Thinking about purchasing a brand new car? Buying new is great for saving money on maintenance and repair costs. However, the monthly payments can be a burden. Luckily, most new cars are cheaper to insure than older, pre-owned vehicles. They may even qualify for a new car insurance discount. And in addition to this discount, you may be eligible for other affordable coverage options to help you protect your new car.
Most automotive insurance companies will offer up to 10% or more off your monthly premium for a new car insurance discount. These discounts can climb even higher if, say, you’re switching from an old, unsafe SUV to a fuel-efficient sedan with a high safety rating.
While you’re considering a new car purchase, you should also keep the vehicle’s rapid depreciation in mind. The second you drive it off the lot, its resale, trade-in, and fair market value will drop by thousands of dollars. And if your vehicle suddenly needs to be replaced, you could end up upside-down on your car loan (or be in debt to your dealership if you are leasing the vehicle). To protect yourself against this situation, ask your insurance agent about Loan/Lease GAP coverage and Repair/Replacement Collision Coverage.
Whether you are purchasing your car with a bank loan or leasing it from the dealer, you will need to show them proof of insurance before driving it off their lot. Shopping for car insurance for new car? Compare rates online.
If your new car purchase is replacing your current vehicle, your insurance company should give you between 14 and 30 days to contact them for a new insurance policy quote. Your car insurance company needs to know this so that they can accurately insure you based on the make and model of your new car. It’s actually a good idea to contact them before you make a final purchase just to see if there are similar vehicles which can be insured at a lower premium.
Whether you’re buying your first car or replacing an old one, an accident can happen at any time. And even if you have full coverage insurance, you may not be as protected as you’d think. For these gaps in coverage, there’s GAP insurance (short for Guaranteed Auto Protection). First, make sure your insurance company offers GAP insurance; most of them do, and at a relatively low cost. Get a new car insurance quote now!
With Gap insurance, you’ll be protected from a huge bill if you get into an accident while still paying off the financing on your automobile. Sometimes, a total car is valued at less than what you still owe. This can make paying for repairs or a replacement extremely difficult. But with GAP insurance coverage, you won’t be stuck paying for two cars at once.
Enjoy more than just that new car smell – make sure your auto insurance company gives you a new car insurance discount with your updated policy premium.