Best Auto Insurance Rates for New Automobile
How to find the best rates for insuring a new vehicle?
Purchasing a new automobile can be incredibly exciting, especially when you've only ever driven used automobiles. There's a reason, after all, that hands-on automobile washes and car detailers offer "new vehicle smell" as a scent option. Before you and your precious new ride leave the lot, it's important that you get your auto insured. In fact, we recommend that you handle insurance before you even sign the purchase contract.
While we know you want to find cheap auto insurance for your new automobile, we want to remind you of a couple of things:
- Financed vehicles require full coverage. If you're like most of us, and have to either lease or finance your new automobile, you should know that your lease company or lender will probably require that you have comprehensive and collision coverage in addition to whatever combination of liability coverage, uninsured/underinsured motorist coverage and personal injury protection (PIP) is required by law in your state of residence.
- New vehicles come with new premiums. If your previous car was much older, a new car with more technology and a higher blue book value - as well as being a greater temptation to would-be thieves - may cause your vehicle insurance rates to increase.
If you used your old automobile as a trade-in, many insurers will cover your new automobile for two weeks to a month, and some state laws require a longer buffer period than that - but not all do. If you are keeping your old vehicle, or if your new car or truck is being purchased for business purposes, you may not have coverage at all. All car insurance companies have different transfer and extension policies, so don't just assume you have coverage.
Even though it's likely that your new automobile will cost more to insure than your old automobile, there are still many insurance discounts that can help knock down that higher new-vehicle premium.
We suggest that you consult your auto insurance broker once you have an idea of what make and model of new car you plan to purchase, so that you can be certain that your budget will absorb the new cost of car insurance, as well as your new automobile payment. Remember that with leased cars, you may also have to have gap insurance.
The other reason to have a chat with your existing auto insurance company before you purchase a new car is to make sure you're covered from the moment you leave the lot.
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