If you are purchasing a new vehicle, you need to make sure you are thinking about how to get insurance properly for your new vehicle. When you own a vehicle, you need to ensure that you always have adequate insurance coverage.
1. Find Out How Long Your Current Insurance Will Last
First, if you already have a vehicle and car insurance, you need to understand how long your current car insurance will last. Generally, your car insurance coverage for your old vehicle will extend to your new vehicle for a pre-determined amount of time, according to the terms of your policy.
However, if you are not replacing one car with another and are instead purchasing an additional vehicle, you may not have any coverage at all. Always call and check with your insurance provider and see if your insurance will get extended to your new vehicle and how long it will extend without you providing your insurance with information about your new vehicle.
2. Consider Gap Insurance
When you are purchasing a new vehicle and taking out a loan, you will want to consider adding gap insurance to your policy.
Gap insurance will help you pay off your loan balance if your vehicle is totaled and there is a difference between the value of your car and the amount you still owe on your loan. It is a great way to protect your financial insurance.
3. Get a Quote
Don't assume a new vehicle will carry the same insurance risk and cost as your current vehicle. Before buying a car, always get the VIN, call your insurance company, and get an insurance quote.
Remember that if you are getting a loan to purchase your vehicle, you need more than the minimum amount of coverage. You need to buy comprehensive and collision insurance as well. If you don't currently have that level of coverage, your monthly premium may be higher than it is now. You need to fully understand the cost of purchasing a vehicle before you go through with the purchase.
When purchasing a new vehicle, find out how long your current insurance will cover you before you set up a new insurance policy with them. Consider adding gap insurance to your policy, and get a quote before you purchase the car so you have a good idea of what your insurance will cost you. It is essential to ensure you have insurance before you drive off the car lot with a new vehicle.
Speak to an agent to learn more about auto insurance policies.