the purchase. If you fail to contact your insurer or purchase another policy, you will no longer be protected after the grace period has elapsed.

Transferring a Policy

Because insurers vary in their insurance transfer policies, it is important to call your insurance company as soon as possible after making the car purchase. If you are keeping your old car, or are purchasing this car for business purposes, you may not be covered at all until you buy new coverage. Similarly, if this is your first car purchase, you might not be covered. If your insurance company automatically transfers your old coverage to your new car, it is important to keep the following in mind:

The coverage you currently carry will be the same when you buy a new car unless you notify your insurance company and make the appropriate changes. If you currently only carry liability coverage (required by law), you will be required to add comprehensive and collision coverage if financing your new car. Lenders are strict when it comes to adequate coverage, so you will need to show proof of coverage before completing a transaction.

Update Your Policy as Soon as Possible

Although not always required, it is beneficial for you to notify your current insurance company of your new car purchase in a timely manner. Many drivers take the opportunity to compare new car insurance quotes at this time to determine if they can find a better deal. Consider the following when updating a policy or comparing different plans:

Make Sure You are Adequately Covered

When updating or buying new coverage, it is important to make sure it adequately covers your new vehicle. If the newly purchased automobile has a high value or your lender requires certain loan/lease payoff coverage, it is in your best interest to raise the liability limits for additional protection. It would be very unfortunate to get in an accident and discover that your coverage is insufficient to reimburse you for damages. If you are financing the vehicle, you would have to pay your lender.

Take Advantage of New Car Discounts

Since most new cars are more reliable than used counterparts, many insurance companies offer discounts and incentives towards insuring a new vehicle. When updating your current auto insurance policy or applying for new car coverage, make sure you inquire about new car discounts. These discounts can last up to three or five years, which translates into sizable savings. Features such as automatic safety belts, electronic stability control, airbags or anti-lock braking systems (ABS) can save you a lot of money on car insurance coverage!

Additionally, insurers offer generous discounts for advanced safety features. Since most new cars are loaded with innovative safety technology, it is important to make sure you are benefiting from all applicable safety discounts. By simply providing the Vehicle Identification Number (VIN) of your new car, your insurance company should be able to determine which safety features qualify for discounts. That said; make sure you notify your provider concerning any upgraded safety equipment installed by the manufacturer to maximize your savings.