Understanding The Intricacies Of Insurance

3 Things To Know About Auto Insurance When Buying A Brand-New Car

Buying a brand-new car is exciting yet costly. When you purchase a new car, you will probably want to take good care of the vehicle, and part of caring for a vehicle is having the right auto insurance coverage. As you prepare to buy a brand-new car, here are three vital things you must know about auto insurance.

You Cannot Leave the Dealership Without Proof of Coverage

One of the most important things to know when buying a new car is that you cannot leave the dealership without proof of auto insurance coverage for your new vehicle. If you currently have an auto insurance plan, it might cover your new car for the first day, week, or month, but you should call your agent to find out before assuming that this is true. If you do not have insurance when buying a new car, you will need to find an insurance agent before you shop for the car. Once you choose a car, you can contact the agent again to start the policy. The agent can email you the proof of coverage, and you can show this to the car dealership to prove that you have this requirement.

You Will Need to Meet Your Lender's Requirements

The second thing to know is that you must purchase the right auto insurance coverage types, and your auto loan lender will tell you what they require. Most auto loan lenders require full-coverage insurance plans for new cars with loans. As a result, you will likely need to purchase collision, comprehensive, and liability coverage for the vehicle. You can ask the dealership what the requirements are if you are unsure.

You Might Want to Add Gap Coverage

Finally, it might be wise to add gap coverage to your vehicle insurance plan. Gap coverage is only necessary for new cars, as it adds an extra layer of protection for you. With gap coverage, you have insurance that pays the deficit if you ever total your car. Instead of owing the deficit on the loan, your insurance plan pays it. If you have never purchased gap insurance before, talk to an agent to learn more about how it works.

When you buy a brand-new car, you will want to have enough auto insurance coverage on the vehicle. If you have questions about buying an auto insurance plan for a brand-new car, contact an auto insurance agent today.

For more information about auto insurance, speak with a local provider.