Tips, tricks and hints to help you hunt for auto insurance for your new car.
Whether you’re getting your dream car or your A to B car, you gotta get insurance coverage. This will not only help you avoid any unnecessary legal fines but keep if your vehicle protected from covered loss. And while we understand car insurance is probably the most boring aspect of owning a car, we’ve outlined some tips and ways to save on car insurance for your new vehicle. Let’s get started.
If you buy your car from a dealership, they’ll most likely require you show proof of insurance prior to driving the vehicle off the lot. This is especially true if you lease or finance the vehicle. Understanding what you’ll need to get insurance quickly is imperative if you don’t want to spend your entire day at the dealership (who does?). Let’s outline some simple tips to get you in the driver's seat as soon as possible.
In order to get the more accurate car insurance quote, you’ll need the following:
Once you find the vehicle you want, you can get a quote prior to actually purchasing the vehicle by using the VIN. Many dealerships list the VIN on their website, allowing you to get an accurate estimate of your car insurance quote. Most insurance companies will then give you a quote number to retrieve the saved quote.
Once you activate the policy, your new insurance company will send the dealership your proof of insurance and you’ll be able to drive off the lot. Simple as that!
While the process of getting your first vehicle versus your second is largely the same, having an established policy does give you some leeway in terms of when you can add your second car. Depending on your policy, you could have anywhere between 14-30 days to list your additional vehicle. If this is a feature of your insurance policy, the coverage you carry on your other vehicles would extend to the new vehicle for a predetermined amount of time.
The only caveat here is if the dealership requires you add the coverage immediately. If this is the case, you should follow the steps listed above for getting a quote.
After the sum cost of the vehicle, your car insurance is the second most expensive part of owning a vehicle. Let’s explore ways to save on car insurance./p>
If you don’t know much about car insurance, you might be more inclined to use it if you damage your vehicle, rather than just covering the cost yourself. Unfortunately, car insurance companies may financially penalize you if you file a claim, no matter if it’s your collision or liability coverage.*
Bear in mind, this does not take into consideration not-at-fault accidents such as comprehensive and uninsured motorist claims. Comprehensive claims, because they happen outside the control of the driver, are often rated on your car insurance premium as a not-at-fault accident. If, however, your insurance company rates your not-at-fault accidents as at-fault accidents, consider it as a good opportunity to explore other insurance options.
As stated above, you'll want to look at your specific state to see the average rate increase for an at-fault accident. Still, we calculated a US-average rate increase over 3 years after an at-fault accident claim. Data show filing a claim will cost nearly $2,000, plus your deductible, once all is said and done.
Average Increase after at At-Fault Claim
|Increase at 6 months||Increase at 12 months||Increase at 3 Years|
*This solution only applies to instances pertaining to your vehicle. If the other party in an at-fault wants to go through your insurance company, which is common, you don't have a choice.
If your vehicle really is “new,” you do not have a lot of wiggle room in terms of what coverage you can have. Most of the time, if you have a lease or loan on the vehicle, having “full coverage” is a requirement of your agreement. By full coverage, we’re referring to comprehensive and collision, which aren’t required by law and only protect your vehicle.
So, if your vehicle is paid off and an older model, you might not need this additional coverage. A general rule of thumb in the world of insurance is if your vehicle is worth less than $4,000, you probably don’t need physical coverage. You can determine the value of your vehicle by using Kelley Blue Book or NADA guide online.
If, however, your vehicle is worth more than $4,000 but you still want to save, consider increasing your deductible. If you raise your deductible on your collision or comprehensive coverage, you lower your premium.
Average Annual Premium by Coverage Level
|Coverage Level||Average Annual Premium|
Another benefit of this is it decreases your incentive to use your deductible rather than pay out of pocket. As we learned from the section above, using your collision coverage can have long-lasting effects on your insurance. By decreasing the dollar value of what you would receive in compensation, there is less of an incentive to file a claim.
While most of these discounts are small (3-5% in savings), grouped together they can add up to make your premium more affordable.
After it’s all said and done, you might just be paying too much because your current car insurance company is too expensive. Your best bet is looking at as many car insurance companies as possible to see if you could get a better rate elsewhere. Use our comparison calculate here to see if you’re getting the cheap car insurance rate possible. Get started now.
If you’re looking for more ways to save on car insurance, or just information in general, see our additional articles here:
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