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 details before you sign on the dotted line.
Am I insured Immediately After I Buy?
If you aren't sure you will be covered immediately upon buying a car, the safest thing you can do is contact your current provider for clarification. It might also be worth your while to compare quotes to make sure you are getting the best rate available. Doing this before purchasing the 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 insurer of your purchase, you may still be covered temporarily. If you traded in your old model, some dealerships will provide protection through their own providers for a short period on your automobile. This gives you some leeway to contact your current insurance company to update your plan or shop for coverage. You will definitely want to avoid any procrastination when it comes to updating your plan, as dealership-provided temporary coverage typically lasts 14 to 30 days after the purchase. If you fail to contact your provider or purchase another plan, you will no longer be protected after the grace period has elapsed.
Transferring a Policy
Because companies can vary in their transfer policies, it is important to call the company as soon as possible after making the purchase. If you are keeping your old vehicle, or are purchasing one for business purposes, you may not be covered at all until you buy a new plan. Similarly, if this is your first car purchase, you might not be covered. If your insurer automatically transfers your old protection to your new automobile, it is important to keep the following in mind:
The protection you currently carry will be the same when you buy a car unless you notify your insurer and make the appropriate changes. If you currently only carry liability coverage (required by law), you will be required to add comprehensive and collision if financing your automobile. Lenders are strict when it comes to meeting insurance standards, so you will need to show proof of insurance before completing a transaction.
Update Your Protection as Soon as Possible
Although not always required, it is beneficial for you to notify your current provider of your purchase in a timely manner. Many drivers take the opportunity to compare quotes on a new plan at this time to determine if they can find a better deal. Consider the following when updating a plan or comparing different plans:
Make Sure You are Adequately Covered
When updating or buying a policy, it is important to make sure it adequately covers your auto. If the recently 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 peace of mind. It would be very unfortunate to get in an accident and discover that your protection is insufficient to reimburse you for damages. If you are financing the vehicle, you would have to pay your lender.
Take Advantage of Discounts
Since most new cars are more reliable than used counterparts, many insurers offer discounts and incentives towards covering your investment. When updating your current policy or applying for a new one, make sure you inquire about 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!
Additionally, companies 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 car, your insurer 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.
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