New car insurance tips are important to know if you are looking to be the proud owner of a new car. New cars do have some special needs compared to older vehicles. A new vehicle does not necessarily mean you need a new car insurance policy however, it is the perfect time to review your car insurance policy.
Notify Your Insurance Company
Many car salesmen will call and change vehicles on your car insurance for you. It is a nice courtesy, but you will still want to verify everything is set with your car insurance policy through your insurance agent or customer service representative.Things to confirm with your insurance agent:- Removal of your old vehicle if you are replacing it
- Verify coverage
- Get proof of insurance
- Ask about the cost of insurance for your new vehicle
Anytime you make a change on your car insurance policy, look to get a new declaration page from your insurance carrier. The only true confirmation of change is when you have the new dec page in your hand. If you do not receive one within a week of your request, notify your insurance company.
Putting no down payment on your new car purchase can easily put you underwater on your car loan. Meaning you owe more for your new car than the value of the vehicle once you drive off the lot. Only a short window of time to purchase gap insurance is available.
Gap insurance can be purchase both through your car insurance and through your finance company. Whichever you choose, make sure it is in place before taking your vehicle off the lot. Although you may not want to consider it, major accidents can occur in newly purchased vehicles too.
If you want brand new parts straight from your vehicles manufacturer in case of a claim, you had better request an OEM endorsement. OEM endorsements are not really necessary on older vehicles. Older vehicles have old parts and may not require straight from the manufacturer parts although it is personal preference. Remember insurance companies are going to fix your vehicle like kind an quality, but they are also going to do it at the most reasonable cost. After-market parts and used parts are generally perfectly fine for auto repairs. However if your new car is your baby, you will probably be happier paying the extra cash for OEM parts.
Your idea of full coverage and your insurance agent’s idea of full coverage could be two different things. You need to specifically request coverage like towing and car rental when speaking with your insurance agent. Understanding what full coverage entails will make sure you are happy with your insurance policy.
Anytime you finance or lease a vehicle a loss payee and or additional insured needs to be added onto your car insurance policy. Your lender wants verification you have a policy in force and they also want to know what your coverage is at all times. By listing a lender or co-owner on your car insurance policy, they will be updated about any coverage change or vehicle change pertaining to the vehicle they are assigned. Most lenders require a copy of your declaration page showing them as loss payee before processing your loan.
You want to be able to enjoy your new ride without stressing about potential accidents and insurance coverage. Get it right the first time by communicating properly with your agent. If you are not happy with your agent’s service or your price, it might be time to start shopping for a new insurance carrier. Any time you make a major change on your insurance policy, it is time to review your coverage and price.
