Tips for Finding the Right Coverage for a New Vehicle

Tips for Finding the Right Coverage for a New Vehicle

Purchasing a new vehicle is an exciting time in your life. You’re obviously looking forward to hitting the road. However, you still need to be attentive about insuring your vehicle. Having the right insurance coverage can prevent you from dealing with a lot of stress in the event that your new car suffers damage.

Contact your insurance provider before you head to the dealership. Ensure that you have all of the essential information with you. You won’t be able to finalize the transaction until you can show proof of insurance. Be aware that some insurance carriers provide an insurance grace period for a new vehicle. Here are some simple tips for purchasing insurance for your new car.

  • Liability Coverage Is Important

Most states mandate that you should at least have adequate auto liability coverage. Liability coverage protects you if you are ruled to be at fault for an accident and you injure someone or damage their property.

  • Test Drives

Perhaps you plan to test drive the vehicle before purchasing it. If you plan to test drive the vehicle, most insurers will cover you. Car dealerships are generally required to cover the vehicles. Their insurance covers you if an accident occurs while you’re going for a test drive.

However, it’s possible that the dealership may seek reimbursement for the accident. You are also covered if you test drive a private vehicle and something happens. You may be classified as a permissive driver, which prevents you from being held liable for the repairs. Make sure that the owner has insurance before going for a test drive.

  • Financing

Things are slightly more complicated if you plan to lease a car or need financing. If you don’t have the appropriate coverage or cannot provide proof of adequate coverage, the transaction may be delayed. Your lender may need you to add collision and comprehensive insurance to your policy to help cover risks. Read over the contract to see if a forced place clause is included.

This allows the lender to add insurance costs to your monthly premium if you don’t obtain insurance within a specified time frame. GAP coverage is another option. GAP coverage fills in the gaps between the amount you owe on your vehicle and the amount that the vehicle is worth when it suffers damage.

  • Replacing Your Old Vehicle

If you are planning to purchase a new car, you may still be able to set up your current coverage for your new vehicle if you are paying cash or you have a clause in your policy that outlines how long you have to report your new vehicle. You will have the exact same coverage on your new vehicle that you have on your old vehicle until you amend your policy to add extra coverage.

Purchasing a car is an exciting time in your life. However, it’s important that you have insurance before finalizing the transaction. You can use your current insurance policy to cover your new vehicle as long as you have a plan. If you have any questions, contact our team of insurance experts at Gee Schussler Insurance Agency.